Carter Jonas has seen its operating profit drop by more than 25%, primarily driven by the impact of economic conditions on the property market and inflationary pressures on its cost base.
Operating profit at the owner-run business fell to just under £15m in the 12 months to 30 April, from just under £20m in 2022. Its latest accounts, filed this week, cited competitive pressure, which in turn has been compounded by the deterioration in the market in the second half of its financial year – especially affecting agency – as well as rising costs.
Turnover rose by 4% during the year to £84.4m and gross profit climbed by 15% to £69m. However, administrative expenses increased by close to £9m to £69m. The company payroll rose from £37m to £41.7m. The number of professional staff went up from 602 to 657; while support staff rose from 105 to 124.
The average number of members of the LLP during the year was 98, up by one. They shared £12.4m in remuneration, down from £16.3m the previous year. A further £1.6m in profit was available for discretionary division among members, down from £2.7m.
Within this group, there were nine key decision-makers during the year, with an aggregate share of profit of £2.3m (2022: £4m). The member with the largest profit share entitlement was allocated £280,000 (2022: £513,000).
During the year, Carter Jonas bought Leeds-based real estate strategy business Tomorrow Advisory. Going forward, its focus will be on growing its London-based residential agency network and investing in staff to service new national contracts.
Richard Bruce succeeded Mark Granger as chief executive in September.
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