Half Yearly Report Replacement

RNS Number : 6984J

Savills PLC

09 August 2012

 



9 August 2012

The following replaces the announcement 'Half Yearly Report' made on the 9 August 2012 at 07.00am under RNS Number: 6360J.

The reason for the replacement is to confirm that the interim dividend of 3.3p per share will be payable on 15 October 2012 to shareholders on the register on 14 September 2012.

The remainder of the announcement remains unchanged and is reproduced in full below.

Savills plc

("Savills" or "the Group")

RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2012

Savills plc, the international real estate advisor, today announces its results for the six months ended 30 June 2012.

Key Financial Information

·	Group revenue up 5% to £353.3m (2011: £335.8m)
·	Underlying Group profit before tax down 4% to £19.7m (2011: £20.6m)
·	Group profit before tax down 9% to £18.2m (2011: £20.0m)
·	Underlying basic earnings per share up 6% to 12.5p (2011: 11.8p)
·	Basic earnings per share down 4% to 11.5p (2011: 12.0p)
·	Interim dividend increased 5% to 3.3p per share (2011: 3.15p)

Operational Highlights

·	Strong growth across non-transactional businesses, now accounting for over 60% of Group revenues and profits, largely offsets the expected reduction in Transaction advisory earnings
·	Property and Facilities Management revenues up 12% driven by several new contract wins in the UK, Hong Kong, Mainland China, Korea and Vietnam; total area under management increased by 29% to 1.57bn sq ft
·	Transaction Advisory revenues down 4% following the expected lower volumes in Asia Pacific and UK (excl. Central London)
·	Good progress reducing losses in Europe, which have been cut by 26% despite the ongoing deterioration in market conditions
·	Cordea Savills Fund Management continues to perform well with Assets under Management up 18% to €4bn
·	Continued investment in the business through recruitment and acquisition

Commenting on the results, Jeremy Helsby, Group Chief Executive of Savills plc, said:

"I am pleased to report a better first half performance than we anticipated as a result of the continued growth of our Consultancy and Property Management businesses around the world, which now represent more than 60% of our income and profits, and the strength of our businesses in key transactional markets in the UK and Asia Pacific. In addition, despite the continued deterioration of European transaction markets, we have materially reduced losses in our Continental European businesses whilst continuing to invest in our core teams.

Looking to the second half, we currently see no material change in the overall outlook for our business. In Asia, we anticipate an improvement in activity levels in our principal markets. In the UK, the combination of the seasonal summer quiet period and the London Olympics means that it is still too early to predict the trading environment from September onwards. In Continental Europe, we expect transaction markets to remain unsettled in core markets and very subdued in southern Europe. In the US, we have a healthy pipeline of business.

We continue our stated strategy of underpinning our more cyclical transactional businesses with high quality Property Management, Consulting and Fund Management revenues, capitalising on our global reach and attracting the best talent during turbulent markets. This approach, together with the maintenance of a prudent capital structure, positions Savills well both to weather adverse market conditions and to benefit when markets improve."

For further information, contact:

Savills	020 7409 8934
Jeremy Helsby, Group Chief Executive
Simon Shaw, Group Chief Financial Officer
Tulchan Communications	020 7353 4200
Peter Hewer/Martha Kelly

Business review

The following table sets out Group revenue and underlying profit by operating segment:

Revenue	H1 2012 £m	H1 2011 £m	Change
Transaction Advisory	125.9	131.3	(4)%
Consultancy	72.3	62.8	15%
Property and Facilities Management	143.7	128.3	12%
Fund Management	11.3	10.5	8%
Other (including Financial Services)†	0.1	2.9	(97)%
Group revenue	353.3	335.8	5%

Underlying profit before tax	H1 2012 £m	H1 2011 £m	Change
Transaction Advisory	7.8	12.3	(37)%
Consultancy	4.9	2.7	81%
Property and Facilities Management	7.9	6.7	18%
Fund Management	1.8	1.8	0%
Other (including Financial Services)†	(2.7)	(2.9)	7%
Group underlying profit*	19.7	20.6	(4)%

*A reconciliation between statutory and underlying profit before tax is set out in Note 5.

† Includes 100% of Savills Private Finance Limited up to the sale of 80.01% of the company on 3 May 2011, nil thereafter.

The following table sets out Group revenue and underlying profit by geographical area:

Revenue	H1 2012 £m	H1 2011 £m	Change
United Kingdom	170.9	159.6	7%
Asia Pacific	148.2	140.6	5%
Continental Europe	31.6	29.3	8%
America	2.5	3.4	(26)%
Group (including Financial Services)†	0.1	2.9	(97)%
Group revenue	353.3	335.8	5%

Underlying profit before tax	H1 2012 £m	H1 2011 £m	Change
United Kingdom	16.3	16.4	0%
Asia Pacific	10.6	12.3	(14)%
Continental Europe	(3.5)	(4.7)	26%
America	(1.0)	(0.5)	(100)%
Group (including Financial Services)†	(2.7)	(2.9)	7%
Group underlying profit*	19.7	20.6	(4)%

*A reconciliation between statutory and underlying profit before tax is set out in Note 5.

† Includes 100% of Savills Private Finance Limited up to the sale of 80.01% of the company on 3 May 2011, nil thereafter.

 

Overview

The Group's results for the six months to 30 June 2012 show revenue up 5% to £353.3m (H1 2011: £335.8m), and underlying profit before tax of £19.7m, 4% lower than the first half of 2011 (H1 2011: £20.6m). Statutory Profit before tax was £18.2m, 9% lower than the first half of 2011 (H1 2011: £20.0m). At the beginning of the year we were anticipating a substantially greater reduction in profits in the first half as the weakening UK and Hong Kong commercial transaction markets, that we saw in the final quarter of 2011, continued into 2012. In the event, the excellent performance of our Consultancy and Property and Facilities Management businesses and the robust results of Savills Transaction Advisory operations in Asia Pacific and London, together with a reduction in losses in Continental Europe, underpinned a better than expected performance.

