Robust annual results feed through to 2020 for real estate group

Real estate advisor Savills has hailed a period of growth, with the North West region contributing to better turnover and profit levels for the year to December 31, 2019.

Revenue were up 10% to £1.93bn, driven by a strong 16% improved performance in the less transactional business lines, which accounted for 57% of 2019 revenue.

Statutory pre-tax profits increased six per cent to £115.6m, up from £109.4m in 2018.

The firm has announced a final ordinary and supplementary interim dividends of 32p per share, a three per cent improvement on last year’s 31.2p.

Savills said its resilient performance reflects its geographic diversity and strength of less transactional service lines.

Transaction advisory revenue grew by two per cent, led by North America, Europe and the Middle East.

There was further strong growth from the less transactional services, with property and facilities management revenue up 17% and consultancy revenue up 15%.

UK profits increased by seven per cent to £81.9m, led by property management and consultancy. Savills UK Residential grew revenues by six per cent, outperforming the decline in UK market volumes.

Continued growth in North America was driven by the occupier-focused business with revenue up 11% and underlying profit up 35% to £17.3m.

Savills Investment Management reported a record year with revenue up 19%, profits up 65% to £18.1m and assets under management up eight per cent to £17.7bn. New inflows of £3.1bn were up 29% on 2018’s £2.4bn level.

Group chief executive Mark Ridley said: “I am very pleased that Savills delivered a good performance in 2019 in some challenging market conditions.

“This reflects the strength and resilience of our global, diversified business as we continued to grow our less transactional service lines and outperform in many of our transactional markets.

“We continue to focus on growing our less transactional businesses, increasing our share of the global transactional markets and enhancing the resilience of the business.”

He added: “While we continue to monitor the impact of global uncertainties on investor and occupier demand for real estate, we have made a good start to 2020, with the first two months outperforming the same period last year on all measures.

“As a result of the dynamic situation in respect of COVID-19, it is difficult accurately to predict its impact on our business for 2020 as a whole, although we do expect a greater weighting of activity to the second half of the year.”

James Evans, head of Savills Manchester, said: “Just as Manchester continues to grow, so does our office, and with over 240 colleagues based in the city we are delighted to have contributed to these robust results.”

Charlie Kannreuther, head of residential sales at Savills in the North West & West Midlands, added: “Growing market share proved to be the key to another successful year in the region.

“Our Cheshire residential offices performed particularly well, despite the ongoing backdrop of political uncertainly. This highlights generally strong confidence in the housing market in the region.”