Strong profit growth in challenging environment
Summary results
|
|
31-Dec-24 |
31-Dec-23 |
Change |
|
Group revenue |
£2.40bn |
£2.24bn |
7% |
|
Underlying profit before tax* |
£130.4m |
£94.8m |
38% |
|
Reported profit before tax |
£88.3m |
£55.4m |
59% |
|
Underlying basic EPS* |
66.2p |
55.1p |
20% |
|
Reported basic EPS |
39.4p |
30.0p |
31% |
|
Total dividend per share |
30.2p |
22.8p |
32% |
|
Net cash** |
£176.3m |
£157.1m |
12% |
* Underlying profit before tax ('underlying profit') and underlying basic 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 to this Preliminary Statement. Underlying EPS is calculated using underlying profit, with the weighted average number of shares remaining the same as the GAAP measure.
** Net cash reflects cash and cash equivalents net of borrowings and overdrafts in the notional pooling arrangement (see Note 8).
Key highlights:
- Group revenue up 7% (10% in constant currency), with operational leverage, principally in the Transactional Advisory business, driving 38% underlying profit growth (40% in constant currency).
- Good revenue growth across most business lines:
- Strong performance from Global Transactional Advisory with revenues up 13% (16% in constant currency);
- Global Residential revenues increased 6% (6% in constant currency);
- Good performance from Consultancy and Property and Facilities Management, which grew revenues by 8% (9% in constant currency) and 5% (7% in constant currency), respectively.
- Savills Investment Management revenue decreased 11% as anticipated. Assets under management decreased slightly to £21.7bn (2023: £22.1bn) as the effect of new capital raised was outweighed by valuation adjustments during the period.
Commenting on the results, Mark Ridley, Group Chief Executive of Savills plc, said:
“Savills improved performance in 2024 reflects the robust earnings provided by our less transactional businesses together with the effect of our inherent operating leverage in the early recovery of transactional markets.
Most markets were in recovery as we entered 2025 and, whilst uncertainty continues, there remains the expectation of reductions in the cost of capital during the year.
We expect re-financing driven activity and the trend towards corporates requiring greater office attendance for staff to continue to be positive for transaction volumes. Savills remains well positioned to deliver against the Group’s strategic objectives of broadening our offering to clients across geographies and service lines, supported by a strong balance sheet and thus driving profitability as market recovery continues.”