Top firms leave the rest behind

News

24 January 1998

But the improvement has not been universal; while Savills romped away with a 37% increase in earnings, and four firms raked in more than £5m in profits each, almost half of the EG100 companies each made profits of less than £500,000.

Similarly, only half of the firms in the survey saw a rise in fee levels during 1997, although surveyors’ salaries increased by an average of 8%.

The widening gulf

The survey shows that the gulf between the top firms and the rest is widening – the top nine firms captured 47% of the EG100’s total UK earnings. And for five of the top firms, overseas earnings now make a substantial contribution to the balance sheet, in some cases dwarfing UK income.

But there is still a place in the market for the smaller, more specialised firms, many of which were among the most profitable in the survey. Far from being discouraged by the dominance of the big firms, a massive 84% of all the firms expressed confidence in the future and in their ability to improve on their 1996/97 financial performance.

Greater transparency

Despite the reluctance with which many senior partners divulged their firms’ financial data last year, the trend towards greater transparency is firmly established. Only one of the large practices – Healey & Baker – again refused to reveal its financial information and was excluded from the ranking.

This year’s much more detailed survey of the property profession will firmly establish the annual EG100 as the benchmark for the commercial surveying sector as well as a valuable tool for the profession and its clients to judge the strengths and weaknesses of the leading firms.

As the first in a three-part special analysis of the profession, Spotlight on Surveyors, the EG100 touches on issues that will be investigated more fully in the coming weeks: the difficulties of recruiting top-quality staff, the globalisation of major players and the loss of market share to rival professional advisers.

The second annual EG100 league table, published in this week’s Analysis section (pp 72-80) reveals a marked improvement in the financial performance of the UK’s leading firms of chartered surveyors. Figures for the last financial year show that surveyors are at last seeing the benefits of improving market conditions. The total UK turnover for the leading 100 firms is £936m – up 21% on the 1996 survey. But the improvement has not been universal; while Savills romped away with a 37% increase in earnings, and four firms raked in more than £5m in profits each, almost half of the EG100 companies each made profits of less than £500,000. Similarly, only half of the firms in the survey saw a rise in fee levels during 1997, although surveyors’ salaries increased by an average of 8%. The widening gulf The survey shows that the gulf between the top firms and the rest is widening – the top nine firms captured 47% of the EG100’s total UK earnings. And for five of the top firms, overseas earnings now make a substantial contribution to the balance sheet, in some cases dwarfing UK income. But there is still a place in the market for the smaller, more specialised firms, many of which were among the most profitable in the survey. Far from being discouraged by the dominance of the big firms, a massive 84% of all the firms expressed confidence in the future and in their ability to improve on their 1996/97 financial performance. Greater transparency Despite the reluctance with which many senior partners divulged their firms’ financial data last year, the trend towards greater transparency is firmly established. Only one of the large practices – Healey & Baker – again refused to reveal its financial information and was excluded from the ranking. This year’s much more detailed survey of the property profession will firmly establish the annual EG100 as the benchmark for the commercial surveying sector as well as a valuable tool for the profession and its clients to judge the strengths and weaknesses of the leading firms. As the first in a three-part special analysis of the profession, Spotlight on Surveyors, the EG100 touches on issues that will be investigated more fully in the coming weeks: the difficulties of recruiting top-quality staff, the globalisation of major players and the loss of market share to rival professional advisers.