Savills plc, the international real estate advisor, has announced its unaudited results for the six months ended 30 June 2015.
Key Financial Information:
Group revenue up 27% (25% in constant currency) to £547.0m (H1 2014: £430.8m)
Group underlying profit before tax up 28% (24% in constant currency) to £38.4m (H1 2014: £30.1m)
Group profit before tax up 7% to £26.4m* (H1 2014: £24.7m)
Underlying basic earnings per share up 16% to 20.0p (H1 2014: 17.2p)
Basic earnings per share down 17% to 11.7p* (H1 2014: 14.1p)
Interim dividend increased 7% to 4.0p per share (H1 2014: 3.75p)
* Includes the impact of provision for deferred consideration on acquisitions which is disallowable for income tax purposes
Highlights:
Transaction Advisory revenue growth of 55% as strong performances in US, UK
Commercial and Asia Pacific offset weaker UK Residential activity
US revenues up substantially given significant contribution from Savills Studley combined with good underlying growth. Several bolt-on acquisitions completed in the period
Global Property Management revenue increased by 13%
Consultancy revenue up 3% with good level of work in progress for H2
Savills Investment Management revenue growth of 10% (14% in constant currency), assets under management increased 25% to €7.9bn (H1 2014: €6.3bn) and SEB acquisition expected to close shortly
Commenting on the results, Jeremy Helsby, Group Chief Executive of Savills plc, said: “Savills has delivered a strong first half performance as a result of the contribution from Savills Studley in the US and the strength of our existing businesses in key transactional markets of the UK and Asia. Our performance in these markets mitigated the effect of the pre-election slowdown in the UK Residential market, where, lately, we have seen activity levels starting to improve.
In line with our US growth strategy, we have continued to build on the Savills Studley platform in the US with three bolt-on acquisitions and recruitment across the country. In addition we have bolstered our rural business in the UK through the acquisition of Smiths Gore and look forward to the near term completion of the acquisition of SEB Asset Management AG.
Looking to the second half, we currently see no significant change in the overall outlook for our business. Our core markets continue to be highly demand-driven as a result of the continued substantial capital allocation to real estate around the world. Furthermore, in many markets we are now seeing rental growth and increased occupier confidence. Savills is well placed to act on the opportunities arising from occupier and investor demand globally.
The Board remains confident in its expectations for the full year.”
Chris Potts, head of Savills Cardiff, comments: “The Savills Cardiff office has continued to secure high profile instructions across all departments, including the sales and marketing of the Cardiff Pointe new homes development. Demand is high for grade A offices, residential schemes, student housing and increasingly for private rented sector development opportunities.”