DTZ books pre-tax loss, but meets cost-cutting targets

Real estate adviser DTZ posted a full-year pre-tax loss of £35.1 mln (EUR 40.6 mln) in the year to April 2009 following restructuring costs and an 18.4% decline in revenue to £364.1 mln. However, the company has substantially shored up its balance sheet through an additional credit facility of up to £15 mln and said it had also met its cost-cutting targets.

Annualised cost savings generated over £30 mln, the company said, while equity raising completed in January 2009 generated gross proceeds of £48.7 mln.

The property services firm said it had also made an exceptional charge of £44.6 mln, taking its full-year reported loss to £79.7 mln compared to a 2008 profit of £5.6 mln. The higher than expected one-off charge comprises £17.3 mln of restructuring and redundancy costs and a non-cash impairment charge of £27.3 mln stemming from the sale of DTZ’s 50% stake in US property services business DTZ Rockwood.

Paul Idzik, DTZ’s Group Chief Executive, said: ' The changing economic landscape has meant that this year has been a period of adjustment and adaptation, not just to ensure that we are better placed to deal with the current industry-wide reality, but also to create a more stable platform for future growth. Difficult decisions have had to be taken, but, throughout, the Group’s future has been the guiding factor.'

‘Since January, we have taken aggressive action to reduce operating costs, rationalise headcount and enhance the discipline within our budgeting, marketing and reporting processes. We are transitioning our divisions to operate as united businesses in order to accelerate the development of specialised skills and 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’ and competitive, and well poised to enjoy the growth opportunities that will return as markets recover.’