Colliers CRE posts 33% drop in 2008 revenues, to cut 70 jobs

AIM-listed real estate consultancy group Colliers CRE saw its revenues fall by a third last year on the back of a deteriorating commercial property market, in particular in the UK, Ireland and Spain.

In a trading update for its financial year ended 31 December 2008, the broker said revenues fell by 33% to £78 mln (EUR 86 mln) compared to £117 mln a year before. In Spain, revenues plunged by as much as 87% to £2 mln, from £15 mln a year before, while in the UK Colliers reported a 25% drop to £74 mln, from £99 mln a year before.

'In the light of market conditions, we have taken rapid and decisive action to address our cost base. At the time of the half year results, we advised that we had reduced costs by an annualised £10 mln. This figure is now more than £15 mln achieved through headcount reduction and overhead savings,' the company said.

It added that a further 70 potentially redundant positions have been identified. As a result of these measures, the group's headcount will be reduced to 750. Its net debt stands at £13 mln compared with £16 mln at end June.

The property services firm is slighly positive about forecasts for 2009 and said it expects to see 'a modest pick-up in investment activity from the second quarter onwards.'

Colliers CRE chairman Sir John Ritblat said: 'It's not the decline in property pricing itself that adversely influences our revenue levels, it's the fall off in activity, whether in capital or corporate markets. However, as surely as night follows day, activity levels will recover and this, combined with the diversity of our offer, the quality of our people and the decisive action we have taken on costs, means the Group is very well placed going forward.'