The strong investment market for UK property helped DTZ deliver a steep rise in half-year pre-tax profits this morning.
The quoted agent reported a 68% increase in pre-tax profit for the six months to October 31 to £6.7m, from £4m the same period in 2003.
Turnover increased by 18% to £86.7m, from £73.5m.
The company also said the robustness of current market conditions meant it was likely to exceed analysts’ full-year profit forecasts of £14m-£15m.
The runaway investment market helped push UK agency and investment commissions up 56% to £24.9m, compared to £15.9m in the first half of 2003.
Turnover from the company’s UK operations rose 20% to £67.7m, from £56.4m, while international turnover increased 12% to £19m, from £17m, with France and China being the strongest performers.
In China, DTZ holdings has a 30% shareholding in a local operation which employs over 3,000 employees in nine offices on the mainland.
The company’s German business, which has recorded losses in recent years, has shown signs of recovery, with the award of the management contract for the Sony Centre in Berlin.
Expenses associated with the contract had been all accounted for in the first half results.
DTZ chairman Tim Melville-Ross said that, while global economic growth is expected to slow in 2005, it was reasonable to expect an up-lift in occupational markets in some areas given the “inherent lag” between economic activity and property markets.
“Given the quality of property as an investment, the frequent scarcity of stock, and the high levels of capital allocations to real estate, we expect to see a continued good level of activity investment as well,” Melville-Ross said.
References: EGi News 19/01/05
