14 March 2013
Preliminary Results Report for the year ended 31 December 2012
Savills plc, the international real estate adviser, today announces a strong performance across the Group reflecting improving markets and the positive impact of prior years’ acquisitions and appointments
Key financial highlights
- Group revenue up 12% to £806.4m (2011: £721.5m)
- Group underlying profit before tax* up 21% to £60.8m (2011: £50.4m)
- Group profit before tax up 36% to £54.2m (2011: £40.0m)
- Underlying basic EPS up 22% to 35.3p (2011: 29.0p)
- Total dividend for the year up 19%. Final ordinary and supplementary interim dividends total 12.7p per share (2011: 10.35p) taking the total dividend for the year to 16.0p per share (2011: 13.5p)
* Underlying profit is calculated on a consistent basis in accordance with note 5 to the preliminary statement
Key operational highlights
- Group performance benefiting from strategic acquisitions and recruitment during the past few years which are delivering market share gains and margin improvements in core markets
- Transaction Advisory revenues up 13% and underlying profit before tax up 36% driven by strong performance in Asia Pacific and an improved share of Prime Central London commercial transactions; UK Residential business remains strong with revenues up 2%
- Record year in Asia Pacific business with profits up 18% to £32.6m
- Continuing strong growth across Savills non-transactional businesses with Consultancy revenues up 20% and Property and Facilities Management revenues up 8%
- Cordea Savills revenues up 13% on AUM up 29% to €4.4bn, through the combination of acquisition, new mandates, fund launches and inflows into existing funds
Commenting on the results, Jeremy Helsby, Group Chief Executive, said:
“I am delighted to report a strong set of results from the Group in 2012 with record revenues up 12% and profits up 21%. Our positions in both prime commercial and residential markets have enabled us to benefit from improving transaction volumes through 2012, particularly in the final quarter in Asia and the UK. We have reduced the losses in Continental Europe and our Investment Management business grew assets under management substantially. The changes we have made to our business over the last few years, including acquisitions, recruitment and restructuring, have improved the Group’s underlying profit margin.
We have made a strong start to 2013, particularly in the UK and Asia, and we expect to make further progress across the Group in the year ahead. We anticipate delivering continued improvements in our businesses in Continental Europe and the US although we are mindful of the risk of further weakness in some of these markets. Our Investment Management business has a good pipeline of funds to invest through its European platform. In Asia, whilst we anticipate that the most recent in a succession of control measures imposed in Mainland China and Hong Kong will have an impact on transaction volumes towards the second half of the year, the medium and long term characteristics of these markets remain compelling.
In summary, we have started 2013 more strongly than last year and we are confident in the Group’s prospects for the coming period.”
For further information, contact:
Savills, 0203 107 5444
Jeremy Helsby, Group Chief Executive
Simon Shaw, Group Chief Financial Officer
Tulchan Communications, 0207 353 4200
There will be an analyst presentation today at 9.30am at UBS, 1 Finsbury Avenue, London EC2M 2PP
A video interview with Jeremy Helsby, Group CEO will be available from 11.00am today at www.savills.com
View the Preliminary Results in PDF format.
View the Preliminary Results Presentation in PDF format.
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