KHR Architecture's annual results reflect investment in new skills and business areas

KHR Architecture comes out of 2020 with a round zero on the bottom line. On the other hand, the company has been strengthened with new competencies and business areas that should increase revenue and earnings in the future.

Since 2019, turnover has increased from 54 to 63 million and 11 full-time positions have been added. According to CEO Lars Kragh, the increase in staff is part of the reason why the annual result ends up with a modest profit of DKK 48,000 after tax, despite the increased turnover. The result also covers a one-off, larger loss on a school building settlement from 2011.

"We have deliberately invested in new business areas and competences, and this has a cost on the bottom line in the short term. However, we can already feel the positive effect both internally and in terms of project intake, and I am confident that in the long term we will also be able to reap our investment on the bottom line," says CEO and partner Lars Kragh. "That said, the bottom line is never our primary focus. Of course we need to make money, but KHR is an independent, partner-owned architecture firm where we all agree that our main mission is to create great architecture that makes a positive difference for users and society. At the same time, we prioritise a good working environment and good working conditions for our employees, which are crucial for good architecture to take shape."

"Overall, we have strengthened two areas that have cost in 2020: we have professionalised our business operations by training and hiring in IT, HR, administration and communications. That exercise will soon be completed with a new head of design to ensure we make the best use of our human and professional resources. Secondly, we have broadened our business focus to new areas and target groups, so that we have a healthier balance between public and private clients and can offer analysis and advice to our clients from the very initial stage prior to a purchase, new build or renovation. That is why we have invested in building a dedicated unit for building consultancy and at the same time hired a capacity in housing. Corona has of course also played a role at KHR and been a costly factor in our operations, but the order book has been surprisingly busy despite the special circumstances. We have plenty of exciting projects in the pipeline and a strong team to deliver them, so our 75th year looks promising in every way."

Caption: The four partners of KHR Architecture in front of the Cannon Boathouses, where KHR has had offices since 2006. From left to right are CEO Lars Kragh, Technical Director Henrik Danielsen, Creative Director Mikkel Beedholm and Creative Director Janina Zerbe.About KHR Architecture:KHR Architecture is 75 years old this year and has led a number of award-winning and acclaimed projects such as Copenhagen Metro, production and administration building for Fiberline, Bang & Olufsen headquarters and University of Copenhagen on Amager. A new circle of partners ensures that KHR is growing rapidly these years and entering new markets and business areas. The architectural firm is based in the Kanonbådshallerne on Holmen and has just over 100 employees.