UPDATE: Cushman & Wakefield’s gross revenue for the EMEA region climbed 20% last year, compared with 13.4% growth across the global property services business.
However, the region’s profit margin was “about the same” as in 2010, according to EMEA chief executive Paul Bacon, because of the decline in capital markets activity in the fourth quarter.
Bacon was speaking after the privately owned firm announced a global net profit of $19m for 2011, down from $25.7m in 2010, due primarily due to an increase in income tax. However, gross revenue reached $2bn, the second highest in the firm’s history.
For EMEA, Bacon, who will hand over to C&W chairman Carlo Di Sant’Albano on 1 July, said: “Capital markets was a real challenge from September onwards and our performance was therefore off in the final quarter.”
Profitability varied considerably between countries within the region, he noted, saying: “Italy, Holland, Belgium and central Europe were outstanding, France was good, but margins were a bit lower in the UK and Germany. Overall, we had better margins than most of our competitors in the region.”
Full-year revenue from capital markets was marginally down on 2010, but Bacon said that other, lower-margin business lines had compensated for this.
Revenue from its corporate occupier and investor services group was up 20% in EMEA, valuations was up 10% and revenue from leasing was slightly up.
See previous C&W results article and this week’s Estates Gazette for more.