AGM Statement and Interim Management Statement

RNS Number : 9646C

Savills PLC

09 May 2012

 



9 May 2012

SAVILLS PLC

("Savills" or "the Company")

AGM Statement and Interim Management Statement

Savills plc, the international real estate advisor, is today holding its Annual General Meeting (AGM) at 12 noon, 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ and provides the following Interim Management Statement (IMS) for the period to 9 May 2012.

During the first four months of the year Savills has traded overall in line with our expectations. The first quarter saw the anticipated slower markets in Asia, a robust performance from the UK Residential business and continued strengthening of our US pipeline. The UK Commercial business performed well, particularly in central London. The markets of Continental Europe continue to be weak and, against the backdrop of increasing political and economic uncertainty, transactions are taking longer to complete or being put on hold.

London's attractions as an investment location remain firmly established. Fiscal changes announced in this year's budget had a short term effect on transaction volumes in the Prime Residential market in London, but they appear to have substantially recovered. Continued political and economic turbulence in many parts of the world has maintained investor interest in London's prime residential property. Outside London we have seen an increase in the volume of activity in the UK Country market both in terms of new stock and applicants. In the residential markets of Greater China and Singapore transaction volumes have been subdued, as anticipated, at this stage in the year.

The acquisition of Gresham Down LLP in January has supported our Commercial transaction business in Prime Central London, which has out-performed our expectations during the period and reduced the impact of relative weakness in commercial markets outside London. In Greater China, particularly in the established markets of Shanghai and Beijing, our commercial transaction advisory pipelines have continued to build strongly, supported by the attention of investors and developers progressively turning to office investment from residential assets. It is too early to call a recovery in Hong Kong, but the banking market has recommenced lending on commercial investment, albeit at relatively modest levels, and this bodes well for our performance in the second half of the year.

Globally, our Consultancy and Property Management businesses have continued to deliver strong revenue and profit growth and Cordea Savills, the Group's fund management business, has performed as anticipated. The Group continues to manage a strong balance sheet.

We continue to anticipate that our financial performance in 2012 will be weighted towards the second half of the year.

For further information, contact:

Savills    020 7409 8844

Jeremy Helsby, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

Tulchan Communications    020 7353 4200

Peter Hewer

 

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