Colliers to jettison HR unit

Posted On Thursday, 17 June 2010 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Property services group Colliers SA, which is listed on the JSE, has announced that it will dispose of its human resources and payroll business.

Property services group Colliers SA, which is listed on the JSE, announced on Tuesday that it would dispose of its human resources and payroll business.

This came after the company’s directors decided to focus on property-related services and property investment.

The company also cited the negative effect of the depressed economy and related problems in the property industry.

Dividends to shareholders were therefore withheld.

Meanwhile, a company statement said Colliers’s continuing operations — property investments and property-related services — recorded a loss for the year of R16,8m.

The company said it had to impair loans and inventory by more than R18,5m and wrote off R2m of bad debts.

“Despite the loss, the group remains stable and well positioned to grow when the already evident recovery in the property market gains momentum.”

Furthermore, Colliers CEO Rick Fertig and directors Bernard Kaiser, Wayne Alcock and Bill Ward would evaluate increasing the annuity income of the group by acquiring more income producing companies.

On the operations side, auctions, broking and property and facilities management all yielded positive returns, while the residential operations suffered a loss, but showed signs of recovery.

“In general, there are numerous opportunities which have arisen which, if successful, will have a positive impact on the property services side of the business,” said Mr Fertig. He did not provide details.

The company recently diversified into the residential property market, establishing Colliers Residential.

Overall, the group’s headline loss per share for the year ended February 28 was expected to be 60% to 65% better than the headline loss per share for the previous year.

Earnings per share were expected to be 200% to 205% lower than the earnings per share for the previous year.

Last modified on Tuesday, 28 January 2014 08:03

Most Popular

Kommetjie master plan development on the cards

Jul 11, 2020
A new mixed use development is being planned near the landmark Imhoff Farm in Kommetjie,…

Redefine Properties appoints Diane Radley to board of directors

Jul 21, 2020
JSE-listed diversified Real Estate Investment Trust Redefine Properties (JSE: RDF) has…

Will the repo rate hold or fall? Experts divided

Jul 13, 2020
South African Reserve Bank
Experts are divided on whether the South Africa Reserve Bank (SARB) Monetary Policy…

Commercial Rental Market Survey sees declining market activity and rising vacancy rates in Q2 2020

Jul 10, 2020
In this report, we discuss the 2nd quarter 2020 results of the rental market component of…

Lower house prices in the Western Cape behind renewed interest from first-home-buyers

Jul 16, 2020
Carl Coetzee CEO of BetterBond
Property in the Western Cape is regarded by many as among the most expensive in the…

Please publish modules in offcanvas position.