Turnover increased by 31% in 2021 as staff numbers fell, latest figures show

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RSHP’s Parc1 commercial complex in Seoul, which completed in 2021

RSHP saw profit before tax more than double to £5.7m in 2021 on the back of a 31% increase in turnover, its just-published group accounts for the year reveal.

But the practice, founded by Richard Rogers, flagged that inflationary pressures over the past 15 months mean it expects profit to take a hit in its 2022 results.

The latest RSHP Group figures show profit before tax more than doubled from £2.3m in 2020 while consolidated annual turnover increased from £19.3m to £25.4m.

Regionally, UK work accounted for the biggest slice of RSHP’s turnover: almost £6.8m. China was the practice’s second-biggest market in fees terms, accounting for £5.8m of the overall figure.

In a strategic report accompanying the results, RSHP director Ian Birtles said the combination of Brexit, the aftereffects of the Covid-19 pandemic, rising inflation and the cost-of-living crisis were responsible for an “ongoing lack of confidence” in the market for architectural services. However he said RSHP had secured more potential work than was previously anticipated.

“We expect that a number of London-based projects should start during the first half of 2023 and due to a slowing down in the construction market in China we expect the percentage of our work in the UK to increase in 2023,” he said.

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Source: Lloyd’s of London

Last year RSHP was appointed to draw up plans to repurpose its grade I-listed Lloyd’s Building

Despite the upbeat message on RSHP’s domestic pipeline of work, Birtles’ report said the practice expected 2022 turnover to be flat and profit to come under pressure.

“We continue to be prudent with regards to income recognition and consequently we are currently projecting that our consolidated turnover will be broadly in line to that for the year to 31 December 2021,” the report said. “As a result of increasing costs we anticipate that profitability will be lower.”

RSHP’s staffing figures indicated architectural headcount dropped from 113 in 2020 to 100 in 2021, based on a monthly average. Overall headcount was 146, down from 168.

The report said the practice had recently announced a £1,500 payment for all UK staff to help with the cost-of-living crisis.

It added that RSHP Group paid no remuneration to its direcors in 2021.

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