David Chipperfield Architects has experienced a decline in revenue and profit as several major projects encountered significant delays, according to the firm's annual report and accounts for the year ending December 31, 2024. The prestigious architecture practice, which is celebrating its 40th anniversary this year, saw its fee income drop to $14.8 million while profits fell from $2.1 million to $1.7 million.

The company's workforce also contracted during this period, shrinking from 121 employees in 2023 to 109 in the most recent accounting period. Of these remaining employees, 77 are classified as architectural staff. The firm experienced declining workloads across multiple regions, with UK operations dropping from $2.9 million to $2.2 million, European revenue falling from $1.5 million to $931,000, and income from the rest of the world plummeting dramatically from $791,000 to just $101,000.

Several high-profile projects in the firm's portfolio have failed to advance as planned, contributing to the revenue decline. These include the half-built and now mothballed $233 million Elbtower in Hamburg, the Dunard Centre in Edinburgh, and the controversial proposed Chinese Embassy in east London. The Chinese Embassy project has faced particular scrutiny and delays in the approval process.

In August of last year, the architects resubmitted their controversial proposals for the embassy near the Tower of London. Two months later, the project was called in by then Communities Secretary Angela Rayner, and in February this year, it became the subject of a public inquiry. While a final decision was originally scheduled for early September, the process was delayed to allow consideration of additional information received over the summer. The plans are now expected to be determined next month by Rayner's successor, Steve Reed.

The Dunard Centre in Edinburgh has also experienced significant setbacks. In March, reports emerged that the opening of Chipperfield's 1,000-seat concert venue had been delayed until 2029 following a change in contractor. Edinburgh's first new concert hall in a century was originally expected to open this year. However, according to reports in The Herald, contractor Sir Robert McAlpine, which completed preconstruction work last year, was not retained for the main building phase of the project.

Despite challenges in other regions, the company found success in the Middle East, where fee income increased from $3.5 million to $4.5 million in 2024. This growth in the Middle Eastern market helped offset some of the losses experienced elsewhere. Additionally, fees per architect increased during the reporting period, reaching $192,000, up from $185,000 in 2023.

The company's supporting statement indicated that a leadership shake-up implemented in mid-2023 continued to produce positive results, leading to another profitable year that was broadly in line with expectations. The statement noted that while turnover decreased due to a significant project stalling, the company was able to adjust costs effectively, assisted by an internal budgetary control system and process.

Globally, the firm acknowledged that existing international projects of varying scale and scope presented challenges, but the company ensured the continuation of fees throughout these difficulties. Interestingly, the salary of the highest-paid director, who was not named in the report, decreased from $243,323 to $196,273 during the reporting period.

One bright spot during this challenging period was the commencement of construction on the overhaul of the historic Jenners building on Princes Street in Edinburgh, a collaborative project between 3DReid and David Chipperfield Architects. This project began in 2024 during the reporting period, providing some positive momentum for the firm's portfolio of work in Scotland's capital city.