Property consultancy Allsop has reported solid results despite a “sticky and tricky capital markets environment”.
The company reported a 3 per cent increase in turnover to £43.09m in the year ended March 2023, up from £41.67m in 2021/22.
Profits reduced by 10 per cent to £15.37m from £17.1m the previous year.
Allsop said the results represented “solid figures in light of a tougher economic environment”, impacted by rising interest rates, rising costs and the Ukraine War.
Scott Tyler, senior partner at Allsop LLP, said: “The financial year to March 2023 was frustrating in many ways. After the momentum in the markets during the early part of 2022, the short-lived Truss government via the ‘mini budget’ resulted in the pound falling to its lowest level for years against the dollar, gilt prices collapsing with the Bank of England intervening which resulted in higher interest rates.
“The outcome of this produced a sticky and tricky capital markets environment with much lower volumes and borrowing becoming more difficult and expensive.
“However, the auction business at Allsop, both commercial and residential, continued to thrive – driven by private investor cash. The commercial team now has a 72 per cent market share and together the two auction teams remain as the UK’s No1 auctioneers.”
He added: “It was pleasing to see strategic hires into our valuation teams paying off, with both commercial and residential valuations teams growing strongly, winning new mandates from a broader spectrum of clients and growing valuation turnover by 39 per cent. Likewise, the strategic appointment of Seb Verity – having held similar roles at Knight Frank, Savills and Chestertons – as our first head of research is already paying off, and is set to continue offering us new routes for growth, particularly in the residential side of the business with a focus on build-to-rent and student housing.
“We are pleased to have pushed turnover along but, as many businesses are experiencing, costs are rising which has impacted profitability.
“Looking to the future, we have continued to invest time and effort into our dynamic graduate and apprenticeship training programmes where we have 26 graduates and apprentices in the business which amounts to over 10 per cent of the people in Allsop – which I see as exciting, and a great way to grow for the future with home grown and diverse talent.”