Interim Results
Savills PLC
19 December 2000
Pre-tax profits up 20% at Savills
Savills plc, the international property advisers, today
announced interim results for the six months ended 31 October 2000.
* Group turnover for the six months was up 71% at £109.9m
(1999 - £64.1m).
* Group pre-tax profit was up 20% at £10.6m (1999 - £8.8m).
* Earnings per share before amortisation of goodwill were
up 14% at 13.3p (1999 - 11.7p).
* Basic earnings per share were up 4% at 11.8p (1999 -
11.3p).
Richard Jewson, Chairman of Savills plc, comments: 'These
results reflect the growth and international development of
the Group with strong contributions from our businesses in
Asia Pacific and mainland Europe.
'The Group continues to trade strongly as we approach the end
of the year. Nervous stock markets suggest that confidence
may be tested in what seems likely to be an election year in
the UK, but your Board is confident that our strategy of
building an international property services business through
acquisition and partnership will deliver secure, long-term
returns for shareholders.
'We believe our investments in Savills Finance Holdings will
bear fruit over the next two years and continue to look for
development opportunities to exploit our strong balance
sheet.'
*** Chairman's Statement and Interim Results follow ***
Savills plc. Registered in England No. 2122174. Registered
Office 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ
For further information, contact:
Savills 020 7499 8644
Richard Jewson, Chairman
Aubrey Adams, Group Chief Executive
Grandfield 020 7417 4170
Michael Henman
Harry Hunt
CHAIRMAN'S STATEMENT
RESULTS AND DIVIDEND
I am pleased to announce that profit before tax for the six
months ended 31 October 2000 was up 20% at £10.6m (1999 -
£8.8m). Basic earnings per share, following the issue of
7.8m new shares in April 2000, were 11.8p (1999 - 11.3p).
Earnings per share before amortisation of goodwill were 13.3p
(1999 - 11.7p). Turnover was up 71% at £109.9m (1999 -
£64.1m). The balance sheet shows cash of £23.9m.
In view of the change of year-end to 31 December, the
Directors will be recommending a final dividend in respect of
the full eight month period from 1 May 2000 to 31 December
2000, which will be determined on a pro-rata basis and is
expected to follow our progressive dividend policy.
Therefore, no interim dividend is being paid. On this basis
the Board expects that the final dividend will be not less
than 6p net per share, which would represent a pro-rata
increase of 20% over the dividend of 7.5p for the full 12
months ended 30 April 2000.
TRADING REVIEW
These results reflect the growth and international development
of the Group with strong contributions from our businesses in
Asia Pacific and mainland Europe.
The loss for the period within Savills Finance Holdings group
includes losses of £1.2m in NetMortgage Limited and £0.5m in
Batley Mills Limited, reflecting respectively the costs of
developing our financial services business and the initial
launch costs for the Yorkshire Mill Village. Operating profit
directly reflects these additional costs and accordingly is at
a similar level to last year.
The traditional surveying businesses in the UK performed well
during the period although, as we indicated in September, the
heated residential market of the previous year has now returned
to more normal levels of turnover.
The range of property services now provided, together with the
enhanced geographical spread, have reduced the Group's exposure
to market cycles and have resulted in a greater proportion of
repeat income from management and corporate outsourcing in
particular.
PROPERTY SERVICES
UK Agency
The commercial agency business continued to produce excellent
results on the back of strong markets in both leasing and
investment. On the residential side there has been a return to
more normal market conditions in the UK with a better balance
between supply and demand but there is still a strong market
for quality.
UK Professional
All professional departments continue to expand their business
as demand for high quality consultancy advice increases.
International
Asia Pacific
FPDSavills Asia Pacific Limited, acquired in April 2000, has
performed in line with expectations and we continue to look at
new areas to develop this business in the region.
TrammellCrowSavills
The joint venture with Trammell Crow Company, formed in June
2000, has made a good start in developing new business
opportunities and is currently in detailed negotiations on two
major European deals.
Mainland Europe
The offices in mainland Europe performed strongly and further
investment is being made to develop the businesses.
FINANCIAL SERVICES
Our retail financial services group has continued to develop.
Savills Private Finance has expanded its geographic and adviser
base substantially. We have made significant investment in
NetMortgage, our on line mortgage search and select facility,
which now supports a number of other major Internet portals.
Yorkshire Mill Village, the retail outlet complex in Batley,
was successfully launched by Grosvenor Hill Ventures in October
2000.
Savills Finance continues to develop now that The Schroders
Residential Property Unit Trust, to which it is Fund Operations
Adviser, is fully established and as other opportunities arise.
BOARD
We were pleased to welcome Charles McVeigh to the Board as a
Non-Executive Director with effect from 1 August 2000. Charles
is co-Chairman of Schroder Salomon Smith Barney Holdings Inc, a
member of Citigroup, and brings an invaluable global
perspective to our business.
