Savills reports rise in revenues but small drop in profits as it warns of difficult year to come

Savills this morning announced a rise in revenue but a drop in profits.

Its group revenue for last year was up 10% at £1.76bn, but pre-tax profits were down 3% at £109.4m.

In the UK, its residential business bucked competitors, with exchanges up 1%, helping to offset a 2% fall in average sales value. In prime central London, its exchanges were up 4%, although average values declined by 4%. Outside London, transactions and values remained flat last year. Overall, however, the UK residential business was 6% down in underlying profits.

Altogether, the UK residential business made revenues of £209.7m last year, with an underlying pre-tax profit of £27.2m. The figures compared with £204.3m and £28.2m respectively for 2017.

The global business also warned that while it had made a “solid” start to 2019, “the year ahead is overshadowed by macro-economic and political uncertainties across the world”.

It forecast declines in transaction volumes in a number of markets.

Savills is set to pay a final dividend for last year of 10.8p, alongside an interim dividend of 15.6p.

This morning’s results also show that Savills paid £3m for the purchase of Currell, an agency in east London, with a further £3.5m payable over the next three years.

The report says that last year, Savills made a “small additional investment” in online estate agency Yopa to support its growth, saying that it had already grown to become the sixth largest UK estate agent. Savills’ investment in Yopa is its largest to date “in the field of emerging technology”, says the report.

LSL in its annual results wrote down the value of its investment in Yopa by 61%.

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3 Comments

  1. Hillofwad71

    Yopa mere bagatelle  for the mighty Savills as they power away to produce  yet another rippling set of results.Men for All Seasons.Countrywide-eat your heart out

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  2. GPL

     

    Fair play to Savills, they have to work for their money. Their YOPA support is a poor decision in my view however they coin in the millions so my view is mere bubble-gum on their highly polished soles.

    In contrast Rightmove coin in millions by just providing Online Advertising, basically **** all else.

    Which business is the smarter? You decide.

     

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  3. GPL

    Ros….. can you sort your Word Censorship please as F E C K ALL is NOT the other ???? ALL

     

    Thanks fecking much.

     

     

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