Strong performance at Savills

INTERNATIONAL property adviser Savills yesterday reported 30% growth in underlying earnings for 2005 following a strong performance across all sectors of the market.

Underlying profits before tax increased from £43.9million in 2004 to £57.2million last year, on underlying revenue - stripping out trading property sales - up 18% from £316.6million to £373.9million.

Reported revenue was up 14% and bottom line pre-tax profits edged ahead from £58.3million to £58.6million. The final dividend will be 16p per share, up 28% from 12.5pps last time.

Savills chairman Peter Smith said: “Savills has had an excellent year and I am delighted to report a strong set of results following good performances from all of our operating businesses.

“Confidence in investment markets remains strong and the residential prime markets are resilient. We have enjoyed a positive start to the year and with the increasing range of services we offer and geographical regions in which we operate, we are confident that the group is well placed to have a satisfactory 2006.”

William Stanton, head of Savills in the eastern region, said: “Last year saw steady residential turnover with a distinct increase in activity during the usually quieter winter months. 2006 has been exceptionally busy across the region, demand fuelled by City bonuses, a possible lowering of interest rates and renewed optimism.

“There is a promising outlook for the commercial market in the east which has remained robust. Local markets in key locations such as Norwich, Bury St Edmunds and Ipswich have performed very well with good levels of take up and a consolidation of rental levels.

“Meanwhile the region's commercial investment market witnessed an unprecedented level of transactions in 2005 and the continuing strength of the economy coupled with a benign interest rate regime suggests 2006 will see continued healthy demand.”