Group accounts reveal £863,000 loss in the year to July 2011, down 37% on previous year
The RICS made a loss of close to a million pounds in the year to the end of July 2011, its latest accounts reveal.
The RICS group – which says it is prepared to be in deficit for the next few years as it invests for the longer term - made a loss of £863,000 over the period, a 37% fall compared with the £1,372,000 loss in the previous 12 months and a “better than planned” result according to its accompanying financial statement.
Total income from subscriptions also grew in the period to £37m from £34m last year, partly achieved through membership growing by around 2,000 outside the UK which resulted in an increase in subscription income worth almost £1m.
The group’s financial statement also pointed to “challenging economic conditions” in some markets, which resulted in RICS revenues being £540,000 less than planned and resulting “cost savings” being made.
Summarising the results, the statement added: “The group is undergoing a period of prudent investment aimed at accelerating its long-term vision. As such, it is prepared for a period of controlled financial deficits over the next few years before it expects to see a return on these investments and return to operating at close to break-even.”
However, the returns from the RICS’ investment portfolio remained broadly unchanged with the UK’s low interest rate resulting in “marginal interest” on short term cash deposits.