Preliminary statement of results for the full year ended 31 December 2011
15 March 2012
Savills plc, the international real estate advisor, today announces a strong performance across the Group despite the anticipated slowdown in transaction volumes in Asia and difficult economic conditions in parts of Continental Europe
Key financial highlights
- Group revenue up 7% to £721.5m (2010: £677.0m)
- Underlying Group profit before tax* up 7% to £50.4m (2010: £47.3m)
- Group profit before tax up 9% to £40.0m (2010: £36.8m)
- Total Dividend for the year up 4%. Final ordinary and supplementary interim dividends total 10.35 pence per share (2010: 10p) taking the total dividend for the year to 13.5 pence per share (2010: 13p)
* calculated on a consistent basis in accordance with note 5 to the preliminary statement
- Continued strength in prime residential property; UK Residential transaction profits up 11% driven by strength in London
- Significant increase in revenue (+14%) and profit (+16%) from Global Property and Facilities Management business with a 23% increase in total area under management
- Profits in Mainland China (Ex. Hong Kong) increase by 43% to £7.3m (2010: £5.1m)
- Significant profit growth (+38%) at Cordea Savills, the Fund Management business
- Market share gains in Hong Kong and UK Commercial despite the reduced transaction market activity and consequential reduction in profits
- Sustained improvement in performance from transaction business in the United States
- New management team in Continental Europe took further restructuring action
- Completion of several complementary acquisitions of businesses and teams to further extend service and geographic offering
Commenting on the results, Jeremy Helsby, Group Chief Executive, said:
"I am pleased to report a strong performance overall by Savills in variable global markets in 2011. Our positions in London and Asia, in both the Residential and Commercial markets, and a strong and growing non-transactional business provided the platform for this performance. Added to this, the relative recovery in our US business and strong profit growth in Cordea Savills enabled us to withstand the challenges in Continental Europe. We remain focused on reducing our losses in Continental Europe while at the same time supporting expansion in the core markets of France and Germany. Challenging markets can provide attractive expansion opportunities and we have been able to open additional offices in London, Germany, China, and the East and West Coast markets of the US.
We continued to progress our strategy, investing in both our transactional and non-transactional businesses through targeted recruitment and selective acquisitions as well as developing our brand strength as leading advisers in the Commercial and Prime Residential markets.
2012 has started well albeit that we anticipate a continuation of challenging transaction market conditions in the first half, with greater market confidence emerging to improve financial performance during the second half of the year.We anticipate further recovery in the US, relative stability in the prime Central London Residential and Commercial businesses and continued growth in Fund Management. In Asia, we expect a somewhat reduced volume of transactions but the impact of this should be largely mitigated by further growth in China and in our non-transactional businesses across the region. In Continental Europe it is not yet possible to see through to a sustained recovery; however, assuming the macro-economic situation remains largely unchanged, we expect to improve performance in the region in the current year.
Subject to unforeseen circumstances, we anticipate performing in line with expectations for the full year."
Chief Executive Officer Plc Central Management
Savills Margaret Street
+44 (0) 20 7409 8947
Chief Financial Officer Plc Central Management
Savills Margaret Street
+44 (0) 20 3107 5420