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LONDON (Alliance News) - Interior design firm Aukett Fitzroy Robinson Group PLC Monday said pretax profit rose 162%, but said it still had some way to go before realising its potential.
The firm which focuses on architecture, landscape and urban design and space planning posted pretax profit of GBP550,000 for the period ended September 30, 2013 up from GBP210,000 a year earlier, which it attributed to a substantial second-half uplift in UK revenue
AFR said its UK arm outperformed its targets for the year in terms of revenue and profitability. Year-on-year revenue minus sub consultant costs increased 21% to GBP6.1 million, from GBP5.0 million in 2012.
Profits by comparison increased substantially from GBP127,000 in the first-half to GBP961,000 for the full year compared with GBP38,000 in 2012.
AFR said this allowed the operation to start the slow rein-statement of remuneration waivers in the second half and for bonuses to be paid, for the first time in a long time.
The UK arm was boosted by a number of contracts with further projects in the pipeline.
Operations in Russia experienced contrasting fortunes with a "very poor start to the year," losing GBP245,000 in the first-half of the year, with two expected major projects not commencing leading to a loss of the team built up for ARF's hotel project in Sochi for the 2014 Winter Olympics which completed satisfactorily by the year end.
"Whilst some new projects and studies were won in the second half, including work on a new Jewish Cultural Centre just outside of Moscow and a concept office in Skolkovo, these were insufficient in both number and revenue to return the operation to profitability," AFR said.
Subsequently the operation lost a further GBP25,0000 in the second-half bringing the full-year loss before impairment to GBP270,000 compared with a profit of GBP58,000 in 2012.
The Middle East arm also struggled with a GBP132,000 loss compared with profit of GBP44,000 a year earlier, said the company.
The firm's 50% owned Frankfurt operation has had a fluctuating profit history in recent years, but now appears to be stable at higher revenue level, AFR said. It returned to profit in 2013 helped by a strong fourth quarter.
Despite an increase in profit revenue dipped 8% to GBP8.4 million, from GBP9.2 million, however minus sub consultant costs revenue rose 6% to GBP7.1 million from GBP6.7 million in 2012.
At the end of the year, the firm acquired Swanke Hayden Connell Europe, a large firm of architects and interior designers, for GBP1.6 million.
The board proposed to resume the payment of dividend at 0.01 pence per share.
The stock was trading at 9.00 pence Monday morning, down 0.62 pence or 6.5%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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