Avison Young’s UK arm has faced significant financial hurdles, leading to over 200 job cuts amidst doubling pre-tax losses.
- The company’s pre-tax losses soared to more than £100m in 2023, compared to the previous year’s figures.
- Despite generating £211m in annual revenue, a slight drop was noted from the previous year’s £211.8m.
- A decline in consultancy and transactional revenues contrasted with increased property management earnings.
- The firm’s future forecasts indicate continued challenges due to market conditions and economic uncertainties.
Avison Young’s UK division, headquartered in Birmingham, has announced substantial job cuts affecting more than 200 employees as it grapples with worsening financial results. The firm reported a significant increase in pre-tax losses, which rose to £101.8m in 2023, up from £55.6m in the prior year. This development comes amid a series of strategic adjustments within the company.
The company achieved annual revenues of £211m, experiencing a slight decline from the £211.8m recorded in 2022. Notably, consultancy services revenue fell to £96.3m from £104.3m, while transactional revenues decreased to £34.6m from £43.1m. On a positive note, property management earnings experienced growth, increasing from £64.3m to £80m, signalling a strategic shift within the company’s operations.
During the same period, Avison Young’s workforce in the UK decreased from 1,743 to 1,519 employees. The firm attributed this reduction in staff numbers to a review of staffing levels carried out between late 2022 and early 2023, resulting in a decrease in staff costs by £11.3m, bringing total staff costs down to £120.9m.
The company identified an impairment of intangible assets valued at £52.2m following an assessment of its anticipated future cash flows. This impairment reflects the firm’s reassessment of its asset values in response to prevailing economic conditions.
In an official statement, Avison Young’s board acknowledged the prevailing challenging market environment dominated by inflationary pressures and high interest rates. The board expressed anticipation for a positive economic impact stemming from the election of a new government but emphasised caution and the need for patience until the October Budget announcement.
Avison Young continues to navigate financial difficulties, focusing on strategic adjustments amidst a challenging economic landscape.
