THE Edinburgh Solicitors' Property Centre lost just over £1 million last year, its latest accounts revealed.
But the loss had been expected and was put down to "massive" investment in shaping up the business, which specialises in the marketing of residential property on behalf of a coalition of more than 250 local property solicitor law groups.
Over the year to May 31, 2007, the ESPC reported a pre-tax loss of £1.05m, compared to a £453,992 loss booked the year before.
But turnover rose seven per cent to £9.71m, from £9.08m the year before, helped by an increase in its property marketing income as well as revenues from ESPC Money Management, its financial services arm.
In the report that accompanied the group's latest accounts, directors wrote: "This year has been one of massive investment by the ESPC, the greatest in its 35-year existence." Despite the loss, the group said that its core sales and marketing business "remained strong".
Over the year, the ESPC brought 20,500 properties to the market and sold a record 19,500 homes, worth £3.6 billion, across east central Scotland.
In addition, the group said its espc.com website, which it described as the "jewel in the crown" of its marketing channels, had continued to show increased usage.
"A quarter of a million unique visitors were brought to espc.com each month over the year," ESPC said. "This marked an increase of over 20 per cent on average levels recorded in 2005/06."
Staffing costs at ESPC, which employs 179 people, jumped to £4.69m, from £4.06m the previous year.
As well as investing in its core business, ESPC said it had also pumped money into developing its ESPC Money Management operation and its Move Machine division, its home information pack provision unit, which it is positioning in a crowded and competitive market estimated to be worth around £500m.
The group is also ploughing cash into its mainstream business to help fend off what it described as "the increased usage of national property portals by ESPC member firms".
"It is vital that we continue to invest in our core business to ensure that we offer the latest technology, backed up with first-class marketing, so that ESPC membership do not see a need for alternative marketing channels."
But ESPC said such investments provide the group with "considerable" revenue earning opportunities in a changing market.
"These two additional revenue streams will, over time, provide three things," ESPC said. "First, as volume businesses, they will increase the size and strength in depth of ESPC as a whole so that the group remains a major player in the property market place.
"Secondly, these activities in the English market will allow us to grow over the longer
term...and thirdly, we will be able to use the revenues earned to invest in the continued success of our core property marketing business."
