Savills sees record results boosted by regional recovery
REAL estate advisor Savills plc, has announced record results as the group benefits from regional recovery and international expansion.
Profit before tax for the group was up 21% to £84.7m contrasted with £70.1m in 2013.
The group reported record revenue in the UK on the back of a strong London performance and recovery in the regions. Overall group revenue was up 19% to £1.07bn compared to £904.8m in 2013.
Savills expanded into the US with the acquisition of Studley, Inc. in May 2014 and transaction advisory revenues were up 38%, driven by the contribution from the Savills Studley business in the US, and recovery in certain Continental European markets.
Return to profitability in Continental Europe following improved market conditions and the benefit from the management actions taken in recent years
Savills has also acquired SEB Asset Management AG, which will create a substantial European investment management business with an initial combined AUM of approximately €15bn and an Asia Pacific platform with approximately €2bn under management
Paul Fairhurst, head of Savills Leeds, said: “Improved confidence and growth in the regional property markets led to a strong performance across all departments at the Leeds office in 2014.
“Major instructions in Yorkshire included our appointment as managing and leasing agent at Wakefield’s Trinity Walk Shopping Centre and the sale of a 900 unit residential scheme at Olympia Park, Selby.
“In the Leeds office market, the acquisition of new headquarters for DAC Beachcroft at the newly refurbished St Paul’s House, the sale of Barclays House on East Parade and the purchase of 6-7 Park Row on behalf of CBRE Global Investors were among our key successes.”
Jeremy Helsby, group chief executive, said: “This was a strong year for Savills with revenues surpassing £1bn, a record for our Group, as we benefited from the diversity of revenue streams we have across the globe.
“We achieved record revenues in the UK and our European operations also returned to profitability.
“We retain a cautious view on the timing of the recovery in the Hong Kong commercial market and expect the UK residential market to remain subdued as a result of uncertainty around the General Election. “
