DTZ slashes the dividend after profits plummet to £21 million

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The firm, one of the big four global real estate advisers, with offices across London, said profits slumped from £38 million to £20.6 million in the 12 months to the end of April. That was despite a 44% increase in revenues to £446.3 million.

DTZ said its decision to cut its full-year dividend to 6.5p from 11.5p was "a prudent measure in more uncertain markets".

Chairman Tim Melville-Ross said: "Economic conditions have continued to deteriorate, especially as a result of the credit crisis prompted by the subprime mortgage difficulties in the US. These have had a substantial impact on property markets generally and inevitably our business."

DTZ's commercial business, which sells and lets office space in the City and beyond, has been hit by falling property values and lower rents. The company said the correction following the "shock" in financial markets had been "quick and traumatic".

Melville-Ross said: "It is difficult to predict how financial and property markets throughout the world will develop over the next two or three years. We believe the broad spread of our activities over many geographic markets and sectors will stand us in good stead even in a prolonged downturn, and should ensure that we are best positioned to deliver growth and value for our shareholders on the recovery of financial and real estate markets worldwide."

The firm, which bought retail specialist Donaldsons for £60 million last year, is looking for a new chief executive as Mark Struckett plans to stand down. It cut 200 staff following the acquisition and reduced its headcount by a further 50 last month.