Property group Savills reports 21% rise in annual profits
- Credit: Archant
Property firm Savills today reported a 21% rise in annual pre-tax profits to £84.7million and said it had made a solid start to 2015.
But it added that its performance this year was likely to be weighted towards the second half due to the timing of the recovery in the Hong Kong commercial market and uncertaintyh in the UK residential market over the outcome of the General Election.
Group revenues for the year to December 31 rose by 19% to £1.078billion, with underlying pre-tax profits rising 34% to £110.5m
The year saw the group’s United States business boosted by the acquisition of Studley Inc, which it said had traded strongly since its conversion to the Savills Studley brand, and its operations in continental Europe returned to profi amid improved market conditions.
Jeremy Helsby, Savills group chief executive, said: “This was a strong year for Savills with revenues surpassing £1bn, a record for our group, as we benefited from the diversity of revenue streams we have across the globe.
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“Our acquisition of Studley has performed strongly and has transformed our US capability, providing a significant platform to grow our operations under the new Savills Studley brand.
“In Asia, the expected lower transaction volumes in Hong Kong, mainland China and Singapore were more than offset by strong performances across other regions. We achieved record revenues in the UK and our European operations also returned to profitability.
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We have made a solid start to 2015 with performance in line with management expectations. We retain a cautious view on the timing of the recovery in the Hong Kong commercial market and expect the UK residential market to remain subdued as a result of uncertainty around the General Election.
“We expect that these factors will lead to a greater than usual weighting of our performance towards the second half of the year. However, the strength of our enhanced US operation, the scope of our UK business and the breadth of our Asia Pacific coverage together with further improvement in Continental Europe, all position Savills well for the future.”
Mark Oliver, head of office at Savills in Ipswich, said 2014 had been “a busy and productive year” for the office.
“The regional property markets are now catching up with the strong activity that has been seen in London and the South East and we are looking forward to a busy 2015,” he added.