News

DTZ profits surge 67% as investment powers on

News

Robert Gibson

09 July 2005

Investment agency more than doubles last year’s work to £6.2bn

DTZ, buoyed by the strength of the investment market, has recorded a 67.4% hike in profits to £18.5m for the year to April.

Chief executive Mark Struckett said: “Our UK investment agency teams have had a particularly strong year and have increased market share. During the year to April, we advised on sales and acquisitions worth around £6.2bn, up from £3bn last year.”

Overall, the firm exceeded expectations with a 17% increase in turnover to £194.4m. Earnings before interest, tax, depreciation and amortisation hit a record high of £24.3m, from £17m in 2004, although there was a loss of £4.4m in its direct international business (see above). UK turnover grew by 17.3% or £21.3m to £125.8m, while overseas turnover was up by 16% to £50.1m.

Despite subdued occupier demand, DTZ’s UK business space leasing teams let or acquired 9.6m sq ft of offices and 8.5m sq ft of industrial space. The investment management team also performed strongly, and now manages around £1.75bn of assets — up from £1.2bn in 2004.

The relatively new corporate finance team has established a solid base with a 32% rise in turnover to £2.9m, said Struckett, adding that the one “disappointment” was consulting. “Parts of our business were affected in the second half by a downturn in government markets in the run-up to the general election.”

● DTZ figures in the league table (p45) are for the year to October 2004.

Overseas performance

The group’s international business dragged down profits, with a loss of £743,000 (-£1.99m: 2004). Operating profits revealed a loss of £4.4m but a £3.6m profit from shares in associated undertakings boosted the figures. Turnover came in at £50m, up from £43.1m in 2004.

France put in the strongest performance in continental Europe with a profit margin of around 24%, while growing turnover by a quarter. Despite winning some major new instructions and a 50% rise in turnover, the German business continued to make a loss.

DTZ re-opened its Bahrain office (which was closed when?) in September, and since then has generated £250m of investment activity from it in Europe as well as some major domestic letting instructions.

Investment agency more than doubles last year’s work to £6.2bn DTZ, buoyed by the strength of the investment market, has recorded a 67.4% hike in profits to £18.5m for the year to April. Chief executive Mark Struckett said: “Our UK investment agency teams have had a particularly strong year and have increased market share. During the year to April, we advised on sales and acquisitions worth around £6.2bn, up from £3bn last year.” Overall, the firm exceeded expectations with a 17% increase in turnover to £194.4m. Earnings before interest, tax, depreciation and amortisation hit a record high of £24.3m, from £17m in 2004, although there was a loss of £4.4m in its direct international business (see above). UK turnover grew by 17.3% or £21.3m to £125.8m, while overseas turnover was up by 16% to £50.1m. Despite subdued occupier demand, DTZ’s UK business space leasing teams let or acquired 9.6m sq ft of offices and 8.5m sq ft of industrial space. The investment management team also performed strongly, and now manages around £1.75bn of assets — up from £1.2bn in 2004. The relatively new corporate finance team has established a solid base with a 32% rise in turnover to £2.9m, said Struckett, adding that the one “disappointment” was consulting. “Parts of our business were affected in the second half by a downturn in government markets in the run-up to the general election.” ● DTZ figures in the league table (p45) are for the year to October 2004. Overseas performance The group’s international business dragged down profits, with a loss of £743,000 (-£1.99m: 2004). Operating profits revealed a loss of £4.4m but a £3.6m profit from shares in associated undertakings boosted the figures. Turnover came in at £50m, up from £43.1m in 2004. France put in the strongest performance in continental Europe with a profit margin of around 24%, while growing turnover by a quarter. Despite winning some major new instructions and a 50% rise in turnover, the German business continued to make a loss. DTZ re-opened its Bahrain office (which was closed when?) in September, and since then has generated £250m of investment activity from it in Europe as well as some major domestic letting instructions.