Practice says halting work in Russia following Ukraine invasion cost £1.2m
David Chipperfield Architects has posted a pre-tax loss of £274,334 for 2022 despite increasing turnover by 33% during the year, the practice’s latest accounts reveal.
According to its figures for the year to 31 December 2022, revenue increased from £9.25m to £12.33m during the 12 months. But 2021’s modest pre-tax profit of £179,988 was followed by a plunge into the red.
Chipperfield said its finances took a £1.2m hit as a result of its “immediate withdrawal” from Russia, prompted by the onset of war in Ukraine in February 2022. The practice has stated it will not recommence any work in Russia until all troops are withdrawn from Ukraine.
Nevertheless, the practice said it had increased headcount during 2022, with average architectural staff numbers of 76 – up from 63 the previous year. Management staff also increased from nine to 13. Total staff numbers averaged 109 during the year. The figure for 2021 was 93.
A strategic report accompanying the accounts said the larger headcount reflected an investment in staff and “building the practice structure to support long-term sustainable growth”.
The practice said that its profit had also been impacted by “significant” ongoing investment in the business’ IT infrastructure, practice-management software, BIM software and related training and hardware.
Fees generated per architect increased by just over 10% year-on-year, at £162,286 in 2022, up from £146,832 the previous year.
The strategic report said economic risks in the UK and the world economy “remain a concern”. It added that staff retention was “a risk” because of the impact on the international staff base of the increased cost of living in London.
However, it predicted “further growth” for 2023 and said there is “strong” value under contract for 2024.
Regionally, work in Europe and the Middle East accounted for the largest slice of Chipperfield’s revenue: £4.32m. UK work came second at £3.47m, followed by work in North America and South America on £2.53m and “rest-of-world” revenue of £2m.