King Sturge reported a 79% rise in profits for the year to April, despite seeing a slight fall in turnover.
The agent reported distributable profits of £34.8m, compared with £19.4m in 2009. Turnover was £153m, a marginal drop on the £158m achieved last year.
The LLP has become the latest of the non-listed agents to report a healthy increase in profits. Earlier this month, Knight Frank posted a 168% rise, while GVA Grimley reported a 32% hike (see table).
Average distributable earnings per equity partner at King Sturge were £405,000, with every member of staff also receiving a share of a £10m bonus pool. All bonuses will be paid out by the end of January.
Last year, 90 equity partners received an average of £216,000, down from £496,000 in 2008 and £615,000 in 2007.
Joint senior partners Richard Batten and Chris Ireland said that, unlike the past two years, the firm had not retained a slice of its profits as a cushion against further falls in the market.
Ireland said that every division in the group had been profitable this year.
“We’re pleased with the overall results and how broadly spread it was,” he said. “We were flat on turnover, so the hike in profits came through on the back of cost savings – staffing, occupancy and the running costs of the business.”
He added: “Despite ongoing subdued market conditions, these results demonstrate that King Sturge is firmly on the front foot.”
Batten said that, with pressure on fees, the LLP was looking to bring in individuals and teams to grow its UK business. He said: “We’ve realised that, where we have a high degree of specialisation, we can hold our fee levels rather than be in a battle with everyone else.”
The pair added that, despite having to place King Sturge’s Spanish business into administration in late 2008, it was determined to grow its presence on the continent, with France and Germany its principal targets. Overseas earnings accounted for £20m of this year’s turnover.
| At a glance | ||
| £m | Turnover 2010 (2009) | Profit 2010 (2009) |
| King Sturge | 153 (158) | 34.8 (19.4) |
| Knight Frank | 288 (256) | 58.4 (21.8) |
| GVA Grimley | 130 (137) | 5.7 (4.3) |
damian.wild@estatesgazette.com
