Colliers CRE (AIM: COL), one of the leading commercial real estate consultancy groups in the UK, provides a post year end trading update for its financial year ended 31 December 2009, ahead of the announcement of its full year results in late March 2010.
We completed an £18.4 million (net) new share capital issue to expand the Group's equity base in October 2009. This fundraising both strengthened our balance sheet and also brought in FirstService Real Estate Advisors ("FirstService REA") as a major shareholder. We have also re-financed our bank facilities and now have an £18 million revolving credit facility expiring in September 2012.
The fourth quarter was our strongest in terms of revenue generation in 2009, and we are expecting this momentum to continue into 2010. However, the previously reported difficult trading conditions earlier in 2009, and the length of time some transactions are taking to close, will lead us to report an operating loss, before interest and exceptional items, for the year to 31 December 2009, of approximately £10 million (£8 million of which was sustained in the first half). We will report year-end net debt of approximately £8 million.
After an 18 month period of restructuring the business, we now have an appropriate cost base and a stable platform from which to exploit improving market conditions in the UK. Going forward, we intend to selectively recruit key individuals to develop further those parts of our business we expect to grow in the forthcoming months.
Internationally, approximately 70% of Colliers International businesses will be wholly, majority or partially owned by FirstService REA. We believe that this will drive Colliers International's rapid transformation from a traditional network into an efficient and cohesive global business.
Prospects for 2010 are encouraging. Our financial strength and our restructured UK platform will enable us to take advantage of the upturn in activity here. In addition, we see further opportunities resulting from the strengthened Colliers International platform and look forward to working much more closely with our colleagues around the world.
Sir John Ritblat, Chairman, comments:
"2009 was certainly a challenging year. However, we ended it with a strengthened balance sheet and encouraging prospects for 2010. To be part of one of the three largest commercial real estate businesses in the world, where muscle counts, is just where we want to be and as we see the signs of recovery feeding through to the top line, I am confident that the Company will now move forward strongly."
For more information contact our press office:
Natasha Sunderland Head of PR +44 20 7344 6641
Jacqueline Whitaker Associate Director +44 20 7344 6706