We have continued to invest in our business during the period through selective acquisitions and the recruitment of individuals and teams. In January we acquired International Property Asset Management GmbH, a German asset management business, which is now integrated into the Cordea Savills platform in Germany. Also in January we acquired Gresham Down Capital Partners LLP, which has improved our position in the commercial investment market in Central London. Alongside these acquisitions, we have continued to recruit teams and senior individuals across the business to strengthen our service offering.

On 9 May 2012, we reported that there were some signs of a slowing in activity in the Hong Kong and mainland Chinese markets. Three months on, it is clear that the cumulative effect of Government measures over the last 18 months, has successfully slowed the mainstream residential markets and, in some cases, the volume of commercial investment transactions.

 

Transaction Advisory

UK Residential

UK Residential Transaction fee income reduced by 5% to £45.7m (H1 2011: £47.9m). This comprised the net effect of stable development sales, a cooling of activity in secondary London sales, compared with the frenetic comparative period, and small rise in sales in the Country. The average London Agency transaction value remained broadly unchanged at £2.74m, while the average Country transaction value rose by 7% to £1.1m. At a time of considerable uncertainty, prime London residential markets have been seen as a haven for the world's investors. The resultant strong international demand drove the performance of prime development sales, with the highest quality product in central London continuing to attract significant interest. In recent weeks we have seen a more general reduction in activity although it is still too early to tell whether this is indicative of a longer term slow down or simply a short term hiatus caused, in part, by the Olympics and the holiday period.

UK Commercial

UK Commercial Transaction fee income grew 7% to £21.0m (H1 2011: £19.7m) reflecting the continuation of a strong market in Central London, with City and West End office investment volumes up 20% on H1 2011. This compensated for lower volumes traded elsewhere in the UK.  The acquisition of Gresham Down further enhanced our Central London and International capabilities and, overall, Savills enjoyed market leadership in acquisitions in the City office market. Outside London, markets were weaker than in 2011; however, we retained our strong position as a national agent. Commercial leasing markets generally remain sensitive to the uncertain climate for occupiers with the City vacancy rate climbing to 9% in the face of subdued demand, but limited new supply. Take-up was up 30% compared with H1 2011, but still below the long term average. By contrast, the West End remained robust with the vacancy rate unchanged at 4%.

Asia Pacific Commercial

Commercial Transaction fee income in Asia Pacific decreased by 5% to £35.5m (H1 2011: £37.3m). This was a stronger performance than anticipated, with growth in Macau, Taiwan and Japan partly compensating for the continuing weakness in many markets including China and Australia that commenced in Q4 2011. We anticipated the slow down in Greater China and continue to see the potential for recovery in the second half of the year, with some significant transactions in the pipeline for late Q3 and Q4.

Asia Pacific Residential

Residential Transaction fee income in Asia Pacific decreased by 23% to £8.1m (H1 2011: £10.5m). This decrease was primarily associated with an expected reduction of activity in Hong Kong and Vietnam, where we experienced significant declines. These falls were partially offset by growth in Singapore of just under 50%. The progressive effects of Government measures in the region over the last two years have had the desired effect of cooling the mainstream residential markets. While the Prime residential markets in which Savills operates have been less affected to date, they are clearly not immune to such measures or to uncertainty over economic conditions more generally.

Continental Europe

In Continental Europe, transaction fee income increased by 5% to £13.1m (H1 2011: £12.5m) against the backdrop of market volumes which declined by 16% compared with H1 2011. Macro-economic factors affecting the Euro and many of its constituent economies continued to have an adverse effect on investor sentiment, particularly in Southern Europe. However, our businesses in the Netherlands, Ireland and the Paris office agency team each delivered good revenue growth compared with H1 2011. Following the restructuring of Italy and Spain last year, we have actively managed the business in difficult market conditions to deliver a reduction in losses in line with our expectations.

US Commercial

Our US revenue decreased by 26% to £2.5m (H1 2011: £3.4m), primarily reflecting the timing difference of substantial transaction completions between the periods. The pipeline of business continued to strengthen particularly in the cross-border team, the new hospitality team and the healthcare business.

Overall, the underlying profits of our Transaction Advisory business as a whole decreased 37% to £7.8m during the period (H1 2011: £12.3m) driven primarily, as anticipated, by the weakening of the UK market outside London and certain Asia Pacific markets, offset by the reduction in losses in Continental Europe.

 

Consultancy

Consultancy Revenue	H1 2012 £m	H1 2011 £m	Change %
UK	53.7	46.1	16
Asia Pacific	13.0	11.7	11
Continental Europe	5.6	5.0	12
Total	72.3	62.8	15

Consultancy fee income increased in the period by 15% to £72.3m (H1 2011: £62.8m). In the UK, which represented revenue of over £53m, strong performances in valuation, building consultancy, project management and planning contributed to this performance.

In Continental Europe our valuation consultancy in Berlin helped drive 12% growth in overall European consultancy revenue to £5.6m (H1 2011: £5.0m). In Asia Pacific, the overall increase of 11% to £13.0m (H1 2011: £11.7m) came through growth in Greater China, Korea and Vietnam.

Property and Facilities Management

Property & Facilities Management Revenue	H1 2012 £m	H1 2011 £m	Change %
Asia Pacific	91.6	81.1	13
UK	39.2	35.4	11
Continental Europe	12.9	11.8	9
Total	143.7	128.3	12

The Property and Facilities Management business increased global revenues by 12% to £143.7m (H1 2011: £128.3m). This reflected a strong revenue performance in Asia, up 13% to £91.6m (H1 2011: £81.1m), with Hong Kong growing by 9% and China by 12% on the back of new contract wins and growth in asset management fee income in Japan. In Continental Europe, revenue growth in Sweden offset reductions in the Netherlands and Germany to deliver overall net revenue growth of 9% to £12.9m (H1 2011: £11.8m). In the UK, revenue grew by 11% to £39.2m (H1 2011: £35.4m) as the effect of contract wins continued to come through.

