Savills plc, the international real estate advisor, publishes the following Pre-Close trading update in respect of the year to 31 December 2017.
The Group experienced a stronger than anticipated finish to the year in a number of our businesses around the world. In addition to substantial commercial transaction volumes in both the UK and a number of Asian and European markets, the relative resilience of Savills UK Residential transaction business, which achieved year-on-year revenue growth in challenging markets, was of particular note. Accordingly, the Group now anticipates that underlying results for the year to 31 December 2017 will be ahead of our previous expectations.
In the UK, we saw increased market share in commercial transactions, primarily as a result of relatively robust occupier demand and continued strong investment interest from the Asia Pacific region. Our Less Transactional businesses, both in the UK and globally, performed in line with our expectations.
Our Asia Pacific and Continental European transactional businesses have performed ahead of our expectations, with particularly strong results from Hong Kong, China, Australia, Japan, Ireland, Spain and the Netherlands. Improvements in these countries and in the UK more than offset a decline in the US business due, in part, to continued occupier uncertainty particularly in respect of Government-related transactions, and to the cost of our newly recruited Capital Markets team in New York as we build our capability for the longer term.
Savills Investment Management transacted assets of over €5.5bn during 2017, which contributed to a performance in line with our expectations. Successful fund launches during the period bode well for the further development of this business in 2018.
In the current year, against the backdrop of heightened uncertainty over global economic prospects, geopolitical risks and rising interest rates, we expect some tempering of the strong transaction volumes of recent times in some markets. Accordingly our expectations for 2018 remain unchanged.
Savills will report 2017 full year results on 15 March 2018.
This announcement is being disclosed in accordance with the Market Abuse Regulation (EU596/2014) and has been determined to contain inside information in line with the definition therein.
Forward looking statements
Certain statements in this announcement are forward-looking statements relating to the Group’s operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors which could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group’s principal risks are described in the 2016 Savills plc Annual Report which can be viewed online at http://www.savills.com. Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made. No obligation is accepted to publicly revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required. Nothing in this Statement should be construed as a profit forecast.