Adjaye Associates has reported a pre-tax loss of £720,000 for the financial year ending December 31, 2023, marking a significant downturn from the £2.5 million profit recorded in the previous trading period. The financial figures, published on March 17 at Companies House, reflect a challenging year for the architectural firm led by Sir David Adjaye.
The firm’s turnover dropped by more than £3 million, decreasing from £20.4 million in 2022 to £17.1 million in 2023. A substantial portion of the loss was attributed to a one-off exceptional item of £1.46 million, recorded as a “provision against withholding tax debtors.”
While the company’s revenue from the Middle East declined slightly from £14.1 million to £13 million, the biggest drop was recorded in Asia, where income plummeted from £4.8 million to just £891,500. However, the firm saw revenue growth in other regions, including Africa (£261,000 to £1.4 million), the UK (£684,000 to £984,000), and the Americas (£398,000 to £641,000).
The financial period also coincided with a reduction in the company’s workforce, particularly in London, where staff numbers fell from 110 to 85 by the end of 2023. The firm’s turnover per employee also declined, from £213,000 in 2022 to £202,000 in 2023, reflecting both the revenue dip and staff restructuring.
Despite the losses, Adjaye Associates continued to pay out a dividend of £1.89 million, indicating confidence in its long-term financial health.
The financial report was accompanied by a strategic statement from company director David Adjaye, who acknowledged the difficulties faced by the construction sector.
“2023 was a commercially challenging year for the construction industry at large, and this is reflected in our financial reporting for the period,” Adjaye stated.
He emphasized the firm’s adaptability and its strong global reputation as key factors in weathering the downturn. “Our position as one of the most diverse practices in the world, recognized for the representation we bring to architecture and for the quality and social impact of our work, together with our ability to be agile with resourcing, is a resilient basis from which to recover from a temporary downturn.”
Despite the financial setbacks, Adjaye Associates remains active in securing new projects. The firm continues to expand its presence in the UK, the Americas, the Middle East, and Africa. Among its recent wins are a major art project in Saudi Arabia and a large-scale residential development in France.
The company’s leadership remains optimistic about a recovery in the coming years, citing ongoing commitments and a robust portfolio of future projects.
