Savills plc, the international real estate advisor, announced record results as the Group benefits from market share growth in key markets and its broad spread of services across the globe.
Key financial highlights
- Group revenue up 13% to £1,445.9m (£1,355.3m in constant currency*, 2015: £1,283.5m)
- Underlying profit** up 12% to £135.8m (£126.8m in constant currency*, 2015: £121.4m)
- Group profit before tax up 1% to £99.8m (2015: £98.6m)
- Underlying profit margin stable at 9.4% (2015: 9.5%)
- Underlying basic EPS up 15% to 72.5p (2015: 63.2p)
- Total dividends for the year up 12% to 29.0p per share (2015: 26.0p)
- Total ordinary dividend up 21% to 14.5p and supplementary dividend up 3.6% to 14.5p
* Revenue and underlying profit for the year are translated at the prior year exchange rates to provide a constant currency comparative.
** Underlying profit before tax (‘underlying profit’) is calculated on a consistently reported basis in accordance with Note 3 to this Preliminary Statement.
Key operating highlights
The strength of our key commercial market positions, growth in Investment Management and the resilience of our residential businesses led to an improved performance for Savills in 2016.
- Transaction Advisory revenues up 7% driven by market share gains in Asia Pacific, particularly China, and strong growth in Continental European markets
- 52% growth in profits in Continental Europe following improved market conditions, improved Investment Management performance and the benefit of business development activity in recent years
- Further consistent growth from less transactional services – Property Management revenue up 21%; Consultancy revenue up 4%
- Savills Investment Management revenues and profits up over 60% in first full year of ownership of the former SEB Asset Management business
- Continued acquisitions of complementary businesses and teams across all regions to enhance service offering to clients
Commenting on the results, Jeremy Helsby, Group Chief Executive, said:
“Overall, Savills delivered another record performance in 2016 despite the geopolitical distractions in some of our markets. We benefited from the scale of our operations across the globe, which have grown substantially over recent years, as well as a highly resilient performance in the UK.
Our less transactional businesses, particularly Property Management and Investment Management grew strongly while our global Transaction Advisory business produced a solid performance despite variable conditions in many markets.
We entered 2017 with a continuation of global macro-economic concerns, rising bond yields, uncertainty over the impact of Brexit negotiations in the UK and Continental Europe and a new administration in the US.
Savills is a strong and diverse global firm and we continue to look at opportunities to develop our business. We have started the year well and our expectations for the full year remain unchanged.”