AGM Statement

RNS Number : 0942L

Savills PLC

11 May 2022

 

11 May 2022

SAVILLS PLC

("Savills" or "the Company")

Trading update

Ahead of its Annual General Meeting (AGM) to be held at 12 noon today at  Savills, 33 Margaret Street, London W1G 0JD, Savills plc, the international real estate advisor issues the following trading update:

· Both our Transactional and Less Transactional businesses are performing in line with our expectations for the period to date

· The war in Ukraine, inflation and the rising interest rate cycle have somewhat tempered transactional activity, particularly in the smaller lot sizes both in terms of capital transactions and leasing take-up with activity skewed towards larger transactions

· Residential markets in the UK have performed well albeit stock availability continues to be significantly reduced compared with the equivalent prior year period

· Continued COVID and travel restrictions, particularly in Hong Kong and Mainland China have reduced activity in both the leasing and capital transaction markets

· Subject to exacerbation of current geopolitical risks and any potential further waves of COVID-related restrictions, the Board remains confident in its expectations for the full year

Mark Ridley, Chief Executive, commented: 

"2022 has presented a number of heightened macro-economic, geopolitical, supply chain and, in some locations, continued COVID-related risks both to investors and corporates and to people's personal lives. I am delighted with the responses of our people and our clients specifically in respect of support for Ukraine, but also for their resilient approach to doing business in challenging circumstances.  We have performed well so far this year and, with our strong balance sheet, we are continuing to undertake a variety of business development activities across the Group to further enhance our service to clients worldwide."

Trading Update

In the Asia Pacific region, the recovery has been most evident throughout the period in Singapore, Australia, Japan and Vietnam. Greater China, although below our original expectations for 2022, has performed resiliently in the face of continued significant COVID-related restrictions. Throughout the period, our substantial Property and Facilities Management business in the region has performed well.

In the UK, our performance has continued strongly, driven primarily by the continued high levels of activity in the transactional markets, albeit residential activity has, as anticipated, been somewhat lower than the unusually strong 2021 comparative period.  Our less transactional service lines have performed in line with our expectations to date. Overall, the UK has traded slightly better than anticipated.

In Continental Europe and the Middle East, where Savills is more dependent upon transactional activity, performance has improved compared with both the prior period and our original expectations for the year to date, although we remain conscious that supply chain issues (particularly energy), inflation and the rising interest rate environment pose a challenge to a number of European economies.

In North America, where the Group is substantially dependent upon leasing activity by corporate occupiers, our business performance has been in line with our expectations and has improved significantly over the prior comparative period.

Savills Investment Management has traded in line with our expectations, albeit in an environment where a number of markets and sectors remain challenging for the deployment of equity capital. Debt markets have remained highly attractive for investors and DRC Savills has performed well to date.

Outlook

Savills has traded well so far in 2022. There remains significant investor interest in the secure income characteristics of real estate and occupiers are progressively focussing on improving the sustainability characteristics of their portfolios as well as creating environments in which staff can thrive. These positive trends stand against a backdrop of geopolitical, economic, practical (supply chain) and, in some cases, COVID-related challenges.  

Whilst the Board is mindful of the backdrop, it remains confident in its expectations for 2022 as a whole.

We anticipate announcing the Group's Half Year Results for the six months to 30 June on 11th August 2022.  

For further information, contact:

Savills    020 7409 8934

Mark Ridley, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

Tulchan Communications                                                                  020 7353 4200

Mark Burgess

Elizabeth Snow

 

END

 

 

AGMFIFVTEDILLIF