Published 28 July 2009
DTZ Holdings plc, the UK-listed parent of the international DTZ real estate consultancy, dived to a £75 million loss in the year to April. The UK was the only area which made a profit.
The group has gone through a period of upheaval, placing a questionmark on chairman Tim Melville-Ross’s claim that it had taken decisive steps to adapt the business – “creating a business which will emerge competitively stronger”.
Revenue fell 18.4% to £364 million, the operating return before exceptional items went from a £16.4 million profit to a £33 million loss. Exceptional items reduced the 2009 return by £44.6 million (£15 million in 2008), taking the bottom line to a £75 million loss (£8 million profit in 2008). The 2009 exceptionals comprised £17.3 million of restructuring & redundancy costs and a £27.3 million non-cash impairment charge relating primarily to the sale of the group’s 50% interest in DTZ Rockwood in the US.
DTZ had a big clearout at the top – its group chief executive of 15 years left in November, replaced by former Barclays Plc chief operating officer Paul Idzik. 2 non-executive directors resigned and 3 executive directors were replaced, 2 of those staying on in senior positions.
Mr Melville-Ross said: “The ‘new’ DTZ will contain all of the familiar characteristics of client focus & creativity, based on a lean, global platform capable of transferring the best practices of one geography or skill set to any other within the organisation. I am confident that these measures will underpin the future prosperity of the group.”
And Mr Idzik commented: “Since January, we have taken aggressive action to reduce operating costs, rationalise headcount and enhance the discipline within our budgeting, marketing & reporting processes. We are transitioning our divisions to operate as united businesses in order to accelerate the development of specialised skills & the delivery of a globally joined-up product for clients.
“These changes, coupled with the group’s strengthened financial position, will ensure that DTZ emerges from this ongoing process of change more ‘match-fit’ & competitive, and well poised to enjoy the growth opportunities that will return as markets recover.”
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Attribution: Company release & accounts, story written by Bob Dey for the Bob Dey Property Report.