DTZ has issued a profit warning stating that losses for the year to 30 April 2009 would be ‘significantly greater’ than expected.
The property services firm’s share price dropped 20% to 31p this morning after it revealed that it was achieving ‘lower than expected revenues’.
It said: ‘Since December, as illustrated by the steep decline on stock markets and economies across the world, there has been a significant ongoing deterioration in trading conditions and the board’s current view is that the group will report a loss before taxation and exceptional items for the year to 30 April 2009 significantly greater than anticipated.’
Since then as part of a review of its underperforming operations, DTZ closed its offices in Portugal and Austria in the first quarter of this year, and said it would continue to take ‘decisive action’
It said that Idzik’s restructuring programme, intended to save £15m by 30 April 2009, had been accelerated, and that further savings of £15m were expected for the next financial year.
In addition, it said it was in the ‘advanced stages’ of identifying additional cost savings of a further £20m to make in the 2009/10 financial year, bringing its total savings to £50m.
Group finance director, Colin Child has stepped down from the board and is to leave the company ‘with immediate effect’.
Another ex-Barclays man, Bob Rickert has been appointed as chief financial officer in addition to his role as chief operating officer.
As part of an effort to improve management structure, Idzik has created an executive committee which is responsible for overseeing ‘financial performance, accountability and management discipline’, and will report directly to him.