Real Estate Agency, Avison Young, Suffers Over £100m Loss Again, Imposes More Layoffs
Avison Young, a global commercial real estate services firm, has reported a consecutive annual pre-tax loss of over £100 million for the UK and European arm in both 2023 and 2024. This continuous financial downturn coincides with job cuts, with the workforce decreasing from 1,519 to 1,439 in 2024, according to newly filed accounts with Companies House.
The Birmingham-headquartered division recorded a loss of £101.8 million for the year 2024, replicating the same total for 2023. The company's revenue slightly increased from £211 million to £212.5 million during its latest financial year. However, consultancy revenue dipped from £96.3 million to £92.6 million, whereas transactional earnings rose slightly from £34.6 million to £34.9 million. The amount of revenue generated from property management increased from £80 million to £85 million.
The statement signed off by the board attributes the financial performance to "difficult economic conditions," which led to slow growth in the UK economy. The company was also impacted by an impairment of goodwill during the year, totaling £70 million as a result of a review of future expected cash flows adjusted for UK economic growth estimates.
In the prior financial year, the company encountered an impairment of intangible assets, amounting to £52.2 million, following a similar review of future expected cash flows.
On a positive note, Avison Young expects a "gradual recovery" of the UK and European economy from Q3 2025, with an anticipated increase in demand for the company's services as the real estate market recovers. The recovery depends on inflation continuing to ease and interest rates decreasing.
Management acknowledges that the timing of the recovery is contingent on these factors and are putting in place strategic initiatives to mitigate adverse impacts. They have identified key growth areas, such as higher education, living, and decarbonisation, where they will invest in resources and talent.
Mark Rose, Chair and CEO of Avison Young, highlighted that the financial figures include one-off items and non-cash accounting adjustments, not representative of the actual performance of the UK business. He expressed confidence in the company's long-term success and momentum.
Nick Walkley, Principal and UK President, noted that the market in 2024 was more challenging than anticipated, requiring continued investment in people, learning and development, and spaces. The company recently opened a new London office and signed a lease for its Stoke team at Capital&Centric's Goods Yard development. The focus remains on serving clients and being prepared for future opportunities.
- The financial performance of Avison Young, a global commercial real estate services firm, was influenced by "difficult economic conditions" that slowed growth in the UK economy.
- In the UK business arm of Avison Young, investments will be made in key growth areas such as higher education, living, and decarbonisation as the company anticipates a "gradual recovery" of the economy from Q3 2025.
- Mark Rose, Chair and CEO of Avison Young, emphasized that the financial figures include one-off items and non-cash accounting adjustments, not reflective of the actual performance of the UK business, and expressed confidence in the company's long-term success and momentum.
