DTZ revealed today that it expected to save a further £15m in ‘cost saving measures’ by next April.
Tim Melville-Ross, DTZ chairman, said today at the company’s Annual General Meeting that ‘prudent management of the business’ was needed to offset the loss in transactional volumes.
The company’s results for the last financial year saw pretax profits drop by 46% to £20.6m.
Difficult economic conditions prompted DTZ to put measures in place, including ‘selective recruitment restrictions’ which to date have led to 200 job reductions through natural wastage.
Melville-Ross said that, despite the fall in deals being done, non-transactional work, such as valuation, was doing well.
‘There is still good demand for valuation services, in part prompted by these volatile economic conditions, while our long established corporate recovery team has been very busy and is operating in over 20 countries,’ he said.
He said he expected stronger financial performance in the second half of the year, in line with ‘the normal pattern’, but said it was ‘more than usually difficult’ to forecast the company’s results.