Companies: DTZ   

Shares in international property transaction advisor DTZ crashed to an all-time low after the company revealed that pre-tax profits were down 58% to £3.2m in the six months to October, with EPS slashed 86% to 1.3p after exceptional costs. Blaming the result on difficult economic conditions and what it called a 'disproportionately high' comparative figure in 2001, DTZ also revealed £2.1m of exceptional costs, arising from a review of its German operations and resulting redundancy costs. Meanwhile the company has agreed to sell its 50% stake in Curzon Global Partners to joint venture partner AEW for £5.8m, generating an estimated exceptional profit of £4.4m. Despite its troubles, DTZ has proposed to keep its interim dividend unchanged at 2.25p, giving the shares a prospective yield of 9.4%. It is also holding fast to its international ambitions. The second half will apparently show a big improvement on last year, but a further £3m of exceptionals will be borne from further staff cuts in Europe, Australia and the UK. Chairman Tim Melville-Ross said that full-year profits 'are likely to be somewhat lower than those in the year to 30 April 2002', when the group made £12.7m at the pre-tax line. The current weakness could offer a good buying opportunity.