Adjaye Associates has announced a pre-tax loss of £720,000 for the financial year ending December 31, 2023, marking a sharp decline from the £2.5 million profit reported in the previous period. Published on March 17 at Companies House, the firm's annual accounts reveal a significant drop in turnover, falling from £20.4 million in 2022 to £17.1 million in 2023—a reduction of over £3 million.
The firm attributed part of its financial setback to an exceptional one-off charge of £1.46 million, which was related to a "provision against withholding tax debtors." The financial downturn was also reflected in the firm’s geographic revenue performance. Its earnings from Asia saw a dramatic decline, dropping from £4.8 million in 2022 to just £891,500 in 2023. Revenue from the Middle East also decreased marginally, from £14.1 million to £13 million. However, there were positive developments in other regions: Africa's income rose from £261,000 to £1.4 million, while the UK and Americas both saw growth—UK revenue increased from £684,000 to £984,000, and Americas' income rose from £398,000 to £641,000.
This financial year coincided with the publication of sexual misconduct allegations against David Adjaye by the Financial Times, claims which the architect has consistently denied. The firm also undertook staff reductions, including layoffs in its London office. At the start of the year, the company employed 110 people, but by 2023, this number had decreased to 85, with turnover per employee declining from £213,000 to £202,000.
Despite the financial challenges, Adjaye Associates paid out a dividend of £1.89 million. In a statement accompanying the report, company director David Adjaye acknowledged the difficulties of 2023, stating: "It was a commercially challenging year for the construction industry at large, and this is reflected in our financial results. However, our position as one of the most diverse practices in the world—recognised for our quality and socially impactful work—provides a resilient foundation from which to recover."
The report highlights that Adjaye Associates continues to secure notable projects worldwide, including new commissions in Saudi Arabia, France, and other regions. The firm remains optimistic, emphasizing its robust reputation for both its architectural portfolio and intellectual and cross-cultural endeavors, which will help steer the company through this temporary downturn.
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source; citinewsroom
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