AUSTRALIAN engineering giant UGL announced yesterday it plans to split its property services business DTZ from its engineering wing, less than two years after buying the British property name.
The company, which has seen shares slump by around 32 per cent this year, said it plans to list DTZ as a separate company on the Australian Securities Exchange following a demerger in June 2015 to provide an “optimal corporate structure for both businesses”.
UGL chairman Trevor Rowe said: “We believe a demerger will enhance shareholder value over the short and long term and prove beneficial to our clients and our people.”
The announcement came as UGL reported a steep fall in net profit after tax to A$36.5m (£21.6m) in the year to 30 June compared with A$135.4m the same period last year.
The group said profits were weighed down by “a slowdown in capital investment across the Australian resources sector” and by costs related to restructuring and rebranding of DTZ.
DTZ, founded in Birmingham in 1784, was acquired by UGL in 2011 via a pre-pack administration at a knock-down price of £77.5m.
UGL operates in over 52 countries and delivered record revenues of A$1.9bn last year.