STAFF pay cuts and a strong performance in its Asian business helped property consultancy DTZ return to the black only a year after posting losses of £35.1m.
But despite the impressive turnaround to report pre-exceptional profits of £3.6m for the year to the end of April, the London-based company extended its dividend freeze to two years, warning of a second slump.
Bob Rickert, chief operating officer, said: “We really feel like we have been successful in turning the company around and getting back on track. In terms of the dividend, we have no set timetable and will go by how the markets progress.
“We have found our shareholders to be supportive of the company shoring up the restructuring programme rather than paying a dividend.”
A far-reaching strategic review and restructuring programme delivered savings of more than £75m, allowing the company to fine-tune its operations in Asia where revenues were up 24.1 per cent to £98.5m. Staff reportedly took a pay cut of about 10 per cent which helped save some £75m.
In a sign the real estate advisor is optimistic about its own position it announced plans to take total control of its European asset management business. The deal, worth up to €22m (£18.4m), would involve the company buying the remaining 20 per cent stake it does not own in DTZ Asset Management Europe.
Rickert added: “Going forward we will continue to focus on our home businesses in the UK and China. We are conscious there remains considerable economic uncertainty and geopolitical risk around the world and our outlook remains cautious.”