Savills plc, the international real estate advisor, today announces its unaudited results for the six months ended 30 June 2024.
Summary results:
|
|
H1 2024 |
H1 2023* |
Change |
|
Revenue |
£1,063.2m |
£1,011.4m |
5% |
|
Underlying profit before tax** |
£21.2m |
£16.3m |
30% |
|
Reported profit before tax |
£8.9m |
£6.0m |
48% |
|
Underlying basic earnings per share** |
12.1p |
9.2p |
32% |
|
Reported basic earnings per share |
6.1p |
3.5p |
74% |
|
Interim dividend |
7.1p |
6.9p |
3% |
|
Net cash*** |
£34.0m |
£12.8m |
166% |
*See Note 14 for details of prior period restatements in relation to a measurement period adjustment in accordance with IFRS 3.
** Underlying profit before tax (‘underlying profit’) and underlying basic earnings per share (‘underlying EPS’) are alternative performance measures used to assess the performance of the Group. Underlying profit is calculated on a consistently reported basis in accordance with Note 3 and Note 7 to the Interim Financial Statements. Underlying EPS is calculated using underlying profit, with the weighted average number of shares remaining the same as the GAAP measure (see Note 10(b)).
*** Net cash reflects cash and cash equivalents net of borrowings and overdrafts in the notional pooling arrangement (see Note 18).
Key highlights:
- Transaction Advisory revenue up 9% with signs of market recovery
- Less transactional businesses performed well in aggregate with revenue up 3%
- Property and Facilities Management revenue up 5%, Consultancy revenue up 3%
- Savills Investment Management revenue down 10% reflecting continued weakness of key markets in continental Europe
- Business development activity supported by strong balance sheet, positioning the Group well for gradual recovery of global markets
Commenting on the results, Mark Ridley, Group Chief Executive of Savills plc, 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.”