Results for the half year ended 30 June 2016

Savills plc, the international real estate advisor, today announces its unaudited results for the six months ended 30 June 2016.

Key Financial Information

• Group revenue up 14% (10% in constant currency) to £622.7m (H1 2015: £547.0m)
• Group underlying profit* before tax up 11.5% (8% in constant currency) to £42.8m (H1 2015: £38.4m)
• Underlying basic earnings per share up 9% to 21.8p (H1 2015: 20.0p)
• Group profit before tax down 3% to £25.5m (H1 2015: £26.4m)
• Basic earnings per share down 1% to 11.6p (H1 2015: 11.7p)
• Interim dividend increased 10% to 4.4p per share (H1 2015: 4.0p)

*Underlying profit is a consistently calculated measure of underlying performance. It is calculated by adjusting reported pre-tax profit for certain non-recurring or exceptional items which are set out in Note 3 to the interim financial statements.

Highlights

• Transaction Advisory revenue up 5% as strong performances in Residential markets and in many of our international commercial markets offset the effect of lower UK commercial transaction volumes 
• Continued expansion in the US through bolt-on acquisitions and recruitment
• Global Property Management revenue up 23% 
• Consultancy revenue up 9% 
• Savills Investment Management revenue up 96%, assets under management increased 116% to €17.1bn (H1 2015: €7.9bn), reflecting the contribution from SEB acquired 31 August 2015.

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

“Savills has delivered a strong first half performance with revenue growth across the Group. The resilience of our less transactionally focused businesses, combined with our geographic diversity, more than offset reductions in transactional activity in certain markets.

In line with our overall growth strategy, we have continued to build on the Savills Studley platform in the US with significant recruitment and bolt-on acquisition activity across the country. In addition, we continue to investigate selective development opportunities for our businesses worldwide.

Looking to the second half, at this stage, in the traditionally quieter summer period and so soon after the EU Referendum result, it is not possible to obtain a clear read on the direction of activity in a number of the Group’s principal markets, although the fundamental attributes of real estate as an investment class remain strong.

Our substantial portfolio of less transactional businesses, significant overseas earnings and strong market shares in many of our most important transactional locations position the Group well, not only to withstand short term reductions in local activity, but also to capitalise on the opportunities which we expect to emerge.

The Board currently has no reason to change its expectations for the full year, although clearly the range of potential outcomes has broadened over recent weeks.”

Read the full half year results