Insignia’s European activities contributed to strong second quarter results, boosting a weak performance from its US parent Insignia Financial Group.
Insignia’s European operations produced EBITDA up 140%, from $2.4m to $5.8m. Alan Froggatt, chief executive of Insignia’s European operations, said: “We were more cautious at the beginning of the year and have been proved right. We expect the occupational market to remain subdued, but the investment market is looking a bit stronger – lower interest rates are encouraging debt-driven buyers.”
He added: “We expect market conditions to become tighter over the next six months as global markets continue to slow, but believe our competitive position is still strengthening.”
Revenues across the whole group for the three months to the end of June fell 12%, from $228.2m to $201m. The US-quoted property broker recorded a net loss of $1.45m, compared with $811,000 in the same quarter last year. Andrew Farkas, Insignia chairman said: “At the start of the year we believed 2001’s performance would not reach the unprecendented levels of 2000 but that it would be a solid year. So we are pleased with the results for the first half of the year, particularly in light of the continuing economic slowdown.”
