Avison Young loses over £100m for a second year as more jobs cut
More than £100m has been lost for a second consecutive year by the UK and European arm of global commercial real estate services firm Avison Young as it continued to cut jobs, it has been revealed.
The Birmingham-headquartered division has reported a pre-tax loss of £101.8m for 2024, having posted the same total for 2023.
New accounts filed with Companies House have also revealed that Avison Young reduced its headcount in 2024 from 1,519 to 1,439.
That reduction comes after it also cut more than 200 jobs in 2023.
The results also show Avison Young’s revenue increased slightly from £211m to £212.5m during its latest financial year.
Avison Young’s consultancy revenue dipped from £96.3m to £92.6m in the year while its transactional earnings rose slightly from £34.6m to £34.9m.
The amount of revenue the company generated from property management also grew from £80m to £85m.
A statement signed off by the board said: “Revenue in 2024 was comparable to the prior year, driven by difficult economic conditions which has seen the UK economy experience slow growth.”
Avison Young said it was impacted by an impairment of goodwill during the year of £70m “following a review of future expected cash flows which have been derisked in line with UK economic growth estimates”.
In its prior financial year, the company said it had been hit by an impairment of intangible assets during that financial period of £52.2m following a review of future expected cash flows.
Avison Young hopes for ‘gradual recovery’ of UK economy
On its future, Avison Young said: “Management have reviewed forecasts understanding that through 2025 revenues will continue to be challenged due to the general market downturn evidenced by recent governmental announcements and economic forecasts.
“Based on revised forecasts, the group has continued to trade and generate income in line with the directors’ expectations and the group’s latest forecasts.
“The directors anticipate a gradual recovery of the UK and European economy from Q3 2025 [third quarter] with the real estate market recovering and thus resulting in an increased demand for the group’s services.
“The directors recognise that the timing of such a recovery is dependent on inflation continuing to ease and interest rates cuts.
“Recent Bank of England interest rate updates and inflation data releases have indicated a recovery and stabilisation.
“However, full recovery will be a gradual process, with strategic initiatives being put in place to mitigate adverse impacts.
“In addition, directors continue to review services offerings, streamline reporting lines and create core business focus to drive greater lineage into key markets.
“We have identified key growth areas business groups where we are investing in recourses and talent, including in higher education, living and decarbonisation.”
Market ‘more challenging than anticipated’
In a statement Mark Rose, chair and CEO of Avison Young, said: “Our 2024 Avison Young Holdings figures include one-off items and non-cash accounting adjustments that are both typical within a large global company and consistent with our 2024 recapitalisation strategy.
“They do not represent a full picture of the financial performance of our business in the UK.
“We have built a resilient foundation as our industry navigates a recovery and we are confident and focused on our long-term success and momentum.”
Nick Walkley, principal and UK president, added: “The market in 2024 was more challenging than anticipated, with local and global headwinds.
“As we look to the future we continue to invest in our people, learning and development and spaces.
“We have recently opened our new London office at The Met building, and have signed a lease with Capital&Centric’s Goods Yard development for our team in Stoke. Our focus, as always, remains on our clients and we are excited about the opportunities coming our way.”