Cushman & Wakefield has delivered a net profit of $8.2m in the third quarter – three times the $2.3m profit made in the same quarter last year.
In a strong set of results, the property services firm revealed a 22% increase in revenue to $518.8m – the eighth consecutive quarter of double-digit growth.
Earnings before interest, taxes, depreciation and amortisation at the world’s third-largest property firm, which is 72%-owned by Exor, the listed investment vehicle of the billionaire Agnelli family, were up 33% to $33.1m.
Europe showed the biggest improvement, increasing revenue by 46% to $112.1m. Asia Pacific revenue increased 37% to $34.6m and in the Americas revenue was up 15% to $372.1m.
Chief executive Glenn Rufrano, who took over as chief executive in March 2010, said: “We experienced a year-over-year increase in gross revenue in all regions, and every service line, with the most significant increase on a percentage basis occurring in EMEA, followed by Asia Pacific and the Americas – all in double digits on a percentage basis.
“For the year-to-date period, we improved our performance over the prior year, and drove growth in EBITDA of approximately 83%.”
He said this positioned the firm “very well as we head toward the close of the fourth quarter, historically the firm’s strongest on a seasonal basis”.
“C&W continues to benefit from its focus and leadership position in major markets, which have experienced a more robust recovery.
“These strong operating results have driven cash flow and debt reduction, positioning the firm very well to pursue its long-term growth strategy and enhance our service offering to clients worldwide.
“We remain mindful of global and economic headwinds, but we are in a strong competitive position, with low leverage and a solid balance sheet, which is enabling us to continue to gain market share and invest in growth.”
For the first nine months of the year C&W increased revenue by 19% to $1.4bn and EBITDA by 83% to $41.8m.
The net loss was cut by 13% to $19.4m which was because of amortisation of goodwill arising from Exor’s purchase of a majority stake in the firm.
Without this non-cash charge of more than $30m, Cushman would be in profit. Its net debt is $95m, which comprises $175m of debt and $80m cash.
bridget.o’connell@estatesgazette.com
