25.07.2011Colliers International UK (AIM: COL), one of the leading commercial real estate consultancy groups in the UK, provides a trading update for the half year ended 30 June 2011, ahead of the announcement of its interim results in late September 2011. Trading review The Company is pleased to report that Group revenues in the six months ended 30 June 2011 were a little over £31m representing 2.5% growth over the equivalent period in 2010. General operating costs continue to be well controlled although some additional costs have been intentionally incurred as a result of a planned recruitment programme. As a consequence of this, the Group will report an operating loss for the half year. In June 2011, the Company disposed of its 24% shareholding in associated company Paladin Group Limited for an initial £0.7m with a potential further payment of up to £0.3m dependent upon the trading performance of Paladin in its year ending 31 March 2012. The book profit realised on this disposal will offset other reorganisation costs in the period. Looking forward to the second half of the year, market conditions remain challenging but the Group does expect to see revenues continuing to grow year on year. The Board currently believes that this steady growth will produce a small positive EBITDA for the year ending 31 December 2011. Notwithstanding this, the Group expects to report a pre-tax loss for the full year, albeit at a much lower level that that reported in 2010. Further guidance regarding the anticipated outturn for the year will be given in the interim results announcement in late September. Board Change After 4 years as Non-Executive Director and Chairman of the Audit Committee, Christopher Newell advised that he would like to resign his position and the Board has today accepted this with regret. We are very grateful for his services and extend to him our thanks and best wishes for the future. We are pleased to announce that Colin Wagman has today agreed to re-join the board as Non-Executive Director. Colin is a Chartered Accountant and is Deputy Chairman and Finance Director of Delancey, a specialist real estate investment and advisory group. He previously served as a Non-Executive Director of the Company between August 2001 and October 2009. Sir John Ritblat, Chairman of the Company, said: “It is pleasing that our revenues continue to grow. Although some additional costs have been intentionally incurred as a consequence of our recruitment programme, and market conditions remain challenging, we expect that the return to profitability will not be long deferred”.