Cushman & Wakefield is preparing to pay its first dividend since the Agnelli family bought into the global property services firm five years ago.
The firm’s new EMEA chief executive, Carlo Barel di Sant’Albano, said paying a dividend to the firm’s shareholders – which comprise the Agnelli family’s Exor vehicle, with a 71.5% stake, and C&W management and employees, with the remaining 28.5% holding – was something that was “on his mind”.
The former Credit Suisse investment banker, who is also C&W’s global chairman, said: “Exor has never taken out a dividend in the five years since it invested, primarily because the business required investment.
“Exor is not asking for it, but as every company matures it is important to provide dividends to shareholders – it is just a discipline – another step in running a business.”
He added: “It is something that is on my mind. The timing is not exact at this point in time, but it is in the one-year plan.” However, he said that any payment would be small because the objective is to continue to invest in the business.
The €7bn company, controlled by the Italian Agnelli family, completed its purchase of the C&W stake from the Rockefeller Group in March 2007.
Sant’Albano made the comments as the firm posted an improved second-quarter performance after a sluggish start to the year drove it to a first-half loss of $17.2m (£10.9m) – almost double the same time last year.
However, in the second quarter the firm delivered net income of $4.3m – an increase of $2.5m from $1.8m at the same time last year. EBITDA increased by nearly a quarter to $34.1m and revenue was largely flat at $503.7m.
C&W blamed the half-year loss on a decrease in commission and service fee revenue of 3.6% to $678.2m and an increase in costs. These caused EBITDA to drop to $18.2m from $32.2m in the first half of last year.
Sant’Albano said that the net income loss was usual for the first six months of the year, ahead of the seasonally stronger second half, especially with continued heavy investment in global recruitment.
bridget.o’connell@estatesgazette.com
