Colliers hit by settlement lag

The timing of five large deals was behind a decline in real estate agency Colliers International’s revenue and profit last year, chief executive Mark Synnott said.

The New Zealand operations of the Colliers business recorded revenue of

$65 million in 2017 compared with $71m the year before.

Colliers’ results are published because overseas-owned companies must provide the financial results of local operations. Colliers’ parent company is in Canada.

‘‘It was partly due to the market and market share in a softer second half of

2017. We put it down to banks tightening up funding, especially for residential developments, and there was the [general] election,’’ Synnott said.

‘‘It’s the first year since 2009 we haven’t increased revenue.’’

But Synnott said he expected 2018 to be a bigger year than each of the past two because of the lag in the five large deals being settled.

The profit from $65m revenue came to $5.3m after tax, compared with the previous $6.8m profit.

Synnott said the accounts of Colliers’ New Zealand business didn’t reflect the total earnings of all Colliers branches.

Most offices outside the Auckland region were separate companies owned by franchisees. The franchise operations contributed another $43m in revenue, and they paid franchise fees to the Aucklandbased company.