HOK blames profits woe on UK business
But firm says 2013 numbers will be better
HOK slumped to a pre-tax loss of more than £900,000 last year as the firm blamed a faltering UK economy for the slide.
The firm crashed into the red racking up a pre-tax loss of £935,500 from a £1.2 million profit in 2011. Turnover fell £3.5 million to £21.3 million.
In a statement accompanying its 2012 results, HOK’s finance director Andrew Childs said: “2011 proved to be a false dawn on the road to economic recovery as did the first half of 2012. The fall in turnover was experienced solely in the UK. This reduction reflected the parlous state of the construction industry in the UK.” He added that overseas turnover was up 12%.
But Childs said it had begun a recovery with HOK, which is one of the firms working on a scheme to transform the former BBC television centre in west London, saying that by the end of June this year it had “contracted 163% more work than it had contracted at the midpoint in 2012. Although income levels have yet to reflect this additional workload, they are expected to do so in the second half of 2013.”
He said revenue would be up on 2012’s figures and added: “We expect costs for 2013 to be reduced.”
The number of staff employed at the business fell from 172 to 157 during the period while the salary of the highest paid director stood at just over £197,000 – down £56,000 on last time.
Earlier this year, managing principal Rob Firth left the firm after two years at the practice. HOK said he wouldn’t be replaced.