Leading global property consultancy Knight Frank, which has Yorkshire offices in Leeds, Sheffield and Harrogate, has reported a healthy set of financial results for the last financial year.
Although profits were down by four per cent, year on year, turnover was up by six per cent and the balance sheet remained strong with net assets of over £264 million.
Henrie Westlake, head of Knight Frank’s Leeds office, commented: “These results, although pre-Covid, demonstrate the strength of the Yorkshire business. Clearly the pandemic has subsequently changed the way we work, but the whole-hearted commitment and optimism of our team is Leeds has ensured that we continue to do the very best we can for all our clients.
“Highlights of the last financial year included a number of award-winning transactions, notably the funding of 7 & 8 Wellington Place for £210m and the multi-million pound development and funding of the new Amazon distribution facility at Muse’s Logic Leeds.
“We have also been heavily involved in the success of pioneering new office developments in Leeds, such as Kinrise’s 34 Boar Lane and Rushbond’s Majestic, as clients and markets show a flight to quality. Despite the challenges of the pandemic, we remain optimistic about the future, both in Leeds and in the UK as a whole.
“These are testing and challenging times, but we believe we have both the talented staff and the quality of clients to ensure we emerge even stronger once Covid is over,” said Mr Westlake.
Alistair Elliott, senior partner and group chairman of Knight Frank, explained: “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 turnover shows a 6% growth on the prior year, with solid growth of our activities in India, Greater China, Spain and France as we continue to enhance our global platform. This is supported by the continued upward trend of our core UK market presence. Hesitation, due to Covid-19, in the final part of the year resulted in a slight drop in profits with a number of transactions deferring into the following year. Despite the earlier restrictions regarding Covid-19, our performance in Asia Pacific remained resilient and we saw improved margins in Europe.
“Overall most markets performed well. The partnership remains resolute in its plans to continue to invest in the people and markets where we can best service our clients. This well diversified income stream backed by a strong balance sheet gives us the perfect platform to progress from.
“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,” he added.
