News

Commercial agents still smiling

News

Estates Gazette

01 July 1989

Residential agents’ profits may be going into a tailspin, but the commercial agencies are still climbing.

This week, Debenham Tewson & Chinnocks, the largest of the quoted ones, reported pre-tax profits of £8.98m, two-thirds more than last year’s, while Fletcher King increased its by nearly 40%, to £2.9m.

Both firms — who share a financial year-end of April 30 — say that the commercial market is continuing buoyant. “We have not seen any signs of slackening at all,” said Michael Sabey, deputy chairman of Fletcher King. He notes that consumers are taking a bit longer to make up their minds, “but this has not led to a decrease in the number of transactions.”

At DTC, chairman Richard Lay (pictured) points out that although the letting market in the City of London is slowing, investment activity is “very strong indeed”. And, while the heat has gone out of the retail market, it, too, is still very active.

“Although the current year has started well, our confidence is tempered by caution,” he says. “It would be foolhardy to think that the high rate of growth we’ve seen in property returns over the last two years will continue. Inevitably we’ll see a slowing down in the market generally.”

DTC are keen on Europe, and have set up a joint venture — Debenham Jean Thouard Zadelhoff — with four major practices in Belgium, France, Holland and West Germany. “We have to look at ourselves as being an economic business,” says Richard Lay. These are the first steps in creating a European practice.” The company is also opening an office in Holborn, and looking to expand into Scotland, Manchester and Bristol.

Fletcher King, however, is not going into Europe, nor is it currently thinking of acquiring any UK firms.

“We would love to, but while the stock market rates surveyors the way they do, it is unlikely that anyone would want to come in,” comments Michael Sabey.

Fletcher King’s earnings per share are up by 31% to 21.5p and the company will be paying a total dividend of 10.6p (7.25p) for the year. For its part, DTC’s total payment to shareholders will be 7p (5p).

Residential agents’ profits may be going into a tailspin, but the commercial agencies are still climbing. This week, Debenham Tewson & Chinnocks, the largest of the quoted ones, reported pre-tax profits of £8.98m, two-thirds more than last year’s, while Fletcher King increased its by nearly 40%, to £2.9m. Both firms — who share a financial year-end of April 30 — say that the commercial market is continuing buoyant. “We have not seen any signs of slackening at all,” said Michael Sabey, deputy chairman of Fletcher King. He notes that consumers are taking a bit longer to make up their minds, “but this has not led to a decrease in the number of transactions.” At DTC, chairman Richard Lay (pictured) points out that although the letting market in the City of London is slowing, investment activity is “very strong indeed”. And, while the heat has gone out of the retail market, it, too, is still very active. “Although the current year has started well, our confidence is tempered by caution,” he says. “It would be foolhardy to think that the high rate of growth we’ve seen in property returns over the last two years will continue. Inevitably we’ll see a slowing down in the market generally.” DTC are keen on Europe, and have set up a joint venture — Debenham Jean Thouard Zadelhoff — with four major practices in Belgium, France, Holland and West Germany. “We have to look at ourselves as being an economic business,” says Richard Lay. These are the first steps in creating a European practice.” The company is also opening an office in Holborn, and looking to expand into Scotland, Manchester and Bristol. Fletcher King, however, is not going into Europe, nor is it currently thinking of acquiring any UK firms. “We would love to, but while the stock market rates surveyors the way they do, it is unlikely that anyone would want to come in,” comments Michael Sabey. Fletcher King’s earnings per share are up by 31% to 21.5p and the company will be paying a total dividend of 10.6p (7.25p) for the year. For its part, DTC’s total payment to shareholders will be 7p (5p).