Knight Frank have released their financial results for the year ended 31 March 2020, and the data shows the company are in a strong position to face the challenges of global uncertainty in 202o. Results showed:
- Turnover up 6% to £549.6m (2019: £517.4m)
- Profit before tax down 4% to £142.7m (2019: £148.4m)
- Strong balance sheet with net assets at £264.1m (2019: £260.8m)
- Cash remains healthy at over five months of operating costs (2019: five months)
Alistair Elliott, senior partner and group chairman said in a statement:
“Set against the backdrop of the Covid-19 pandemic, which continues to cause global economic uncertainty and market hesitation, we are pleased with this strong set of results demonstrating the firm’s ongoing resilience. We have stayed focussed on the two critically important components of our business: our people and our clients. We are incredibly proud of our people who have adapted to the new working environments, designed to ensure the safety and well-being of them and their families. We have continued to provide support, advice and world-class research to our broad range of clients in these fast moving times.
“Our connected global platform, extensive range of services and consultancy advice have proven invaluable. As the pandemic has reached markets around the world in varying strengths and at different times, through close collaboration, we have learnt from each other and taken decisions to protect the long-term future of the firm. Our partnership model means we are able to provide careful and considered advice to clients as they look to navigate these challenging market conditions. We are committed to retaining our independence by ensuring that ownership remains with the people who work in the business. Continuing to trade debt free is an absolute priority.”
“It is extremely difficult to generalise, given all of the circumstances and the impact the real estate sector is experiencing. However, we are trading ahead of expectations at the half year point and, from our perspective, areas such as lease advisory, valuations, property management and most consultancy services have held up extremely well with some
producing really strong performances.
“Whilst believing in the intrinsic and long-term value of the workplace, we are working closely with occupiers and landlords to establish how work environments might best adapt for the future needs. Logistics is maintaining its strength. The retail industry continues to be restructured, food and beverage likewise. Most alternative sectors, especially the private rented
sector, supported by strong demographics and changing patterns of consumption are holding up well and present opportunities for the medium to long-term.
“For residential, a key strength of Knight Frank, since we have been able to reopen our offices and properly re-engage with our clients and customers, activity has picked up considerably. The last quarter was especially busy for the UK’s country market, even in comparison with previous years. It is a heartening reminder that our breadth gives us greater resilience.”
Matt Phillips, head of Knight Frank’s Cardiff office added:
“These strong financial results were reflected in the South Wales market, where Knight Frank enjoyed an excellent year. Since the end of the financial year in March the country has experienced remarkable changes due to the covid pandemic which still poses enormous challenges in this region. Even so, Knight Frank has been able to continue to grow at a measured pace in recent months, strengthening teams where opportunities arise or where growth of the business requires.
“This ongoing performance reflects the quality of our Cardiff based team, together with our ability to liaise closely with the wider Knight Frank partnership network in terms of contacts, global reach, experience and cutting edge research. In these challenging economic times the Knight Frank partnership model and culture really does shine through. We remain fully committed to what we consider a very exciting business outlook in the Principality and are looking to grow further moving forward.”