Savills total area under management increased by 29% to 1.57bn sq ft (H1 2011: 1.22bn sq ft) driven primarily by net contract wins in Hong Kong, Mainland China, Korea and Vietnam.

Profits in the Property and Facilities Management business increased by just under 18% to £7.9m (H1 2011: £6.7m) as revenue growth improved profitability, despite the pressure of rising staff costs in China.

Overall the Property and Facilities Management business represented 41% of Group revenue (H1 2011: 38%) and continued to provide high quality recurring earnings to the Group.

Fund Management

Fee income from Fund Management increased by 8% in the period to £11.3m (H1 2011: £10.5m). Cordea Savills core funds have continued to perform well with good inflows into the flagship funds. In addition, Cordea Savills had a first closing of its new Prime London Residential Development Fund. The cost of business development and specialist recruitment in debt and equity management resulted in underlying profits remaining flat during the period. Assets under Management (AUM) rose to €4.0bn (H1 2011 €3.4bn).

Other (including Financial Services)

This segment represents the Group's residual interest in financial services and other costs, expenses and net interest income not directly attributable to the operating activities of the Group's business segments in the period. The net result of unallocated costs of £2.7m was an improvement of 7% on the same period last year (H1 2011:  £2.9m).

Earnings, financial strength and dividends

The Group's underlying pre-tax profit margin in the period was slightly lower at 5.6% (H1 2011: 6.1%) primarily reflecting the higher proportionality of lower margin property management business rather than transaction business in the period. Basic earnings per share for the six months to 30 June 2012 decreased by 4% to 11.5p (2011: 12.0p). Underlying earnings per share were up 6% to 12.5p (2011: 11.8p). Basic earnings per share in 2011 included net gains of £2.4m on the disposals of 80.01% of Savills Private Finance Limited and a 7.3% minority investment in Pinnacle Group, a PFI and infrastructure business.

The impact of foreign exchange movements on the profits of our globally diversified business was not material. On a constant currency basis underlying profit before tax would have been 1% lower at £19.5m.

At 30 June 2012, the balance sheet remained strong with net cash of £5.7m (30 June 2011: £25.9m) and £74.3m of credit facilities of which £29.9m was un-utilised.

The Board has declared an interim dividend of 3.3p per share (2011: 3.15p) reflecting the improved performance of the non-transactional businesses, but recognising the reduction in Group profits overall. The performance of the Group's Transaction Advisory businesses will be taken into account in the consideration of any proposed final ordinary or supplemental interim distributions alongside the results for the full year.

The interim dividend of 3.3p per share will be payable on 15 October 2012 to shareholders on the register on 14 September 2012.

Principal risks and uncertainties

The key risks and uncertainties relating to the Group's operations remain consistent with those disclosed in the Group's Annual Report and Accounts 2011. Please refer to pages 19 and 20 thereof or to our investors' page on www.savills.com. In addition, specific risks which might affect the outlook for the second half are disclosed in the Summary and Outlook statement below.

Board changes

In accordance with the intentions stated in our Annual Report and Accounts 2011, Clare Hollingsworth joined the Board as an additional independent Non-Executive Director on 2 April 2012 and Tim Ingram retired from the Board on 9 May 2012 at the conclusion of the AGM. We thank Tim for his contribution and support over the last ten years, latterly as Senior Independent Director. Martin Angle replaced Tim as the Senior Independent Director.  

Summary and outlook

Savills has delivered a better first half performance than we anticipated as a result of the continued growth of our Consultancy and Property Management businesses around the world, which now represent more than 60% of our income and profits, and the strength of our businesses in key transactional markets in the UK and Asia Pacific. In addition, despite the continued deterioration of European transaction markets, we have materially reduced losses in our Continental European businesses whilst continuing to invest in our core teams.

Looking to the second half, we currently see no material change in the overall outlook for our business. In Asia, we anticipate an improvement in activity levels in our principal markets. In the UK, the combination of the seasonal summer quiet period and the London Olympics means that it is still too early to predict the trading environment from September onwards. In Continental Europe, we expect transaction markets to remain unsettled in core markets and very subdued in southern Europe. In the US, we have a healthy pipeline of business.

We continue our stated strategy of underpinning our more cyclical transactional businesses with high quality Property Management, Consulting and Fund Management revenues, capitalising on our global reach and attracting the best talent during turbulent markets. This approach, together with the maintenance of a prudent capital structure, positions Savills well both to weather adverse market conditions and to benefit when markets improve.

Jeremy Helsby                           Peter Smith
Group Chief Executive                  Chairman

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors confirm that this condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

●	an indication of important events that have occurred during the first six months and their impact on the condensed consolidated interim financial information and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
●	material related party transactions in the first six months of the financial year and any material changes in the related party transactions described in the last Annual Report.

The Directors are responsible for the maintenance and integrity of the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors of Savills plc are listed in the Savills plc Report and Accounts for the year ended 31 December 2011. A list of current Directors is maintained on the Savills plc website: www.savills.com.

By order of the Board

Jeremy Helsby, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

8 August 2012

Forward-Looking Statements

The financial information contained in this announcement has not been audited. Certain statements made in this announcement are forward-looking statements. Undue reliance should not be placed on such statements, which are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.

The Company accepts no obligation to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.

