DTZ plummets as turmoil takes toll

London property agent DTZ today warned profits will be "significantly below market expectations" as the credit crunch hits demand for investment property.

The shares plunged 51¾p to 210p. The firm even blamed last weekend's collapse of Bear Stearns for "adding to the turmoil in the financial markets", making it "more difficult than normal to predict the timing of transactions around our year-end".

DTZ's financial year runs to the end of April. Last year it made profits of £41.8 million, and analysts' forecasts for the current year had ranged from as much as £43.1 million at broker Charles Stanley to as little as £29.5 million at Arbuthnot Securities. DTZ also warned it is possible that UK property values will "decline further".

It said there had been a substantial change in the UK investment market since last summer, which had been reflected in cuts in prices, and added: "Property markets remain constrained by a lack of debt availability."

DTZ also warned that it does not expect any rapid recovery, saying: "Overall, in contrast to 2007, we expect the global property services market to experience more difficult conditions throughout 2008."