Shares in DTZ plunged this morning after the company revealed it would make a greater loss than previously feared in the year to 30 April.
The company said it will have to implement even deeper cost cutting than previously anticipated to try to combat the losses.
“Since December, as illustrated by the steep decline in stock markets and economies across the world, there has been a significant ongoing deterioration in trading conditions.
“The board’s current view is that the group will report a loss before taxation and exceptional items for the year to 30 April 2009 significantly greater than previously anticipated,” DTZ said in a statement to the Stock Exchange.
The announcement triggered a 24% fall in the share price to 30p.
The company, which has slashed jobs and redundancy pay for those leaving, is now likely to shed even more jobs.
“In our half-year results, we reported that restructuring and cost cutting measures already put in place would provide annualised cost savings of £15m for the year ending 30 April 2009, with further savings of £15m anticipated for the year ending 30 April 2010,” DTZ said.
“The actions to achieve these savings have now been implemented in an accelerated timeframe. In light of the ongoing difficult market conditions outlined above, the group is already in advanced stages of identifying additional cost savings and it is anticipated these will deliver at least a further £20m of savings to those mentioned above during the 2009-10 financial year.”
“We are also carrying out a review of the carrying value of goodwill and intangibles of previously acquired businesses and it is likely that further significant non-cash impairment charges will be reported in the current financial year.”
The company, which was forced to raise £48m in a rescue equity raising in December to ensure that lender RBS did not put it into administration, said that it was continuing with a review of its business, and would close down underperforming units. It has closed its Portuguese and Austrian offices so far this year.
