Colliers eyes double-digit revenue growth in year ahead

Colliers expects to deliver to double-digit revenue growth in 2024 after returning to growth in the final quarter of 2023. Net earnings for the three months to 31 December grew by almost a third to $81.2m (£64.4m) from $62m the same period a year ago. For the whole of 2023, however, net earnings were still down to $144.7m against $194.5m in 2022. GAAP diluted net earnings per share for Q4 were $1.42 versus 51 cents in the previous year owing to reduced acquisition-related costs and lower non-controlling interest. For the full year, GAAP diluted net earnings per share were $1.41 and $1.05, respectively, with the previous year figure affected by a loss on disposal of operations, including Russia. Revenue of $1.24bn for Q4 2023 was broadly in line with the previous year at $1.22bn. There was a slight decline in revenue over the 12 months to $4.34bn from $4.46bn. In Q4 2023, Colliers experienced robust revenue growth in its high-value recurring service lines. Outsourcing and advisory and investment management delivered increases of 10% to $580.4m and 6% to $129.1m, respectively. Over the course of the year, these services achieved even greater growth, with respective increases of 11% to $2.08bn and 28% to $487.5m. Jay Hennick, chairman and chief executive at Colliers, said: “Colliers has strategically transformed into a highly diversified professional services company by expanding its operations to include additional recurring revenue streams such as investment management and engineering and design. Today, more than 70% of our earnings come from recurring services, which provide our business with greater stability and predictability, setting us apart from our competitors.” Throughout the year, Colliers faced industry-wide declines in transaction volumes, which had hurt its capital markets and, to a lesser extent, leasing revenue. The former was down by 35% in 2023 to £702.5m, while the latter fell by 5% to $1.06bn year-on-year. Looking ahead, Hennick said: “We anticipate a return to higher transaction velocity in the latter half of 2024 as interest rates and credit conditions stabilise.” For 2024, Colliers predicts its capital markets and leasing businesses to continue to face challenges in the first half of the year followed by year-on-year growth in the second half. It is anticipated that outsourcing and advisory revenue growth will remain resilient, with investment management revenue growing in line with fundraising, which is expected to improve relative to 2023. Overall, the company is expecting to report revenue growth of between 5% and 10% for the whole of 2024.