Property firm DTZ warns on results as mkt worsens

Global real estate agent DTZ Holdings Plc warned of a full-year pretax loss as conditions in the property market continued to deteriorate, and it played down prospects of any improvement before 2011.

The pretax result in the year to 30 April would be "significantly lower than expected" and it was speeding up a programme of cost cuts, it said in a statement on Friday, sending its shares sharply lower.

DTZ, which operates in 162 cities worldwide, said trading conditions in the global commercial property market had soured since the start of the year — a situation worsened by the lack of available credit for customers.

"These weakening market conditions are reflected in the group's trading position, alongside that of our peers" it said. "Accordingly, the group is achieving lower than expected revenues and maintains a cautious outlook for 2009/10."

At 0810 GMT, the company's shares were down 24 percent at 30 pence.

DTZ said it was accelerating a programme of cuts announced with its half-year results, which had been aimed at shaving 15 million pounds off its cost base both this year and next.

"The group is already in advanced stages of identifying additional cost savings," it said, adding it would deliver a 20 million pounds in savings for the 2009-10 financial year.

DTZ raised 48.7 million pounds in a share placement last December, allowing it to renegotiate its banking facilities and strengthening its balance sheet.