Half yearly results show Savills revenue up 15%

11 August 2017

Savills plc, the international real estate advisor, announces its unaudited results for the six months ended 30 June 2017.

Key Financial Information

  • 15% increase in the group’s revenue (up from £714.4m (H1 2016: £622.7m). 
  • Group underlying profit** before tax up 12% (5% in constant currency) to £48.1m (H1 2016: £42.8m)
  • Group profit before tax up 27% to £32.4m (H1 2016: £25.5m)
  • Underlying basic earnings per share up 18% to 25.7p (H1 2016: 21.8p)
  • Basic earnings per share up 39% to 16.1p (H1 2016: 11.6p)
  • Interim dividend increased 6% to 4.65p per share (H1 2016: 4.4p)

Highlights

  • Transaction Advisory revenue up 15%, reflecting strong performances in Asia, Europe and the UK Commercial market offsetting a slight decline in UK Residential revenue
  • Property Management revenue up 13%, Consultancy revenue up 15%
  • Continued expansion in Europe and North America, through bolt-on acquisitions and recruitment
  • Savills Investment Management revenue up 22%


Commenting on the results, Jeremy Helsby, Group Chief Executive of Savills plc, said:

“Savills has delivered a great first half performance across the Group driven, in particular, by strong growth in Asia and a resilient performance in the UK.

“In an environment of ongoing political and economic uncertainty, we continue to anticipate that our performance for the full year will be in line with the Board's expectations."

Asia Pacific Commercial

Commercial Transaction fee income in Asia Pacific increased by 39% (23% in constant currency) to £67.6m (H1 2016: £48.7m). This growth was driven primarily by Australia, Hong Kong and Japan. In Hong Kong, Savills share of the market for significant transactions drove a 75% increase in transactional revenue (55% in constant currency), with the business benefiting from a number of large investment transactions.

Overall, underlying profits from the Asia Pacific commercial transaction business grew by 169% to £9.7m (139% in constant currency) (H1 2016: £3.6m).

According to Paul Craig, CEO, Savills Australia and New Zealand, the Australian business results have set new records from both a revenue and earnings perspective.

“This result has been underpinned by the strong performance of our capital markets team which has been involved in more than AU$4 billion in major transactions over the last 18 months.

“We have seen an increase of existing market share; primarily through the recruitment of high quality operatives in major markets. We have also expanded our east coast pubs business, further enhancing our hotels platform.

“In addition to this, our Project Management business has secured a number of key opportunities, leveraging our market leading position and key client relationships across all sectors.

Asia Pacific Residential

Residential Transaction fee income in Asia Pacific increased by 23% to £20.1m (H1 2016: £16.3m) (10% in constant currency). Revenue was driven principally by sales growth of 84% in Hong Kong (63% in constant currency). The Hong Kong residential market saw strong activity at the beginning of 2017 in both the primary and secondary markets where the volume of transactions were up 70% compared with the same period in 2016. In May 2017, the Hong Kong government implemented further cooling measures which are likely to have an impact on volumes in the second half of the year.

Underlying profits in the region decreased slightly by 3% to £2.9m (H1 2016: £3.0m), impacted by a slight slowdown in transactional volumes in mainland China and increased cost allocation to the segment in Australia.

* Revenue and underlying profit for the period are translated at the prior period exchange rates to provide a constant currency comparative.

** Underlying profit before tax ('underlying profit') is calculated on a consistently reported basis in accordance with Note 3 to the Interim Financial Statements.

 
 

Key Contacts

Paul Craig

Paul Craig

CEO Australia & New Zealand

Savills Australia

+61 (0) 2 8215 8888

 

Jessica Freeman

Jessica Freeman

Director - PR NSW
Corporate Services

Savills Sydney

+61 (0) 2 8913 4826