Hawkins Brown Faces Significant Profit Slump, Implements Staff Reductions

Architectural firm Hawkins Brown has announced significant staff cuts following an alarming 80% drop in pre-tax profits for the year ending March 31, 2025. The firm’s financial performance has seen a notable decline, prompting these measures to address the challenging economic climate.

Key Takeaways

Pre-tax profit plummeted by 79%, from £1.3m to £267,000.
Turnover decreased by 16%, falling from £35.3m to £29.5m.
The average number of employees was reduced by 49, a 15% decrease.
The firm’s wage bill saw a reduction from £17m to £15.2m.

Financial Performance Decline

Hawkins Brown reported a substantial decrease in its financial standing for the fiscal year 2024-2025. Turnover experienced a 16% fall, dropping to £29.5m from £35.3m in the previous year. More critically, pre-tax profit saw a dramatic slump of 79%, reducing from £1.3m to just £267,000. This significant downturn in profitability has directly led to operational adjustments within the practice.

Staff Reductions and Cost Savings

In response to the financial pressures, Hawkins Brown has reduced its workforce. The average number of employees decreased by 49, representing a 15% reduction from 318 to 269 individuals over the reporting period. These staff cuts have contributed to a decrease in the firm’s wage bill, which fell from £17m in 2024 to £15.2m in 2025, indicating a strategic effort to manage costs effectively.

Market Performance

The firm’s income from its primary market, the UK, also saw a decline, falling from £33.3m to £28m. International revenue also slid from £2m to £1.4m, reflecting a broader challenge across its operational territories. This reduction in income underscores the difficult market conditions the practice has been navigating.

Notable Projects

Despite the financial challenges, Hawkins Brown has been involved in several significant projects. The firm was responsible for the design of Manchester Metropolitan University’s All Saints Library, though plans had to be substantially revised due to escalating construction costs. Other projects undertaken during the accounting period include a refurbishment of the grade II*-listed Norwich City Hall and a major redevelopment of London’s Victoria Station in collaboration with Acme for Network Rail.