British architecture firm Allies and Morrison has announced a significant decline in its financial performance, reporting a 31 percent drop in pre-tax profits alongside substantial decreases in both turnover and staff numbers. The London-based practice has been particularly impacted by a dramatic reduction in revenue from projects outside Europe, which fell by more than half during the reporting period.

The architectural firm, known for its work on major urban planning and building projects across the UK and internationally, has experienced one of its most challenging financial periods in recent years. The sharp decline in profits reflects broader struggles within the architecture industry, as firms grapple with economic uncertainties and shifting market conditions that have affected project pipelines and client spending.

The most striking aspect of Allies and Morrison's financial difficulties has been the collapse of its international revenue streams. Income from projects outside Europe plummeted by over 50 percent, highlighting the firm's vulnerability to global economic fluctuations and the challenges of maintaining overseas operations during a period of reduced international investment in major architectural projects.

As a result of the financial pressures, the firm has been forced to reduce its workforce, with staff numbers declining significantly. This reduction reflects the broader impact of the revenue shortfall on the company's operational capacity and its ability to maintain previous staffing levels during the downturn.

The financial results underscore the challenges facing mid-to-large scale architecture practices in the current economic climate, particularly those with significant international exposure. Allies and Morrison's experience may serve as an indicator of broader trends affecting the UK architecture sector as firms navigate reduced project opportunities and tightened budgets across both domestic and international markets.