Savills Grows Revenue, Profits, But Future Uncertain

Savills plc said that both its group revenue and underlying profit were up in its preliminary results for the full year ended 31 December 2018.

The company said that group revenue rose 10% to reach £1.76bn and underlying profit rose 2% to £143.7m.

Mark Ridley, Group Chief Executive, said: “Savills delivered both revenue and underlying profit growth in 2018, driven by a robust second half of the year. In addition to maintaining or growing our share of transactional markets, the performance of our less transactional business lines was key to this performance.

“We have made a solid start to 2019; however, the year ahead is overshadowed by macro-economic and political uncertainties across the world. It is difficult accurately to predict the impact of these issues on corporate expansionary activity and investor demand for real estate. At this stage, we expect to see declines in transaction volumes in a number of markets and growth in our less transactional business lines; accordingly we retain our expectations for the Group’s performance in 2019.”

UK and particularly London-based estate agencies have been forecasting uncertain future prospects for some time now. However the fact that Savills – a global real estate advisor – seems to be similarly despondent about the future is significant.

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Source London Stock Exchange
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