Independent review report to Savills plc

Introduction

We have been engaged by the Company to review the condensed consolidated financial statements in the half-yearly financial report for the six months ended 30 June 2012, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP

Chartered Accountants

London

8 August 2012

SAVILLS plc

CONSOLIDATED INCOME STATEMENT

for the period ended 30 June 2012

		Six months	Six months	Year ended
		to 30 June	to 30 June	31 December
		2012	2011	2011
		(unaudited)	(unaudited)	(audited)
Notes		£m	£m	£m
Revenue	4	353.3	335.8	721.5
Less:
Employee benefits expense		(222.5)	(218.4)	(458.8)
Depreciation		(3.5)	(3.5)	(7.1)
Amortisation and impairment of goodwill and other intangible assets		(1.9)	(2.2)	(9.1)
Other operating expenses		(110.1)	(96.2)	(213.4)
Other operating income		0.3	0.3	0.5
Profit on disposal of subsidiaries and available-for-sale investments		-	2.4	2.3
Operating profit		15.6	18.2	35.9
Finance income		0.6	0.7	1.4
Finance costs		(0.5)	(0.7)	(1.3)
		0.1	-	0.1
Share of post-tax profit from associates and joint ventures		2.5	1.8	4.0
Profit before income tax		18.2	20.0	40.0
Income tax expense	6	(4.0)	(5.3)	(13.2)
Profit after income tax		14.2	14.7	26.8

Attributable to:

Owners of the Company		14.3	14.7	26.5
Non-controlling interests		(0.1)	-	0.3
		14.2	14.7	26.8

Earnings per share

Basic earnings per share	8(a)	11.5p	12.0p	21.5p
Diluted earnings per share	8(a)	11.1p	11.4p	20.9p

Underlying earnings per share

Basic earnings per share	8(b)	12.5p	11.8p	29.0p
Diluted earnings per share	8(b)	12.0p	11.2p	28.2p

SAVILLS plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the period ended 30 June 2012

	Six months	Six months	Year ended
	to 30 June	to 30 June	31 December
	2012	2011	2011
	(unaudited)	(unaudited)	(audited)
	£m	£m	£m
Profit for the period	14.2	14.7	26.8
Other comprehensive income
Fair value gain/(loss) on available-for-sale investments	-	0.5	(0.9)
Actuarial gain/(loss) on defined benefit pension scheme	2.1	2.8	(20.3)
Tax on items relating to components of other comprehensive income	(0.6)	(1.0)	5.0
Currency translation differences	(2.8)	1.3	0.1
Other comprehensive (loss)/income for the period, net of tax	(1.3)	3.6	(16.1)
Total comprehensive income for the period	12.9	18.3	10.7
Total comprehensive income attributable to:
Owners of the company	13.0	18.2	10.4
Non-controlling interests	(0.1)	0.1	0.3
	12.9	18.3	10.7

SAVILLS plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

at 30 June 2012

		30 June	30 June	31 December
		2012	2011	2011
		(unaudited)	(unaudited)	(audited)
Notes		£m	£m	£m
Assets: Non-current assets
Property, plant and equipment		18.8	18.5	18.4
Goodwill		137.5	140.1	135.6
Other intangible assets		16.6	19.0	16.9
Investments in associates and joint ventures		13.8	11.6	13.8
Deferred income tax assets		27.3	23.0	29.4
Available-for-sale investments		14.2	15.7	14.4
Non-current receivables		2.3	3.4	3.0
		230.5	231.3	231.5
Assets: Current assets
Work in progress		4.7	3.9	4.2
Trade and other receivables		184.9	157.2	191.2
Current income tax receivable		3.1	4.3	0.8
Derivative financial instruments		0.2	-	0.1
Cash and cash equivalents		50.2	53.7	80.0
		243.1	219.1	276.3
Liabilities: Current liabilities
Borrowings	12	44.5	26.4	6.3
Derivative financial instruments		0.1	0.3	0.1
Trade and other payables		139.2	145.3	208.7
Current income tax liabilities		5.9	4.9	6.7
Employee benefit obligations	11	5.6	6.6	6.7
Provisions for other liabilities and charges		2.8	8.7	11.1
		198.1	192.2	239.6
Net current assets		45.0	26.9	36.7
Total assets less current liabilities		275.5	258.2	268.2
Liabilities: Non-current liabilities
Borrowings	12	-	1.4	0.1
Derivative financial instruments		-	0.2	-
Trade and other payables		8.7	8.7	9.0
Retirement and employee benefit obligations	11	37.3	22.8	43.1
Provisions for other liabilities and charges		17.5	8.3	9.5
Deferred income tax liabilities		1.9	3.0	2.1
		65.4	44.4	63.8
Net assets		210.1	213.8	204.4

Equity: Capital and reserves attributable to owners of the Company
Share capital		3.3	3.3	3.3
Share premium		85.3	85.2	85.3
Other reserves		20.9	25.6	23.6
Retained earnings		101.7	100.9	93.4
		211.2	215.0	205.6
Non-controlling interests		(1.1)	(1.2)	(1.2)
Total equity		210.1	213.8	204.4

SAVILLS plc

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the period ended 30 June 2012

	Attributable to owners of the Group
	Share	Share	Other	Retained		Non-controlling	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2012	3.3	85.3	23.6	93.4	205.6	(1.2)	204.4
Profit for the period	-	-	-	14.3	14.3	(0.1)	14.2
Other comprehensive income/(loss):
Actuarial gain on defined benefit pension scheme	-	-	-	2.1	2.1	-	2.1
Tax on items directly taken to reserves	-	-	0.1	(0.7)	(0.6)	-	(0.6)
Currency translation differences	-	-	(2.8)	-	(2.8)	-	(2.8)
Total comprehensive (loss)/income for the period	-	-	(2.7)	15.7	13.0	(0.1)	12.9
Transactions with owners:
Employee share option scheme:
- Value of services provided	-	-	-	5.5	5.5	-	5.5
Purchase of treasury shares	-	-	-	(1.6)	(1.6)	-	(1.6)
Dividends	-	-	-	(12.8)	(12.8)	-	(12.8)
Adjustment to deferred consideration on prior year acquisition of non-controlling interests	-	-	-	1.4	1.4	-	1.4
Transactions with non-controlling interests	-	-	-	0.1	0.1	0.2	0.3
Balance at 30 June 2012 (unaudited)	3.3	85.3	20.9	101.7	211.2	(1.1)	210.1

