Dtz Share Discussion Threads

[johnrxx99] 14/10/2008 15:36

As they did with Bernard Thorpe but it was necessary.

[martinadilsmith] 14/10/2008 14:39

@Monty - that was a tad bitter, wasn't it?

[monty333] 14/10/2008 12:41

Ex Donaldsons CEO Peter Mawson would have been the perfect choice, but DTZ were so busy steam rollering over all the good and quality of the Donaldsons people, systems, procedures and work ethos, they wouldn't know a good CEO if it stared them in the face, the very reason why 30% of possibly the best Donaldsons people left in the first 6-9 months post acquisition and in some cases entire departments leaving all in one go. Not a good sign of the so called quality management at DTZ I'm afraid to say.

Can see DTZ being taken out in next 12 months anyway. A shame.

[johnrxx99] 14/10/2008 12:22

With a plc the size DTZ will be in a few years it is a hard choice. DTZ was lucky with Richard Lay, a real genious and Mark was not far behind. However to find a surveyor that has their qualities is not easy. I'd plump for an accountant with the client forward facing by the surveyors.

It was good to have Mark and Richard appearing in the pitch for new work and indeed fulfil a client management role but in truth it's just too big now. So accountant it is. The old days have gone but I can look back on them with great pleasure.

[johnrxx99] 14/10/2008 11:34

I've been wondering about the new bloke taking over from Mark and wonder if an ex banker is what we need at the moment. I'm sure he's bright but the image may be a tad tarnished. The city should like it though, in due course.

[johnrxx99] 14/10/2008 11:32

Far from it, uhmm, apart from the market, lol

Having worked for DTZ most of my professional life I know their strengths even though I retired 8 years ago. I just wish I had the pluck to invest at the moment. I'm afaid the worst is yet to come but we may see a bounce for a short while, until reality sinks in.

[martinadilsmith] 14/10/2008 11:26

@ Diddymen - thanks for a very informative response.

@bmw30csl & johnrxx99 & Monty333 - yes, but the industry as a whole is shedding staff.
CBRE -

JLL, Cushmans, King Sturge -

Cluttons, Savills:

However, DTZ are winning new business and are pushing out:

New DTZ JV in Germany -

And let's not forget that DTZ have just

- won a new three year CREM contract to manage to manage all 50 AIB buildings in the UK

- won the retail warehousing instruction to provide joint agency, joint rent review and sole investment appraisal and planning advice on The Fort Shopping Park Birmingham.

- the most active City disposal agent for 2007/08 according to FOCUS - the online property database.

It's not all doom and gloom.

[monty333] 14/10/2008 08:52

As an ex Donaldsons/DTZ person, I agree John.

[johnrxx99] 14/10/2008 06:55

Unfortunately they were the first to go in 1990, followed by marketing and IT. They've been there before and will be again no doubt as these cycles are never ending.

The whole market is shedding staff - never pleasant to have to choose between people that have worked for you for many years.

[bmw30csl] 14/10/2008 06:29

They let go some graduates from last year recently - they are in real trouble when they do stuff like that.

[the diddymen] 13/10/2008 22:01

Martinadilsmith

I think that my first issue was about the general presentation. Some accounts are straight forward and lend themself to understanding, these do not. I do not know whether it is print size, colour, or what, but they are not readily digestable accounts.

Technically, after reading the Accounts I do not understand the impact of the acquisitions on the P&L. I can see the balance sheet, but how are these acquisitions going to drive the company forward.

The associated reports left more questions than answers. I struggled to understand why a business experiencing 15% organic growth (in a difficult market) [CEO's report] sees diminishing returns. I do not feel that it is sufficient to say that the downturn in Global markets is to blame. The Company has achieved a 15% growth despite the adverse conditions, so was it a case of overspend to achieve that growth, or was it that they were mugged and were unable to reduce their overhead in time. I felt that the city probably got the real story, while the readers of the Accounts must come to informed guesses

This is just a flavour of my misgivings, there were other niggles - I find some accounts very easy to understand, but not these.


TD

[johnrxx99] 13/10/2008 12:48

The internationalisation has been going on for 20 years. IMO, it's in the price but who knows in this market. Anything can happen to anyone.

[martinadilsmith] 13/10/2008 11:01

@ The Diddymen:
What did you not like about the presentation of the accounts?

[the diddymen] 12/10/2008 16:57

For avoidance of doubt I have gone short in this share.

The reasons for going short are primarily based on the sector. I still do not feel that the recessionary pressures are sufficiently factored into property prices, which will impact DTZ.

The timing of their international diversification could not have come at a worse time.

They now have £152m of goodwill on the BS, net current assets of c£20m, and long term debt of £63m. The later is going to draw on cashflow, which is under pressure from profitability.

They have a big investor at 28% shareholding who has the cash to bail them out, but I cannot see them being altruistic, when they could make a 'distressed' offer. Current investors may moan and groan, but it appears that they need £20m to supplement cashflow (a result of weak profits/losses?), and right now I cannot see banks being involved in a bail out in the property sector. That leaves their key investor taking the risk.

I have no idea at what price but the current market cap of c£50m looks generous.

The final issues which persuaded me to go short were the risk of controls over a disparate and new empire in the current climate, and a rather poorly presented set of accounts.


TD

[blackdown2] 12/10/2008 10:41

Directors bought shares at around the 220p mark. Just goes to show that director buying isn't always a good guide to future share performance.

[johnrxx99] 11/10/2008 11:35

hvs - I'd be interested to learn how you worked that out.

[hvs] 11/10/2008 10:14

Its looking very very grim.

The management MILKED IT like there was no tomorrow.

Now the shareholders will pay the price.

[blackdown2] 11/10/2008 10:12

Looking grim for DTZ. Probably going to need a rights issue to keep going - or (plus) major staff lay offs.

[martinadilsmith] 10/9/2008 14:07

Up another 2% today.
Is there something going on?

[martinadilsmith] 09/9/2008 11:10

Up 5% in two days!
A temporary spike caused by the US bail of FM & FM?
Or the first green shoots of recovery?

The RICS think the latter!

[blackdown2] 27/8/2008 17:50

Only if there is a bid.

[the knowledge] 23/8/2008 13:10

DTZ share price will be 300p by the end of the year.

[monty333] 22/8/2008 08:52

bd2

I think you'll find the share price was nearer £6 around June'ish 07 when the first rumours starting appearing in the property press.

Beau

[blackdown2] 22/8/2008 08:11

DTZ paid £39.5 million for Donaldsons (approx £9 million of this in shares), plus there is a further deferred payment of £7.3 million (in cash) due. At the time, DTZ share price was about 500p. Donaldsons were/are strong in retail - pretty weak at the moment.

DTZ is now capitalised at about £60 million.

Just shows how management teams can get things absolutely wrong.