Savills has reported a rise in revenue and underlying profit before tax for the six months ended 30 June 2024, citing the early stages of market recovery for its “improved performance”.
The group’s revenue increased 5% to £1,063.2m in the first half of the year and its underlying profit before tax jumped 30% to £21.2m. Its reported profit before tax rose by 48% to £8.9m and the company said it would pay an interim dividend of 7.1p – a 3% increase.
Its results were boosted by a 9% increase in transaction advisory revenue, a 4% rise in property and facilities revenue and a 3% increase in consultancy revenue.
However, Savills Investment Management’s revenue was down 10%, which the company said reflected “continued weakness” of key markets in continental Europe.
Mark Ridley, group chief executive of Savills, said: “Our improved performance in the first half reflects the positive effects of early recovery phases in a number of our markets, as well as the robust and growing earnings provided by our less transactional businesses. Whilst we have seen resilience in prime commercial leasing markets, global capital transaction volumes remain subdued, although activity is recovering in certain markets.
“Against this backdrop, we have continued to invest in growing our business and further enhancing the strength and diversity of the group, including the expansion of our global prime residential services, whilst improving our net cash position year-on-year. We have improved transaction pipelines in many locations and, with our core bench strength in place to support clients, Savills is well positioned to benefit as markets progressively recover through the next 12-18 months. Our expectations for the current year remain unchanged.”
