While the worldwide recession drove the global property adviser DTZ £79.7 millioninto the red during its year to April, its revenues from professional services rose by eight per cent.

This included two big national property management contracts handled by the Birmingham office – for the Treasury on behalf of DEFRA and the renewal of a deal to run WH Smith’s estate.

“We have some quite healthy income, which has kept us in a good position,” said Geoff Thomas, who heads DTZ’s 250-strong operation in Birmingham.

Mr Thomas fears it could take some time for the office market in Birmingham to recover.

“I think it is going to be difficult for a couple of years,” he said “There are three big new buildings and a couple of refurbishments predominantly empty.”

DTZ, though, has had a busy year in Birmingham. Work has just started in the £84 million Bournville College project in Longbridge.

“We acquired the site for them from St Modwen and got planning permission,” Mr Thomas said. “It will be a very good boost for Longbridge.”

In Solihull, DTZ assigned the lease of the former Taylor Wimpey HQ to nPower in February. Earlier it acted for Wragg & Co, when the law firm took on 250,000 sq ft at Snowhill – “the biggest office deal outside London,” Mr Thomas said.

Mike Mitchell, DTZ’s MD for UK regions, commented “Despite difficult economic circumstances, I am pleased with the region’s performance.

“Following a very difficult year, investors now can be comforted that we are experiencing a stabilisation of yields with new funds being raised to take advantage of traditionally low pricing.

“Investors and occupiers must be mindful that we may continue to see pressure on rents over the coming year, but with careful stock selection and a strong focus on the asset management strategies investors can expect some excellent buying opportunities.

“There are continuing opportunities in the public sector.”

DTZ’s overall loss included £17.3 million from re-structuring and redundancies and a £27.3 million non-cash charge, arising mainly from the sale of a half-share of a North American venture.

In January it raised £48.7 million in an equity fund-raising and has secured an extra credit facility of £15 million since the year-end.

Paul Idzik, former chief operating officer at Barclays, arrived as chief executive last November.

He has driven through a cost-cutting programme that has saved more than £30 million a year, with plans for another £20 million by next April.

“Since January, we have taken aggressive action to reduce costs, rationalise head-count and enhance discipline within our budgeting, marketing and reporting processes,” he said.

“These changes, coupled with the group’s strengthened financial position, will ensure that DTZ emerges from this on-going process of change poised to enjoy the growth opportunities that will return as markets recover.”

The results had been largely foreshadowed in a trading statement in March. Yesterday the shares stayed unchanged at 43.75p. There is no final dividend.