Savills : Interim Results August 2010

RESULTS FOR THE HALF YEAR TO 30 JUNE 2010

Savills plc, today announces its unaudited results for the six months to 30 June 2010.
Key Financial Information:

● Group revenue increased 23% (22% in constant currency) to £304.4m (2009: £247.6m)
● Group profit before tax recovered to £14.4m (2009: £0.1m)
● Underlying Group profit before tax* grew to £17.2m (2009: £2.5m)
● Basic earnings per share increased to 7.9p (2009: 0.7p)
● Underlying basic earnings per share increased to 9.6p (2009: 1.3p)
● Interim dividend of 3.0p per share (2009: 3.0p)
● Net cash of £20.1m (2009: net debt £0.4m)
* After adjusting for certain share based payments £1.4m (2009: £1.0m) and the amortisation of acquired intangible assets £1.4m (2009: £1.4m)
Operational Highlights:
● Strong first half performances in Asia Pacific and the UK
● Restructuring achieves a 54% reduction in Continental European losses to £4.0m (H1 2009: £8.6m)
● Strong growth in Transaction Advisory revenues (up 57%), Consultancy (up 12%) and Property and Facilities Management (up 8%)
● Increased investment in the business with acquisitions in Fund Management, Project Management and the opening of further residential offices in London

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

“We have had a strong first half particularly through the recovery of transaction markets in the UK and Asia Pacific, which are core to the Group’s success. At the same time we have substantially reduced losses in the Continental European business and are seeing some improvement in the US market.
Looking to the second half, factors such as the Chinese Government’s desire to contain overheating in the residential market, continued concerns over economic growth in many countries and prolonged low levels of debt availability indicate that the recovery is likely to flatten off during the coming months. Since Q4 2009 we have consistently maintained a cautious outlook for the second half of 2010, and with such uncertainties remaining we currently have no reason to change that view.

Over the last two years we have successfully restructured and re-positioned Savills businesses to address the market conditions that they face, and we are now well placed to take advantage of business opportunities as they arise.”

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source : Savills