PLP's £3m bill for KPF breakaway
Compensation costs totalled £2.1m
The decision by the five KPF architects who broke away to form a new London office cost them close to £3 million in compensation and legal fees.
Figures disclosed in its 2011 report and accounts reveal that PLP Architecture forked out £2.1 million in July under a ‘settlement agreement’ the pair drew up in September 2009 – days after the five (pictured) walked out to set up a new firm.
PLP said its bill for putting the agreement together was nearly £750,000, likely to have been its legal costs.
PLP added: “This agreement provided compensation to KPF, whereby certain contracts for architectural services (business) were transferred from KPF to PLP (at the request of the clients) in return for a level of contingent consideration.”
The firm took on a third more staff in 2011 with numbers standing at 90. Pre-tax profits stood at £1.4 million while turnover was £12.6 million with two thirds of revenue coming from its UK business. In the five months to December 2010, pre-tax profits were £104,000 on turnover of £4.9 million.
The accounts, which were signed off by director Lee Polisano, show that the highest paid director took home £175,681 compared to £73,000 the year before.