Property market woes puts DTZ into the red

TAKEOVER target DTZ has slipped into the red as the commercial property giant continued to suffer from subdued trading conditions in key markets last year.

The company, which was hit hard during the recession, yesterday posted a "disappointing" 600,000 loss before tax and exceptional items for the year to 30 April, down from a 3 million profit previously.

It said talks with potential suitors were ongoing after its majority shareholder, French group SGP, declared its interest earlier this year.

Australian firm UGL is also believed to be hovering. Analysts said at the time that a bid by SGP was likely to be worth about 160m.

Revenues at the company, which has debts of almost 64m, slipped to 341.3m from 356m as it experienced "varying" trading conditions in the 42 countries in which it operates.

While the Asia-Pacific business performed well, revenues in the UK fell 12 per cent to 128.3m amid lower levels of activity and the firm's decision to maintain investment in the British operation.

However, group chief executive Paul Idzik, the former Barclays chief operating officer drafted in at the height of the company's difficulties in 2008, said there was evidence of a "substantial progress in some areas".

He added: "While the prevailing mood remains one of caution, I believe the group is on the right path and am confident we will achieve this growth."