Commercial property consultancy DTZ reported an £80m pre-tax loss at its full-year results, reflecting depressed conditions across global property markets, and a substantial restructuring undertaken by its new management team, led by chief executive Paul Idzik. But its financial position has been strengthened by a £15m credit facility from its largest shareholder, SGP.
Exceptional charges of £44.6m included a £27m impairment from the sale of the group's interest in US advisor DTZ Rockwood, plus restructuring and redundancy costs. Global revenues fell 18 per cent to £364m as property markets contracted, and the dividend has been suspended.
A successful £48.7m equity raise in January, plus the additional £15m credit facility from SGP, has aided the restructuring of the group's banking facilities and financial covenants. Allowing for £38m of cash on the balance sheet, gearing is now 68 per cent. Cost savings of £30m were made and a further £20m is targeted.
The transactional side of the group's activities were the hardest hit, but the professional services division recorded an 8 per cent increase in revenues. The strongest revenue growth was in the Asia-Pacific region.
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DATE: 27 Jun 2008
