Herring Baker Harris is battening down the hatches for another year after losing £430,000 (against a £1.36m profit) in the 12 months to the end of January.
Shutting up shop in the US notched up costs of £1.2m. Now, a new tie-up with West Coast-based Marcus & Millichap is intending to develop new US business, but has yet to turn in any fee income. In the UK and Europe operating profits touched £920,000 and, says chairman Nicholas Owen: “We made solid but not dramatic progress.”
After considering beefing up its regional representation, HBH is again concentrating on its core businesses: rating, agency and investment. More than two-thirds of fee income is generated from professional work. Rent reviews are increasingly hard to come by, but the cyclical ratings business has held up – raking in £5.7m – on appeals to the 1990 revaluation.
Investment services have turned in £2.1m, against £1.7m. “Our stated policy a year ago was to expand our investment business – results are now starting to show through,” says finance director Jeremy Pratt. Owen adds: “We are trying to build up our central London capability.” Aside from advising on the Woolgate House, EC2, deal, HBH failed to make a big killing from the activity in the City investment market.
HBH’s senior management has been in transition since the abrupt departure of Peter Farrington last spring. Jeremy Pratt came on board as finance director and joint MD with Michael Baker, who is also in charge of business development. Other key personnel have left and new ones arrived. Owen says: “The people we have brought in are closer to the ground.”