	Attributable to owners of the Group
	Share	Share	Other	Retained		Non-controlling	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2011	3.3	84.0	24.2	98.9	210.4	(1.3)	209.1
Profit for the period	-	-	-	14.7	14.7	-	14.7
Other comprehensive income/(loss):
Fair value gain on available-for-sale investments	-	-	0.5	-	0.5	-	0.5
Actuarial gain on defined benefit pension scheme	-	-	-	2.8	2.8	-	2.8
Tax on items directly taken to reserves	-	-	(0.3)	(0.7)	(1.0)	-	(1.0)
Currency translation differences	-	-	1.2	-	1.2	0.1	1.3
Total comprehensive income for the period	-	-	1.4	16.8	18.2	0.1	18.3
Transactions with owners:
Employee share option scheme:
- Value of services provided	-	-	-	5.9	5.9	-	5.9
Purchase of treasury shares	-	-	-	(8.1)	(8.1)	-	(8.1)
Issue of share capital	-	1.2	-	-	1.2	-	1.2
Dividends	-	-	-	(12.4)	(12.4)	-	(12.4)
Transactions with non-controlling interests	-	-	-	(0.2)	(0.2)	-	(0.2)
Balance at 30 June 2011 (unaudited)	3.3	85.2	25.6	100.9	215.0	(1.2)	213.8

	Attributable to owners of the Group
	Share	Share	Other	Retained		Non-controlling	Total
	capital	premium	reserves	earnings	Total	interests	equity
	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2011	3.3	84.0	24.2	98.9	210.4	(1.3)	209.1
Profit for the year	-	-	-	26.5	26.5	0.3	26.8
Other comprehensive income/(loss):
Fair value loss on available-for-sale investments	-	-	(0.9)	-	(0.9)	-	(0.9)
Actuarial loss on defined benefit pension scheme	-	-	-	(20.3)	(20.3)	-	(20.3)
Tax on items directly taken to reserves	-	-	0.2	4.8	5.0	-	5.0
Currency translation differences	-	-	0.1	-	0.1	-	0.1
Total comprehensive income/(loss) for the year	-	-	(0.6)	11.0	10.4	0.3	10.7
Transactions with owners:
Employee share option scheme:
- Value of services provided	-	-	-	11.3	11.3	-	11.3
Purchase of treasury shares	-	-	-	(10.1)	(10.1)	-	(10.1)
Issue of share capital	-	1.3	-	-	1.3	-	1.3
Dividends	-	-	-	(16.3)	(16.3)	(0.6)	(16.9)
Non-controlling interest arising on business combination	-	-	-	-	-	0.5	0.5
Transactions with non-controlling interests	-	-	-	(1.4)	(1.4)	(0.1)	(1.5)
Balance at 31 December 2011 (audited)	3.3	85.3	23.6	93.4	205.6	(1.2)	204.4

SAVILLS plc

CONSOLIDATED STATEMENT OF CASH FLOWS

for the period ended 30 June 2012

		Six months to 30 June 2012 (unaudited)	Six months to 30 June 2011 (unaudited)	Year ended 31 December 2011 (audited)
Notes		£m	£m	£m
Cash flows from operating activities
Cash (used in)/generated from operations	9	(35.3)	(20.9)	47.1
Interest received		0.5	0.5	1.1
Interest paid		(0.4)	(0.6)	(1.0)
Income tax paid		(6.2)	(7.0)	(11.5)
Net cash (used in)/generated from operating activities		(41.4)	(28.0)	35.7
Cash flows from investing activities
Proceeds from sale of property, plant and equipment		0.6	0.1	0.2
Proceeds from sale of associates, joint ventures and available-for-sale investments		-	1.9	2.0
Cash outflow in relation to disposal of subsidiaries, net of cash disposed		-	(0.7)	(1.4)
Dividends received from joint ventures and associates		2.5	1.6	1.9
Repayment of loans by associates, joint ventures and subsidiaries		0.2	0.2	0.7
Loans to associates and joint ventures		-	(0.1)	(2.3)
Acquisition of subsidiaries, net of cash acquired		(2.8)	(6.0)	(7.2)
Deferred consideration paid in relation to prior year acquisitions		(3.9)	(1.0)	(1.3)
Consideration received in relation to prior year disposals		0.7	-	-
Purchase of property, plant and equipment		(4.2)	(5.1)	(9.2)
Purchase of intangible assets		(0.9)	(0.5)	(1.2)
Purchase of investment in associates, joint ventures and available-for-sale investments		(0.5)	(0.3)	(2.0)
Net cash used in investing activities		(8.3)	(9.9)	(19.8)
Cash flows from financing activities
Proceeds from issue of share capital		-	1.2	1.3
Proceeds from borrowings		49.0	29.5	29.5
Purchase of own shares for Employee Benefit Trust		(1.6)	(8.1)	(10.1)
Transactions with non-controlling interests		0.2	(0.2)	(1.5)
Deferred consideration paid to non-controlling interests in relation to prior year acquisitions		(3.4)	(2.2)	(2.4)
Repayments of borrowings		(10.5)	(12.0)	(33.8)
Dividends paid		(12.8)	(12.4)	(16.9)
Net cash generated from/(used in) financing activities		20.9	(4.2)	(33.9)
Net decrease in cash, cash equivalents and bank overdrafts		(28.8)	(42.1)	(18.0)
Cash, cash equivalents and bank overdrafts at beginning of period		78.8	96.5	96.5
Effect of exchange rate fluctuations on cash held		(0.8)	(1.6)	0.3
Cash, cash equivalents and bank overdrafts at end of period		49.2	52.8	78.8

NOTES

1. General information

The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ.

This condensed consolidated interim financial information was approved for issue by the Board of Directors on 8 August 2012.

This condensed consolidated interim financial information does not comprise statutory financial statements within the meaning of section 434 of the Companies Act 2006. Statutory financial statements for the year ended 31 December 2011 were approved by the Board of Directors on 14 March 2012 and delivered to the Registrar of Companies.  The auditors' report on these accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under section 498 of the Companies Act 2006.

This condensed consolidated interim financial information has been reviewed, not audited.

2. Basis of preparation

This condensed consolidated interim financial information for the half-year ended 30 June 2012 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with IFRSs as adopted by the European Union.

Going concern

The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its agreed facilities. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its condensed interim financial statements.

