Savills plc, the international real estate advisor, today announces its results for the six months ended 30 June 2012.
Savills plc, the international real estate advisor, today announces its results for the six months ended 30 June 2012.
Key Financial Information
- Group revenue up 5% to £353.3m (2011: £335.8m)
- Underlying Group profit before tax down 4% to £19.7m (2011: £20.6m)
- Group profit before tax down 9% to £18.2m (2011: £20.0m)
- Underlying basic earnings per share up 6% to 12.5p (2011: 11.8p)
- Basic earnings per share down 4% to 11.5p (2011: 12.0p)
- Interim dividend increased 5% to 3.3p per share (2011: 3.15p)
Operational Highlights
Strong growth across non-transactional businesses, now accounting for over 60% of Group revenues and profits, largely offsets the expected reduction in Transaction advisory earnings
Property and Facilities Management revenues up 12% driven by several new contract wins in the UK, Hong Kong, Mainland China, Korea and Vietnam; total area under management increased by 29% to 1.57bn sq ft
Transaction Advisory revenues down 4% following the expected lower volumes in Asia Pacific and UK (excl. Central London)
Good progress reducing losses in Europe, which have been cut by 26% despite the ongoing deterioration in market conditions
Cordea Savills Fund Management continues to perform well with Assets under Management up 18% to €4bn
Continued investment in the business through recruitment and acquisition
Commenting on the results, Jeremy Helsby, Group Chief Executive of Savills plc, said:
“I am pleased to report a better first half performance than we anticipated as a result of the continued growth of our Consultancy and Property Management businesses around the world, which now represent more than 60% of our income and profits, and the strength of our businesses in key transactional markets in the UK and Asia Pacific. In addition, despite the continued deterioration of European transaction markets, we have materially reduced losses in our Continental European businesses whilst continuing to invest in our core teams.
Looking to the second half, we currently see no material change in the overall outlook for our business. In Asia, we anticipate an improvement in activity levels in our principal markets. In the UK, the combination of the seasonal summer quiet period and the London Olympics means that it is still too early to predict the trading environment from September onwards. In Continental Europe, we expect transaction markets to remain unsettled in core markets and very subdued in southern Europe. In the US, we have a healthy pipeline of business.
We continue our stated strategy of underpinning our more cyclical transactional businesses with high quality Property Management, Consulting and Fund Management revenues, capitalising on our global reach and attracting the best talent during turbulent markets. This approach, together with the maintenance of a prudent capital structure, positions Savills well both to weather adverse market conditions and to benefit when markets improve.”
Read the full announcement here
For further information, contact:
Savills +44 (0)20 7409 8934
Jeremy Helsby, Group Chief Executive
Simon Shaw, Group Chief Financial Officer
Tulchan Communications +44 (0)20 7353 4200
Peter Hewer/Martha Kelly