DTZ Asia business strong as UK revenue declines
DTZ today reported a pre-tax loss before exceptional items of £0.6m for the year to 30 April, compared with a profit on the same basis of £3.0m the previous year. It said it was disappointed with the results but noted that the second half of its financial year had been stronger, and that action taken during H2 had built momentum leading to a full-year performance ahead of revised market expectations.
DTZ said that “varying trading conditions” across its group activities had reduced revenue to £341.3m from £356m the previous year. The group, which is currently the subject of takeover talks, said net debt at the end of April had been cut to £47.5m from £80.1m at the end of October 2010.
Lower levels of activity in the UK led to a fall in revenue to £128.3m from £145.7m the previous year, with pre-tax profit before exceptionals declining to £3.1m from £8.7m. DTZ’s Asia-Pacific operations performed well, with revenue up 8% to £106.3m and a pre-tax profit before exceptionals of £8.8m (£8.7m). The CEMEA business returned to a profit of £2.4m from the previous year’s £3.3m loss. The investment and asset management operations grew strongly during the year with revenues up 18.8% to £16.4m from £13.8m.
Group chief executive Paul Idzik said group-revenue per director had increased 13.5%, “reflecting the further improvements to our cost structure, investment in talent, and the continued strengthening of client relationships across the group”.
“Reversing the trend of revenue decline and achieving profitable organic growth now have to happen for DTZ to deliver improved financial performance. While the prevailing mood remains one of caution, I believe the group is on the right path and am confident we will achieve this goal,” he added.
