Property News Review of The Group

The Group's Business Review

Colliers International UK (AIM: COL), one of the leading commercial real estate consultancy groups in the UK, announces the initial recommendations from a review of the Group conducted by the Chief Executive Officer, Tony Horrell, who was appointed in November 2010.

In the Trading Update announced in January 2011, we said that Tony Horrell was in the process of completing his initial review of the Group and that we would announce the outcome of this review shortly. The principal conclusions of the review, which has focussed almost entirely on the UK business, are set out below:

  • Overall, Colliers International UK has built a number of high quality core businesses but requires more strength and depth in the crucial, high margin, transactional markets, in particular in Central London, one of the largest real estate markets in the world. The Group currently provides relatively little advice in this market to certain key client sectors, notably institutional investors, REITS and overseas owners. 
  • Selective senior recruitment into these areas is a high priority although we do not envisage that this investment will materially impact the Group’s operating cost base.
  • The scalability of our successful professional services businesses including Property Management, Valuation, Building Consultancy and Rating will benefit from a Group-wide more focused approach to clients - both existing and potential.
  • We will keep all business segments under review for efficiencies with the aim of ensuring all parts of the company are positive financial contributors.

Commenting on the review, Tony Horrell, CEO, said: “I have found the business in generally good shape and with some star performers. The omission in the Group’s current service offering is a strong presence in the high margin, big ticket transaction market. Such a presence will feed almost all our other businesses and addressing this issue will be my first priority.

“Our people are entrepreneurial  and motivated and I will do all I can to keep red tape to a minimum for them so that they can do what they do best – service clients and execute business. I believe we have the potential and will have the resources to move significantly up the UK real estate service provider rankings.”