Real estate firm hails robust performance against challenging backdrop with revenue of £2.3bn
Real estate firm Savills has said its 2022 performance was ahead of expectations despite challenging markets, with the Birmingham team contributing to a 7% increase in group revenue to £2.3bn.
Underlying profit before tax for the year ended December 31 decreased 18% to £164.6m while reported profit before tax decreased 16% to £153.9m (2021: £183.1m).
Underlying basic EPS was down 19% to 94.9p (2021: 116.5p) and reported basic EPS down 17% to 87.0p.
Simon Farrant, head of office at Savills Birmingham, said: “Savills Birmingham has once again performed strongly throughout 2022, despite the wider economic headwinds. Our teams continue to grow their market share and we look forward to building upon our success in the coming months.”
Savills said its transactional advisory revenues up 4% despite challenging market conditions, particularly in the second half of the year but residential transaction revenue was down 2%.
Property and facilities management revenue rose 13%, and consultancy revenue was up 4%.
Mark Ridley, group chief executive, said: “Performance in 2022 was slightly ahead of our expectations despite challenging markets. More importantly, perhaps, the Group’s performance was substantially ahead of the 2019 ‘pre-COVID’ comparative period.
“The strength of our less transactional businesses, primarily Consultancy and Property Management, helped underpin the group’s performance overall.
“In the year ahead, challenging macro conditions are expected to continue with inflation and interest rates remaining in focus for some time. As a result, the speed at which individual investment markets adjust to the cost of debt is uncertain, although certain markets, such as the UK, are recalibrating faster than in the past, and
will be helped by the lack of development supply and an overall trend to sustainability.
“We would also expect that the release of COVID restrictions in Greater China paves the way for progressive improvement in real estate markets in the region.
“We have started 2023 broadly in line with our expectations. However, it is clear that, at this stage, predictions for the full year are characterised by a wide range of possible outcomes; we believe that H1 2023 will be more challenging than its 2022 comparative; however, we expect progressive improvement through the second half of the year. 2024 should see more positive conditions for real estate market activity and Savills is both retaining its bench strength and investing in advance of such recovery.”