DTZ is expected to announce this week that it made a £36m loss last year.

The plunge into the red underlines the challenge facing Paul Idzik, the group’s chief executive, and will force the group to scrap its dividend.

DTZ will announce its results as leading City analysts question whether the beleaguered property adviser will meet covenant tests on its loans next year.

Last week Miranda Cockburn, an analyst at Cazenove, wrote: 'In order to meet bank covenants from mid 2010 onwards, costs need to have come down significantly but also activity levels and turnover need to have picked up.

'In this regard we expect more office sales or closures over the next year.'

Daily Telegraph