3. Accounting policies

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those financial statements.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

The following amendment is mandatory for the first time for the financial year beginning 1 January 2012:

− IFRS 7 (amendment), 'Financial instruments: Disclosures' on derecognition - transfers of financial assets. It is not expected to result in a material impact on the Group's financial statements.

Other standards, amendments and interpretations effective for the first time for the financial year beginning 1 January 2012 and not discussed above are not relevant to the Group.

4. Segment analysis

Six months to 30 June 2012	Transaction Advisory	Consult-ancy	Property & Facilities Manage-ment	Fund Manage-ment	Other	Total
	£m	£m	£m	£m	£m	£m
Revenue
United Kingdom
- Commercial	21.0	41.2	30.0	11.3	0.1	103.6
- Residential	45.7	12.5	9.2	-	-	67.4
Total United Kingdom	66.7	53.7	39.2	11.3	0.1	171.0
Continental Europe	13.1	5.6	12.9	-	-	31.6
Asia Pacific
- Commercial	35.5	13.0	91.6	-	-	140.1
- Residential	8.1	-	-	-	-	8.1
Total Asia Pacific	43.6	13.0	91.6	-	-	148.2
America	2.5	-	-	-	-	2.5
Total revenue	125.9	72.3	143.7	11.3	0.1	353.3
Underlying profit/(loss) before tax
United Kingdom
- Commercial	0.3	2.8	2.5	1.8	(2.7)	4.7
- Residential	6.8	1.2	0.9	-	-	8.9
Total United Kingdom	7.1	4.0	3.4	1.8	(2.7)	13.6
Continental Europe	(2.7)	(0.1)	(0.7)	-	-	(3.5)
Asia Pacific
- Commercial	2.7	1.0	5.2	-	-	8.9
- Residential	1.7	-	-	-	-	1.7
Total Asia Pacific	4.4	1.0	5.2	-	-	10.6
America	(1.0)	-	-	-	-	(1.0)
Underlying profit/(loss) before tax	7.8	4.9	7.9	1.8	(2.7)	19.7

Six months to 30 June 2011	Transaction Advisory	Consult-ancy	Property & Facilities Manage-ment	Fund Manage-ment	Other	Total
	£m	£m	£m	£m	£m	£m
Revenue
United Kingdom
- Commercial	19.7	33.9	27.5	10.5	0.1	91.7
- Residential	47.9	12.2	7.9	-	2.8	70.8
Total United Kingdom	67.6	46.1	35.4	10.5	2.9	162.5
Continental Europe	12.5	5.0	11.8	-	-	29.3
Asia Pacific
- Commercial	37.3	11.7	81.1	-	-	130.1
- Residential	10.5	-	-	-	-	10.5
Total Asia Pacific	47.8	11.7	81.1	-	-	140.6
America	3.4	-	-	-	-	3.4
Total revenue	131.3	62.8	128.3	10.5	2.9	335.8
Underlying profit/(loss) before tax
United Kingdom
- Commercial	1.1	1.4	2.3	1.8	(3.2)	3.4
- Residential	8.1	0.9	0.8	-	0.3	10.1
Total United Kingdom	9.2	2.3	3.1	1.8	(2.9)	13.5
Continental Europe	(3.4)	(0.5)	(0.8)	-	-	(4.7)
Asia Pacific
- Commercial	4.3	0.9	4.4	-	-	9.6
- Residential	2.7	-	-	-	-	2.7
Total Asia Pacific	7.0	0.9	4.4	-	-	12.3
America	(0.5)	-	-	-	-	(0.5)
Underlying profit/(loss) before tax	12.3	2.7	6.7	1.8	(2.9)	20.6
Year ended 31 December 2011	Transaction Advisory	Consult-ancy	Property & Facilities Manage-ment	Fund Manage-ment	Other	Total
	£m	£m	£m	£m	£m	£m
Revenue
United Kingdom
- Commercial	47.9	79.5	60.3	20.8	0.6	209.1
- Residential	95.0	27.9	17.5	-	2.8	143.2
Total United Kingdom	142.9	107.4	77.8	20.8	3.4	352.3
Continental Europe	26.0	11.1	28.4	-	-	65.5
Asia Pacific
- Commercial	80.2	24.9	172.4	-	-	277.5
- Residential	19.9	-	-	-	-	19.9
Total Asia Pacific	100.1	24.9	172.4	-	-	297.4
America	6.3	-	-	-	-	6.3
Total revenue	275.3	143.4	278.6	20.8	3.4	721.5
Underlying profit/(loss) before tax
United Kingdom
- Commercial	4.6	7.8	4.3	4.7	(8.1)	13.3
- Residential	14.8	3.1	2.2	-	0.3	20.4
Total United Kingdom	19.4	10.9	6.5	4.7	(7.8)	33.7
Continental Europe	(8.8)	(0.1)	(0.7)	-	-	(9.6)
Asia Pacific
- Commercial	11.2	1.8	10.9	-	-	23.9
- Residential	3.8	-	-	-	-	3.8
Total Asia Pacific	15.0	1.8	10.9	-	-	27.7
America	(1.4)	-	-	-	-	(1.4)
Underlying profit/(loss) before tax	24.2	12.6	16.7	4.7	(7.8)	50.4

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Group Executive Board.

The Other segment includes costs and other expenses at holding company and subsidiary levels, which are not directly attributable to the operating activities of the Group's business segments. For 2011 this segment also includes financial services up to the date of the disposal of Savills Private Finance Limited. Financial services added £2.9m of revenue and £0.3m of underlying profit to Other for the six months ended June 2011.

A reconciliation of underlying profit before tax to reported profit before tax is provided in Note 5.

