Carter Jonas saw its fee income climb by 15% to £81m in the 12 months to 30 April 2022, but profit took a slight dip on the previous year.
Operating profit at the consultancy dropped by 0.8% to just under £20m. Profit available for discretionary distribution to members remained around £2.6m.
Chief executive Mark Granger (pictured) warned that the markets in many areas of the business had subsequently become “more challenging”.
However, he said the firm’s strong performance “demonstrates the resilience of our long-term business strategy, which we embarked upon in 2020, coupled with the hard work of our people and a positive response from our clients”.
“As we continue to pursue this plan, we have taken several steps to develop core areas of our business, enhancing both our transactional capabilities and consultancy offer,” he added.
In August 2021, Carter Jonas bought Hertfordshire-based independent planning, urban design and development consultancy JB Planning Associates – the fourth in a series of planning and development businesses purchased over the past few years. This was followed by two acquisitions in the first half of 2022: Midlands industrial and logistics agency McGuinness Waddington Real Estate and specialist real estate strategy practice Tomorrow Advisory.
“These investments have bolstered our presence in Leeds, Birmingham and the Eastern region, key growth markets for our business, and reinforced our position as a national multidisciplinary consultancy,” Granger said. “Additionally, we have recruited several senior people to enhance expertise across our teams and remain committed to strengthening core areas of our business, seeking expansion opportunities in locations where we have strong business connections.”
He warned that sales volume in both commercial and residential were now reducing. “However, all core areas of our business benefit from a range of public and private sector clients, and our financial stability is strengthened further by non-volatile income streams and consultancy services, accounting for 65% of our business,” Granger said.
“While the coming months undoubtedly hold much uncertainty, our ability to adapt and pull together is one of our greatest strengths. I am confident that we are well placed to weather the challenges that we will undoubtedly encounter, helped in no small part by our continued investment in our people.”
Carter Jonas currently has 97 trainees on its APC programme, including graduates and apprentices. It has recently appointed a new head of sustainability to build on its ESG programme and help it deliver on its sustainability targets and objectives.
Growth areas
Life sciences and technology
Scott Harkness, head of commercial at Carter Jonas, said: “Limited supply to accommodate this type of occupier means that competition for space has been fierce, and in the long-term requirements in this market show little sign of diminishing. While we have many experts working closely with landlords, developers and investors specialising in this sector, we have strengthened our offer to meet demand from clients in our established locations as well as other clusters emerging across the country.
Professional services
Building consultancy and project management has grown its turnover by nearly 70% in the past three years. Valuation and property management services continued to win new contracts last year and have expanded to meet an increasing volume of work.
Harkness said: “The balance between non-transactional and transactional work is a core strength of our business and remains integral to our sustainable growth, particularly in the current market. While we expect to see further turbulence and a slowdown overall in transactions from our agency and investment arms, the strength of our professional services work and the unique characteristics of our markets should support our progression over the next 12 months.”
Planning and development
New planning specialists have bolstered the team in Leeds and Bristol. Specialist service lines have also been added.
Colin Brown, head of planning and development at the firm, said: “In the South West we have grown significantly, while in Birmingham, in line with our wider business objectives, we have expanded our dedicated planning and development services. These investments have enabled us to transform our approach in these locations by providing support for numerous regeneration and development projects.
“With our acquisition of JB Planning Associates, we have established one of the largest planning and urban design practices in the East, further demonstrating our commitment to the region. Adding this scale of expertise has benefited our national teams and clients from across the multiple property sectors in which we operate. We are committed to investing in our people at every stage of their careers, from partner level to interns.
“Many of the projects in which we are involved reflect the nuances of the markets in which we operate, and several of these schemes achieved important milestones over the last financial year. In Swansea we celebrated the opening of the city’s new £135m Copr Bay destination. Swansea Council is developing Copr Bay phase one, and we continue to support this process as its property adviser. Other projects we have progressed include the John Radcliffe Hospital in Oxford, the Vaccines Manufacturing and Innovation Centre in Oxfordshire and the sustainable redevelopment of the British Library’s Boston Spa site [near Wetherby in Yorkshire].”
Residential
Lisa Simon, head of residential at Carter Jonas, said sales and lettings had both recorded strong performances. “Significantly, our South West residential team has doubled in size in five years, with Oxford increasing by 60% over the same period,” she added.
“We continue to focus on our burgeoning BTR, PRS and new homes departments, with Bath, Oxford, Cambridge and York performing particularly well. We have made a number of key hires to drive this forward, welcoming our new head of BTR and PRS in September 2021, and have won several client contracts to provide lettings and property management services on large portfolios.”
Recent client wins include Hearthstone Investment Management and MCAP Global Finance (UK).
Rural
The firm’s rural and infrastructure teams delivered a 15% increase in income during the financial year. Agency was particularly busy, both on sales and acquisitions. Premiums are being paid for quality and this is expected to continue.
“We continue to work on some significant infrastructure projects which are part of the government’s commitment to improving our transport network. This is complex work which requires meticulous planning and communication to deliver,” said head of rural Tim Jones.
“Having strengthened our natural capital capabilities, we are increasingly working with clients to explore opportunities for income generation from natural capital, both from the private and public sectors, and improve their environmental credentials.
“Biodiversity net gain, carbon offsetting and nutrient neutrality issues and initiatives enable us to work with other parts of our business to provide tailored solutions for our clients. We can help turn a problem for one into a solution for another.”
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