Allsop has recorded a year-on-year uptick in turnover along with a reduction in profit, in what the business called a “sticky and tricky” capital markets environment during a “frustrating” year.
Turnover rose by 3% to £43.1m for the year ending March 2023, while profit reduced by 10% to £15.4m.
Net assets stood at £8m, while cash at bank and in hand was £3.2m during the year.
The consultancy said the results were solid in light of a tougher economic environment, which included rapidly rising interest rates, rising costs and the Ukraine war.
Scott Tyler, senior partner at Allsop, said: “The financial year to March 2023 was frustrating in many ways. After the momentum in the markets during the early part of 2022, the short-lived Truss government via the ‘mini budget’ resulted in the pound falling to its lowest level for years against the dollar, gilt prices collapsing with the Bank of England intervening, which resulted in higher interest rates.
“The outcome of this produced a sticky and tricky capital markets environment with much lower volumes and borrowing becoming more difficult and expensive.”
Tyler said that despite the macroeconomic challenges, the auction business performed well on the back of private investor demand. He said the commercial team now has a 72% market share.
He added that turnover generated by Allsop’s valuation teams was up by 39% following new hires, and that the appointment of Seb Verity as its first head of research in April last year is “already paying off”.
Verity’s team will offer “new routes for growth”, said Tyler, particularly in the residential side of the business with a focus on build-to-rent and student housing.
“We are pleased to have pushed turnover along but, as many businesses are experiencing, costs are rising which has impacted profitability,” he said.
Tyler said the business continues to invest in its graduate and apprenticeship training programmes. It has 26 graduates and apprentices, accounting for more than 10% of the people at Allsop. Tyler underlined it as “a great way to grow for the future with home-grown and diverse talent”.
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