5. Underlying profit before tax

	Six months	Six months	Year ended
	to 30 June	to 30 June	31 December
	2012	2011	2011
	£m	£m	£m
Reported profit before tax	18.2	20.0	40.0
Adjustments:
- Amortisation and impairment of intangible assets (excluding software)	1.2	1.9	2.6
- Impairment of goodwill and intangible assets	-	-	5.4
- Impairment of investment in associate	-	-	2.0
- Share-based payment adjustment	0.3	1.1	0.8
- Restructuring costs	-	-	1.9
- Profit on disposal of subsidiaries and available-for-sale investments	-	(2.4)	(2.3)
Underlying profit before tax	19.7	20.6	50.4

The Directors regard the above adjustments necessary to give a fair picture of the underlying results of the Group for the period.

The adjustment for share-based payment relates to the impact of the accounting standard for share-based compensation. The annual bonus is paid in a mixture of cash and deferred shares and the proportions can vary from one year to another. Under IFRS the deferred share element is amortised to the income statement over the vesting period whilst the cash element is expensed in the year. The adjustment above addresses this by adding to or deducting from profit the difference between the IFRS 2 charge and the effective value of the annual share award in order better to match the underlying staff costs in the year with the revenue recognised in the same period.

6. Income tax on profit

The income tax expense has been calculated on the basis of the underlying rate in each jurisdiction adjusted for any disallowable charges.

	Six months	Six months	Year ended
	to 30 June	to 30 June	31 December
	2012	2011	2011
	£m	£m	£m
United Kingdom
- Current tax	4.0	4.6	11.7
- Deferred tax	(1.5)	(1.6)	(2.8)
Foreign tax
- Current tax	1.7	2.7	6.2
- Deferred tax	(0.2)	(0.4)	(1.9)
Income tax expense	4.0	5.3	13.2

The Group effective tax rate is 22.0% (30 June 2011: 26.5%), which is lower than the UK standard effective annual rate of corporation tax of 24.5% (30 June 2011: 26.5%). This reflects lower foreign tax rates in the period offsetting the permanent disallowable expenses. The Group underlying effective tax rate is 21.8% (30 June 2011: 29.6%).

7. Dividends	Six months	Six months	Year ended
	to 30 June	to 30 June	31 December
	2012	2011	2011
	£m	£m	£m
Amounts recognised as distribution to equity holders in the year:
Ordinary final dividend of 6.35p per share (2011: 6p)	7.8	7.4	7.4
Supplemental interim dividend of 4p per share (2011: 4p)	5.0	5.0	5.0
Interim dividend of 3.15p per share	-	-	3.9
	12.8	12.4	16.3

Proposed interim dividend for the six months ended 30 June 2012

4.1

The Board has declared an interim dividend for the six months ended 30 June 2012 of 3.30p per ordinary share (2011: 3.15p) to be paid on 15 October 2012 to shareholders on the register on 14 September 2012. The interim dividend has not been recognised in these interim financial statements. It will be recognised in shareholders' equity in the year to 31 December 2012.

8. Basic and diluted earnings per share
(a) Basic and diluted earnings per share
	Earnings	Shares	EPS	Earnings	Shares	EPS
Six months to 30 June	2012	2012	2012	2011	2011	2011
	£m	million	Pence	£m	million	Pence
Basic earnings per share	14.3	124.2	11.5	14.7	123.0	12.0
Effect of additional shares issuable under option	-	4.7	(0.4)	-	6.3	(0.6)
Diluted earnings per share	14.3	128.9	11.1	14.7	129.3	11.4
				Earnings	Shares	EPS
Year to 31 December				2011	2011	2011
				£m	m	Pence
Basic earnings per share				26.5	123.3	21.5
Effect of additional shares issuable under option				-	3.4	(0.6)
Diluted earnings per share				26.5	126.7	20.9

(b) Underlying basic and diluted earnings per share
	Earnings	Shares	EPS	Earnings	Shares	EPS
Six months to 30 June	2012	2012	2012	2011	2011	2011
	£m	million	Pence	£m	million	Pence
Basic earnings per share	14.3	124.2	11.5	14.7	123.0	12.0
- Amortisation and impairment of intangible assets (excluding software) after tax	1.0	-	0.8	1.4	-	1.1
- Share-based payment adjustment after tax	0.2	-	0.2	0.8	-	0.7
- Profit on disposal of subsidiaries and available-for-sale investments	-	-	-	(2.4)	-	(2.0)
Underlying basic earnings per share	15.5	124.2	12.5	14.5	123.0	11.8
Effect of additional shares issuable under option	-	4.7	(0.5)	-	6.3	(0.6)
Underlying diluted earnings per share	15.5	128.9	12.0	14.5	129.3	11.2
				Earnings	Shares	EPS
Year to 31 December				2011	2011	2011
				£m	million	Pence
Basic earnings per share				26.5	123.3	21.5
- Amortisation of intangibles (excluding software) after tax				2.1	-	1.7
- Impairment of goodwill and intangible assets after tax				5.4	-	4.4
- Impairment of investment in associate after tax				2.0	-	1.6
- Share-based payment adjustment after tax				0.6	-	0.5
- Restructuring costs after tax				1.4	-	1.2
- Profit on disposal of subsidiary				(2.3)	-	(1.9)
Underlying basic earnings per share				35.7	123.3	29.0
Effect of additional shares issuable under option				-	3.4	(0.8)
Underlying diluted earnings per share				35.7	126.7	28.2

	Six months	Six months	Year ended
9. Cash generated from operations	to 30 June	to 30 June	31 December
	2012	2011	2011
	£m	£m	£m
Profit for the period	14.2	14.7	26.8
Adjustments for:
Income tax (Note 6)	4.0	5.3	13.2
Depreciation	3.5	3.5	7.1
Amortisation of intangibles and impairment of assets	1.9	2.2	3.7
Loss on sale of property, plant and equipment	-	-	0.3
Impairment of goodwill and intangible assets	-	-	5.4
Profit on disposal of subsidiaries and available-for-sale investments	-	(2.4)	(2.3)
Net finance income	(0.1)	-	(0.1)
Share of post tax profit from associates and joint ventures	(2.5)	(1.8)	(4.0)
Decrease in employee and retirement obligations	(4.3)	(1.1)	(3.5)
Exchange movements on operating activities	(0.5)	-	(0.2)
(Decrease)/increase in provisions	(0.3)	0.4	4.2
Credit for defined benefit pension scheme	(0.3)	(0.4)	(1.0)
Impairment of associated undertaking and available-for-sale investments included within operating income	-	-	2.0
Charge for share-based compensation	5.5	5.9	11.3
Operating cash flows before movements in working capital	21.1	26.3	62.9
Increase in work in progress	(0.5)	(0.3)	(0.6)
Decrease/(increase) in trade and other receivables	5.0	21.9	(9.5)
Decrease in trade and other payables	(60.9)	(68.8)	(5.7)
Cash (used in)/generated from operations	(35.3)	(20.9)	47.1

