Dtz First Half Results Send Traders to the Doors

August 29, 2008

Traders made for the doors in DTZ Holdings, 23-1/4 pence lower at 272-3/4, after the property consultant disclosed a 24% drop in half-yearly pretax profits and cautioned that full-year results will reflect the challenging conditions it faces. In its results for the six months to 31 October, DTZ saw revenue, excluding acquisitions, climb 23% to £157m. Adjusted pre-tax profits, excluding sales and purchases, were flat at £12.5m, which was about £2 million below analysts expectations.

Chief executive Mark Struckett said: ‘If you look at market conditions, there is a lot of uncertainty out there, and we believe 2008 will be a difficult year, especially for the investment market, where we are seeing very low levels of activity.’ The interim dividend was unchanged at 3.5p, and Struckett said he did not expect dividend forecasts to be reduced, but adjusted earnings per share fell 24% to 11.3p. Struckett said that based on early conversations with analysts, he believed they would be pencilling in a ‘small reduction’ in estimated full-year pre tax profits.

Tim Melville Ross, DTZ chairman, said: “Recent events and investor uncertainty concerning the economic outlook and the potential impact on the property market have caused shares in property and property related companies to fall considerably. The group has inevitably been affected by this uncertainty, and we expect the full year results to reflect these challenging conditions.

“We are confident that our strategy to broaden both the geographical spread of our business and the services we are able to offer gives some valuable protection to the group in difficult markets.”

In July this year we successfully completed the acquisition of the business and assets of Donaldsons creating not only a pre-eminent retail property adviser but also consolidating our strength in other key disciplines, including valuations and property management, throughout EMEA. The close cultural alignment between the two businesses has ensured that the integration of Donaldsons into the group has progressed very well. Client reaction to this development has been overwhelmingly positive.

Commercial Property

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