BDP achieves overseas growth as UK revenue falls

ARCHITECTURE group BDP saw sales and earnings fall last year but it enjoyed growth in overseas markets.

Recently filed accounts for the group, which master-planned Liverpool One and designed the revamped Lancashire County Cricket Club, show turnover was down 15% to £67.6m while pre-tax profits dropped from £3.1m to £966,000.

Revenue decline was steepest in the UK, down 18%, although income from European business fell by 17%. The only growth came from outside Europe, up nearly 1%.

A key strategy of the group, which has its headquarters in Manchester, is to develop international studios in other regions of the world, such as India, China, Shanghai, Abu Dhabi and United Arab Emeriates.

The UK still accounts for the lion’s share of the group’s revenue. Some £50m came from work in this country; £4m from Europe and £12m elsewhere in the world.

As a result of the economic downturn the group was forced to close its office in Liverpool and shed 163 staff last year, down 16%, to 817. But it now expects staffing levels to “remain relatively stable” with the prospect of some modest growth.

The net pension liability at June 30 was £26.5m, up £7.8m on the previous year. This increase had left it in a net asset liability position as its assets are worth £20.8m.

In the accounts it said: “The company is in ongoing constructive dialogue with the scheme’s trustees regarding the fact that the directors consider that the pension liability will require long term funding and therefore this liability does not impact on the ability of the company to continue as a going concern.”

Chief executive Peter Drummond said: “Yes, fees and profit went down, but given the economic climate of 2011, we were very pleased that we achieved an income of £68m. Profit dropped proportionately more than turnover because we continued to invest in our international network and fee levels have decreased dramatically, but we steadfastly held our salary levels for staff.

“We were affected in 2011 by a dramatic slowdown in schools and healthcare spending programmes in the UK, and the stop-start nature of commercial projects.

He added: “Over the past six months we have noticed a positive change in the UK, leading to a more stable picture, but we remain cautious. Education and healthcare work has increased, especially universities and some major hospitals, such as Alder Hey. 

“Town and city centre retail development is slowly returning with schemes beginning to move in places such as Dublin, Oxford, Bracknell, and Glasgow. Housing projects are becoming a stronger part of our workload, in London and Manchester. And office work for owner occupiers has also returned. Internationally, retail, masterplanning, universities, and schools lead the way for our international studios working with our UK specialist teams.”

The group’s main operational trading company, Building Design Partnership, reported a profit of £1.55m on turnover of £67.6m. Cash and investment balances reduced during the year but remained at  a positive level of £16m
 
No dividends were paid during the year. The highest paid director received £203,447, down from £284,215 last time.