Pre-tax profits fall to £2.7m despite turnover doubling
AIM-listed architect SMC Group has reported a 4% drop in profit for 2006, the year in which it acquired Will Alsop’s design practice.
Pre-tax profit fell to £2.7m from £2.8m during the year ended 31 December 2006, despite turnover more than doubling to £31.3m. The results follow a profit warning issued by the practice in January.
Sir Rodney Walker, executive chairman, said: “Although we are reporting figures that are less than original market expectations for 2006 I believe the business is more soundly based for 2007, and beyond, which should enable it to meet its targets going forward.”
Walker, previously chairman at the group, became executive chairman in February after the group issued its profit warning. He is currently reviewing the business, but said that to date the review had identified opportunities for annual overhead and operational savings of around £1.4m.
The group completed nine acquisitions in 2006, including Alsop Architects.