10. Business combinations

Gresham Down Capital Partners LLP

On 5th January 2012 the Group acquired the specialist central London investment and asset management business Gresham Down Capital Partners. The business provides investment advisory and brokerage advice focusing primarily on the Central London Commercial property market, as well as asset management services, and will strengthen the existing Central London presence.

Consideration of £1.6m was paid on completion, with a further total of £1.4m payable across the subsequent four anniversaries subject to service conditions and with the last instalment conditional on achieving revenue targets. Goodwill and other intangible assets of £0.9m and £0.7m have been provisionally determined. Goodwill represents synergies that the Group expects to gain as a result of the acquisition.

IFRS 3 (revised) has been applied to this acquisition which was accounted for using the acquisition method. Acquisition related costs for this transaction were negligible.

International Property Asset Management GmbH

On the 20 January 2012 Cordea Savills acquired International Property Asset Management GmbH (IPAM), a German real estate asset management company. The acquisition complements and expands our existing German business and investment platform.

Total consideration is provisionally determined at £3.4m, of which £2.3m was paid on completion. Contingent consideration may become payable in 2012 and 2013 based on the actual performance of the business. Goodwill on acquisition of £2.1m has been provisionally determined, and is attributable to key staff and their industry reputation. Other intangible assets of £0.3m have been identified and relate to asset management contracts.

IFRS 3 (revised) has been applied to this acquisition which was accounted for using the acquisition method. Acquisition related costs of £0.3m are included in the income statement.

11. Retirement and employee benefit obligations

Defined benefit plan

All current pension assumptions are detailed in the Group's Annual Report and Accounts 2011 and are the same as at 31 December 2011 except for the following: 

	Six months	Six months	Year ended
	to 30 June	to 30 June	31 December
	2012	2011	2011
Discount rate	4.85%	5.70%	4.90%
Salary increases	4.50%	4.50%	4.50%
Inflation assumption	2.90%	3.70%	3.10%
Rate of increase to pensions in payment accrued between 6 April 1997 and 5 April 2005	2.90%	3.60%	3.10%
Rate of increase of deferred pensions accrued after 5 April 2001	2.00%	2.20%	2.20%
Amounts recognised in the Statement of Financial Position are:	£m	£m	£m
Fair value of plan assets	137.1	125.2	129.0
Present value of funded obligations	(166.8)	(141.2)	(164.6)
Deficit (included in Retirement and employee benefit obligations in Statement of Financial Position)	(29.7)	(16.0)	(35.6)
Related deferred tax asset	7.1	4.2	8.9
Net liability	(22.6)	(11.8)	(26.7)

The Pension Plan of Savills (the Plan) provided final salary pension benefits to some employees, but was closed with regard to future service-based benefit accrual with effect from 31 March 2010. From 1 April 2010, pension benefits for former members of the Plan are provided through the Group's defined contribution Personal Pension Plan.

Included in Retirement and employee benefit obligations is £13.2m relating to holiday pay and long service leave (30 June 2011: £13.4m, 31 December 2011: £14.2m).

12. Borrowings

Movements in borrowings are analysed as follows:				£m
Opening amount as at 1 January 2012				6.4
Additional borrowings				49.0
Repayments of borrowings (including overdrafts)				(10.7)
Exchange rate fluctuations				(0.2)
Closing amount as at 30 June 2012				44.5
	30 June	30 June	31 December
	2012	2011	2011
Current	£m	£m	£m
Bank overdrafts	1.0	0.9	1.2
Unsecured bank loans due within one year or on demand	43.4	25.0	5.0
Loan notes	-	0.4	-
Finance leases	0.1	0.1	0.1
	44.5	26.4	6.3
Non-current
Unsecured bank loans	-	1.3	-
Finance leases	-	0.1	0.1
	-	1.4	0.1
	30 June	30 June	31 December
	2012	2011	2011
The Group has the following undrawn borrowing facilities:	£m	£m	£m
Floating rate
- expiring within one year or on demand	21.9	15.1	13.5
- expiring between 1 and 5 years	8.0	30.0	50.0
	29.9	45.1	63.5

The multi-currency revolving credit facility expires on 31 March 2014. A £15m increase in the facility, from £50m to £65m, for the remainder of the term of the facility has been agreed with Barclays and will be effective from August 2012.

13. Related party transactions

As at 30 June 2012, loans outstanding to associates and joint ventures amounted to £3.6m (2011: £2.0m).

14. Contingent liabilities

In common with comparable professional services businesses, the Group is involved in a number of disputes in the ordinary course of business. Provision is made in the financial statements for all claims where costs are likely to be incurred and represents the cost of defending and concluding claims. The Group carries professional indemnity insurance and no separate disclosure is made of the cost of claims covered by insurance as to do so could seriously prejudice the position of the Group.

15. Seasonality

A significant percentage of our revenue is seasonal which has historically caused our revenue, profits and cash flow from operating activities to be lower in the first half and higher in the second half of each year. The concentration of revenue and cash flow in the fourth quarter is due to an industry-wide focus on completing transactions toward the calendar year end.

SHAREHOLDER INFORMATION

Like many other listed public companies, we will no longer be issuing a hard copy of the Half Year Report to shareholders.

This announcement together with the attached financial statements and notes may be downloaded from the investor relations section of the Company website at www.savills.com

 

END

 

 

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