Accounts made public on Friday (12 December) at Companies House show the London-based practice’s finances for the year ending 31 December 2024, with pre-tax losses mounting up from minus £720,000 in December 2023 to minus £1.8 million last year.
Turnover fell by almost two thirds to £6.4 million in December 2024 from £17.1 million in December 2023. In comparison, the practice made a turnover of £20.5 million in 2022, when it reported a pre-tax profit of £8.8 million.
In the UK, turnover dropped by 85 per cent last year to under £150,000, the filings show.
Turnover in Africa, where the firm has an office in Accra, Ghana, fell from £1.4 million in 2023 to £680,000 in 2024. In the Middle East the firm reported a turnover of £2.1 million in 2024, significantly down from £13 million the previous year.
Adjaye Associates recorded small rises in income from two regions, including turnover in Australasia, which rose from £994,00 in 2023 to £2 million in 2024, and in the Americas, where there was a slight jump in turnover from £641,00o to £715,000 in the 12 months to 31 December 2024.
The practice’s average headcount dropped from 85 in 2023 to just 47 last year, with the number of architects on the payroll almost halving to 32.
Adjaye Associates described 2024 as ‘a challenging year for the UK construction sector’ and said in a strategic statement in the accounts that ‘high inflation, tighter budgets and delays in public funding created a tougher environment for design and architecture practices reliant on cultural and civic commissions’.
The practice added that a reduction in revenue was a key factor in the pre-tax loss, noting that gross margin had been ‘maintained’ at 45 per cent.
In July 2023, practice founder David Adjaye was at the centre of a Financial Times investigation into claims of sexual misconduct and abuse against several female employees. At the time, Adjaye strongly denied accusations of sexual harassment and assault but issued an apology for relationships which had ‘blurred the boundaries between my professional and personal lives’.
In September that year, the AJ reported that clients had cancelled a string of projects in the wake of the allegations and on further claims of a toxic culture permeating Adjaye Associates.
In March 2024, the practice outlined a ‘fundamental change’ to its leadership, which handed day-to-day control to Lucy Tilley, Pascale Sablan and Kofi Bio in London, New York and Accra respectively.
Adjaye himself remains chair of the practice’s design and excellence board and executive board, the practice said in a governance update on its website, which also adds Osman Chaudhry, Ajdaye Associates’ chief financial officer, to the executive board in charge of daily operations.
The practice said in the governance update that an ethics and policy committee now ‘oversees all serious grievance processes at the firm’, plus three administrative boards which oversee the practice globally. They are an executive board, design board, and administration board.
The same update said: ‘At the start of 2024, we engaged a distinguished King’s Counsel barrister specialising in employment law to conduct an independent review of our workplace culture. The findings revealed no significant issues in any of our studios. Nevertheless, we proactively implemented a thorough restructuring of our business governance to enhance the transparency of our daily operations.’
A director’s comment signed off by Adjaye in the latest accounts said the practice would ‘continue to place its people at the centre of its future development’.
He continued: ‘We are proud of our inclusive culture and will continue to invest in programmes that enhance skills, broaden perspectives and encourage creative confidence.
‘Although market conditions remain mixed, we are confident in the practice’s direction and our ability to translate our strengthened foundations into long-term growth. Our priority is to maintain design excellence, support the wellbeing and development of our staff and position the practice for a return to sustainable profitability in 2026.’
Adjaye Associates has been approached for comment.