Savills PLC shares dropped 8.6% to 906p on Thursday in spite of the estate agency increasing its dividend by almost a third as full-year results landed in line with expectations.

The FTSE 250-listed firm told the market yesterday that revenue increased by 7% in the year ended 31 December, hitting £2.4bn from £2.24bn in 2023.

Underlying profit before tax rose 38% to £130.4m, while reported profit before tax rose 59% to £88.3m.

Underlying basic earnings per share increased by 31% to 66.2p.

CEO Mark Ridley 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.”

Despite the share price drop, Peel Hunt analysts said that Savills “remains a quality business” and is “poised for a healthy recovery as commercial transition activity returns to normal”.

“We continue to like the business model and believe it remains an attractive investment,” analysts Clyde Lewis and Sam Cullen said. Peel Hunt maintained its target price of 1,100p.