Record Results and 44% Increase in Pre-Tax Profits
DTZ Holdings PLC Reports Record Results and 44% Increase in Pre-Tax Profits
London Stock Exchange listed company DTZ Holdings PLC has announced its global results for the year ended 30 April 2006 which showed a 44% lift in pre tax profit to £29.7M on a 19% increase in turnover to £232.2M.
Commenting on the results overall, DTZ Chairman Tim Melville-Ross says that only a small number of real estate advisers have global reach, and offer the range and quality of service needed by the most demanding international clients.
“DTZ is already well placed in this regard. The Board intends to continue pursuing the strategy outlined in our statement so that DTZ is acknowledged as the best in the business,” said Mr Melville-Ross.
“Given the solid foundations we have laid, and the significant progress we have made this year around the world, the Board is confident that the Group will continue to perform successfully and profitably through varying market cycles in the future. The continued strong performance of our share price shows that shareholders have confidence in what we are doing, and we believe this latest set of results will further justify and underpin that confidence."
New Zealand CEO, Ross Pickett emphasised the significance of the global result and the improved performance in the Asia Pacific region.
“The parent company result is remarkably like the New Zealand performance. Our revenues were up by 17% and our profits more than doubled that of the previous year,” he said.
He also highlighted the financial strength of the group and its expansion and investment activity across the world. “Asia Pacific is very much part of this agenda and the investment in Australia, India, and the Asian countries will help the New Zealand operation achieve further growth objectives in the coming year."
Investment in Asia Pacific region to continue
DTZ continues to invest in Asia Pacific and the region’s results take into account some significant corporate acquisitions through the year and some substantial organic investment in building the business in countries such as India and Japan, while the results reflect only DTZ’s share of the profits in our associate business in China where we have also been recruiting heavily. Accordingly, the various strong performances, including from South East Asia post acquisition, were offset by our substantial revenue investment programme.
Asia Pacific activity highlights
- Increasing holding to a majority
interest in DTZ’s South East Asia business (headquartered
Singapore, with offices in Thailand, Malaysia and Indonesia)
- Acquiring the leading Sydney office agency business of Grosvenor Hickey Tindale Pty Ltd,
which has been merged into existing operations in Sydney
- Acquiring an industrial and property management team in Melbourne
- Development of Tokyo office
- Continued expansion in the Chinese associate business with the opening of offices in Wuhan
and Xian, bringing our mainland Chinese representation to 11 offices and 4,000 people
- Opening two more Indian offices in New Delhi and Mumbai.
Summary of global results for DTZ Holdings PLC
Profit before tax increased by 44% to £29.7 million
(2005: £20.6 million)
Turnover rose 19% to £232.1 million (2005: £194.4 million)
Earnings per share rose 53% to 37.9 pence (2005: 24.8 pence)
Strong progress in ongoing development of Group’s services worldwide, with particularly strong profit
growth in Continental Europe