CANDY & Candy, the interior design and property development firm owned by Nick and Christian Candy, slipped to a £4.4m loss in 2010, its accounts showed yesterday.
The firm fell to a £4.4m pre-tax loss in the year to the end of June last year from a £2.2m profit in 2009 after sales plummeted to £8.3m from £18.2m a year earlier, according to accounts filed at Companies House.
The firm blamed a lack of new business for the decline.
“The lack of liquidity in the construction finance market has affected the division’s clients and limited the number of new business opportunities, which will in turn affect the division prospects,” its statement said.
The Candy brothers lost contracts to develop expensive projects such as Chelsea Barracks and NoHo square north of Oxford Street that had boosted revenues in 2009. The plans for Chelsea Barracks were abandoned by its Qatari developer after opposition from Prince Charles among others.
High costs and administrative expenses were also a factor, as the firm paid out a combined £12.3m last year compared with £16.6m in 2009. Candy & Candy said it took steps to cut costs by reducing headcount. The brothers also sold their large London headquarters in February.