Construction slowdown hits BDP

THE slowdown in the construction sector is continuing to take its toll on Manchester-based architectural practice Building Design Partnership (BDP).

Newly-filed accounts for the business reveal that in the year to June 30 turnover dropped 17% to £79.7m, while pre-tax profits fell by 45% to £3.2m.

The practice, which is currently holding an exhibition at Manchester’s CUBE gallery celebrating its 50th year in business, has sought to reduce its reliance on its home market in recent years by opening more international offices – in particular by focusing its efforts on growth markets in the Middle East and Asia. Its most recent is its office in Shanghai, which opened in April.

Despite this, the average number number of staff fell from more than 1,000 to 926 during the course of the year. Last week, the practice also confirmed plans to lay off up to 100 more staff at offices in London, Winchester and Sheffield, which it blamed on public sector spending cuts generally, and specifically to delays affecting £420m hospital scheme it has designed in Brighton.

Notes to the company’s accounts prepared by group finance director John Parker state that the  overseas openings are “widening the planning and design opportunities available to the group”.

Moreover, it said the fact that it works across many market sectors meant that it had a “flexibility and depth of expertise” which were needed to respond to market conditions.

During the year, its net cash fell by £2.3m to £10.1m, but a reduction in level of liabilities incurred by a (now closed) final salary pension scheme meant that the group moved from having a net deficit of £3.4m to assets of £2.4m.