Interim Management Statement

RNS Number : 8360G

Savills PLC

12 May 2014

 



12 May 2014

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, 33 Margaret Street, London, W1G 0JD, and provides the following Interim Management Statement (IMS) for the period to 12 May 2014.

During the first four months of the year Savills has traded as anticipated with continued growth in the UK, and a robust performance in both Asia and Continental Europe. Our US business has an improved pipeline and Cordea Savills, the Group's investment management business, has traded in line with our expectations of revenue and profit growth.

In the UK commercial markets Savills has continued to maintain a significant share of the Prime Central London investment and leasing markets, although, as anticipated, the shortage of supply of investment stock has become increasingly apparent. Growth in investment volume outside London has continued from last year and development activity has further increased. We continue to expect regional recovery to be the primary driver of growth for our UK commercial business in 2014.

The UK Prime Residential market has continued to perform well with year on year increases in both volume and value. As anticipated, we have lately seen some cooling in the Prime and Super Prime Central London market. In contrast, there remains strong demand for property in the £1 million-£2 million price segments of the North, East and South West London regions.  The regional UK residential market is continuing to recover with growing volumes and a significant increase in buyers registering with Savills.

In Asia Pacific, allowing for the material fall in trading volumes in Hong Kong in comparison with the same period last year, business has performed in line with expectations. Our Japanese business has continued to grow substantially as a result of the sustained strength of the Tokyo commercial  investment market during the period. In mainland China, despite a slow down in transaction markets, revenue and earnings have grown in line with our expectations thanks to the growth of our  Property Management business.

In Continental Europe, to date we have traded in line with our expectations, with strengthening performance in the transaction markets of Ireland, Spain, Germany and France.

Globally, our Consultancy business has experienced continued revenue growth with particular strengths in UK Development consultancy and UK/Continental European Valuation consultancy. The Property Management business has delivered a solid increase in revenue, particularly in the UK and in Asia where we continued to grow our market share in the core markets of Hong Kong and China.

Following a strong year of capital raising in 2013, Cordea Savills has grown revenue and profits in line with our expectations for the period to date, whilst continuing to experience significant capital inflows.

In the US, the existing Savills business has performed in line with expectations and our proposed acquisition of Studley Inc. was unanimously approved at the Studley Stockholder meeting held yesterday. Pending expiry of the Hart-Scott-Rodino Antitrust  notification period, it is anticipated that the transaction will be completed on 30^th May 2014.

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

 

END

 

 

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