Make Architects has reported its second consecutive year of financial losses, posting a pre-tax deficit of $1.24 million for 2024, following a $1.46 million loss in 2023. Despite these challenging figures, the London-based architecture firm maintains that its practice has returned to an "even keel" and expresses optimism for future growth.
The company's financial struggles deepened in 2024, with annual revenue declining by 13 percent from $18.3 million to $15.8 million. This represents a significant drop from the firm's 2022 performance, when Make Architects generated more than $19 million in fees. The revenue decline was accompanied by substantial workforce reductions, as the average number of employees across the Make group fell from 165 to 124 during the 12-month accounting period.
As previously reported in March 2024, Make Architects implemented approximately 15 percent staff layoffs in response to economic turbulence, a decision confirmed by practice founder Ken Shuttleworth at the time. The latest financial accounts highlight business risks associated with the political climate surrounding investment decisions and the significant slowdown in London office projects, which represents a key market segment for the firm.
The company's strategic report identifies several factors that contributed to the challenging financial year, including unfavorable global economic conditions, inflationary pressures, and planning delays that impacted project delivery across the United Kingdom. However, Make Architects has utilized its strong cash reserves throughout the accounting period and successfully reduced both variable and overhead costs to weather the difficult period.
Regional performance varied significantly, with workloads declining in Asia, Europe, Australia, and the UK, where fees dropped substantially from $13.8 million to $11 million. The only bright spot came from other international markets, where income jumped dramatically from $133,739 to $1.5 million, providing some relief to the overall financial picture.
Despite the financial challenges, the firm achieved a significant milestone in December when the High Court approved its redevelopment proposals for the former ITV Studios on London's South Bank. The court decision upheld former communities secretary Michael Gove's approval for the construction of the 25-story Thameside development. Construction work has now commenced on the $800 million building, known as 72 Upper Ground, which is backed by Japanese developer Mitsubishi Estate.
Looking toward the future, Make Architects is actively developing artificial intelligence capabilities to enhance creativity, streamline workflows, and improve service delivery, according to the directors' strategic report. The firm has also begun rebuilding its workforce, with staff numbers increasing since the end of 2024 as the company prepares to deliver key upcoming projects.
In terms of executive compensation, the highest-paid director received $686,373 in 2024, representing a marginal decrease from the previous year's $708,762. A company spokesperson emphasized the firm's resilience and forward-looking approach, stating: "2024 was a difficult financial year for many architecture practices – including Make – with unfavorable global economic conditions, inflationary pressure, and planning delays impacting the delivery of several projects across the UK. Despite the challenges, Make is now on an even keel, having recruited more people in recent months to deliver on key upcoming projects for the practice. We are optimistic for a stable year of growth ahead."
