UGL Services, which represents about a quarter of the UGL Group’s total business, recorded a first half 2012 revenue increase of just 2 percent to $677.8 million while delivering EBIT of $34.4 million.
Excluding DTZ, UGL Services’ revenue growth was flat relative to the previous corresponding period, largely the result of subdued macroeconomic conditions in the US impacting transaction volumes as well as adverse foreign exchange movements during the period.
UGL successfully completed the acquisition of all the trading operations of global real estate services company, DTZ during December 2011. It was then said that the acquisition would transform UGL’s property services business into one of the world’s largest, integrated end-to-end providers of property services, operating across all key geographic regions.
‘We continue to monitor the economic recovery in the US and remain cautious on the outlook for performance in the second half of the financial year,’ stated the company.
It added, ‘Strong momentum continues to be generated by the Asia Pacific region, with a number of new projects being successfully secured during the half year period. The earnings contribution from DTZ for the half year period was neutral.
‘Globally, tendering levels remain robust for property services and as the integration of DTZ progresses, the business will be uniquely positioned to participate in these opportunities by leveraging the global footprint and integrated end-to-end service offering created by the combined platform.’