Group profit before tax up 9% for Savills
15th March 2012
Savills reports group revenue up 7% to £721.5m (2010: £677.0m) and underlying Group profit before tax up 7% to £50.4m (2010: £47.3m)
The real estate specialist also reports group profit before tax up 9% to £40.0m (2010: £36.8m).
Total Dividend for the year to end of December 2011 was up 4%. Final ordinary and supplementary interim dividends total 10.35 pence per share (2010: 10p) taking the total dividend for the year to 13.5 pence per share (2010: 13p)
UK Residential transaction profits wereup 11% driven by strength in London
There was also significant increase in revenue (+14%) and profit (+16%) from Global Property and Facilities Management business with a 23% increase in total area under management
Profits in Mainland China (Ex. Hong Kong) increased by 43% to £7.3m (2010: £5.1m)and there was also significant profit growth (+38%) at Cordea Savills, the Fund Management business.
Commenting on the results, Jeremy Helsby, Group Chief Executive, said:"Our positions in London and Asia, in both the Residential and Commercial markets, and a strong and growing non-transactional business provided the platform for this performance.
"Challenging markets can provide attractive expansion opportunities and we have been able to open additional offices in London, Germany, China, and the East and West Coast markets of the US.
"2012 has started well albeit that we anticipate a continuation of challenging transaction market conditions in the first half, with greater market confidence emerging to improve financial performance during the second half of the year.
We anticipate further recovery in the US, relative stability in the prime Central London Residential and Commercial businesses and continued growth in Fund Management. In Asia, we expect a somewhat reduced volume of transactions but the impact of this should be largely mitigated by further growth in China and in our non-transactional businesses across the region."
"Subject to unforeseen circumstances, we anticipate performing in line with expectations for the full year."
At 8:04am: (LON:SVS) Savills share price was -1.7p at 391.1p
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