The UK arm of global commercial real estate services firm Avison Young shed over 200 jobs as its pre-tax loss almost doubled to more than £100m during 2023, it has been revealed.
The Birmingham-headquartered division has reported a pre-tax loss of £101.8m for 2023, having previously posted a loss of £55.6m in 2022.
Newly-filed accounts with Companies House also show that Avison Young’s UK headcount fell from 1,743 to 1,519 over the 12 months.
The results have also revealed that the firm’s revenue totalled £211m for the year, down slightly from the £211.8m it posted for 2022.
Avison Young’s revenue from its consultancy services fell from £104.3m to £96.3m in the year.
Its transactional revenue also dipped from £43.1m to £34.6m but its earnings from property management surged from £64.3m to £80m.
Avison Young said there was an impairment of intangible assets during the year of £52.2m following a review of future expected cash flows.
Its staff costs were £11.3m lower in the year a £120.9m after a review of staffing levels in late 2022 and early 2023.
Avison Young’s revenue continues to be ‘challenged’
A statement signed off by the board said: “Subsequent to the year end, the challenging market conditions driven by inflationary pressures and high interest rates have resulted in a slower than expected recovery.
“In addition, the election of the new government is forecast to have a positive impact on the economy but there will be caution for investors until the October Budget as well as traction across manifesto targets such as increasing new house builds.
“Management have reviewed forecasts, understanding that through 2024, revenues will continue to be challenged due to the market downturn.
“Based on revised forecasts, we have continued to trade and generate income in line with the directors’ expectations and the group’s latest forecasts.”