As announced in October, Jeremy Helsby will succeed Justin
Roberts as Chairman of FPDSavills Commercial Limited with
effect from 1 January 2001 and Justin will stand down as an
Executive Director on 31 December 2000. He will continue in
his executive position within the Group as a director of
FPDSavills Commercial Limited, where he will focus on the
investment business and also have special responsibility for
developing property management services. We are most grateful
to Justin for the significant contribution he has made to the
development of the Group during his seven years as an Executive
Director.
In addition, we recently announced that Victoria Mitchell will,
at her own request, be stepping down from the Board at the end
of the year but happily remains with the Group as a consultant.
Victoria has made a unique contribution during her 33 years
service, not least in the development of the London region and
of our international business.
OUTLOOK
The Group continues to trade strongly as we approach the end
of the year. Nervous stock markets suggest that confidence
may be tested in what seems likely to be an election year in
the UK, but your Board is confident that our strategy of
building an international property services business through
acquisition and partnership will deliver secure, long-term
returns for shareholders.
We believe our investments in Savills Finance Holdings will
bear fruit over the next two years and continue to look for
development opportunities to exploit our strong balance sheet.
Richard Jewson
Chairman
Interim Results
(Unaudited)
Six months Six months Year
to to to
31.10.00 31.10.99 30.04.00
£'000 £'000 £'000
-------------------------------------------------------------
Turnover
Group & share of joint 113,891 64,165 142,587
ventures
Less share of joint ventures (4,021) (29) (651)
________ _______ _______
Total Group turnover 109,870 64,136 141,936
-------------------------------------------------------------
Operating profit
Group - existing 8,322 8,531 18,792
operations
- acquisitions 83 (125) 76
Share of operating profit
of joint ventures 651 (19) 4
Share of operating profit 178 149 568
of associates
________ _______ _______
Total operating profit 9,234 8,536 19,440
Profit on disposal on 809 - 22
formation of joint venture
________ _______ _______
Profit on ordinary 10,043 8,536 19,462
activities before interest
Net interest
Group 495 217 709
Joint ventures 40 - 6
Associates 15 85 (1)
________ _______ _______
550 302 714
________ _______ _______
Profit on ordinary 10,593 8,838 20,176
activities before taxation
Taxation on profit on (3,483) (3,097) (6,166)
ordinary activities
________ _______ _______
Profit on ordinary 7,110 5,741 14,010
activities after taxation
Minority interests (446) (270) (344)
________ _______ _______
Profit for the financial 6,664 5,471 13,666
period
Dividends - (1,459) (4,008)
________ _______ _______
Profit for the period 6,664 4,012 9,658
transferred to reserves
-------------------------------------------------------------
Earnings per share before
amortisation of goodwill 13.3p 11.7p 28.9p
Basic earnings per share 11.8p 11.3p 27.8p
Diluted earnings per share 10.8p 10.3p 25.4p
Dividends per share - 3.0p 7.5p
-------------------------------------------------------------
SUMMARY GROUP BALANCE SHEET
at 31 October 2000
31.10.00 31.10.99 30.04.00
£'000 £'000 £'000
----------------------------------------------------------------
Intangible assets 33,401 8,480 33,202
Tangible assets 27,313 9,956 21,345
Investments
Investments in
joint ventures
Share of gross 4,078 - 2,420
assets
Share of gross (1,940) - (846)
liabilities
Investments in 3,534 148 1,529
associates
Other investments 6,297 4,042 4,021
______ _____ _____
72,683 22,626 61,671
Working capital 5,527 18,732 306
Cash 23,889 24,444 29,058
______ _____ _____
Net current assets 29,416 43,176 29,364
Long-term creditors & (24,491) (16,210) (20,996)
provisions
______ _____ _____
Net assets 77,608 49,592 70,039
______ _____ _____
Called up equity 3,128 2,693 3,127
share capital
Reserves
Share premium 40,855 25,104 40,845
Profit & loss 32,763 21,451 25,636
______ ______ ______
Shareholders' funds - 76,746 49,248 69,608
equity
Minority interests - 862 344 431
equity
______ _____ _____
77,608 49,592 70,039
______ ______ _____
CONSOLIDATED CASH FLOW STATEMENT
Six Six Year to
months to months to
31.10.00 31.10.99 30.04.00
£'000 £'000 £'000
Net cash inflow/(outflow)
from operating activities 2,815 (1,072) 20,167
Dividends received from 436 - 445
associates
Net cash inflow from
returns on investments & 275 424 806
servicing of finance
Tax paid (3,792) (518) (6,006)
Net cash outflow from
capital expenditure
& financial (12,051) (3,032) (10,878)
investment
Net cash inflow/(outflow)
from acquisitions 326 (4,017) (9,715)
& disposals
Equity dividends paid (2,944) (2,014) (3,401)
-------- ------- -------
Cash outflow before use of
liquid resources &
financing (14,935) (10,229) (8,582)
Management of liquid 1,747 1,619 216
resources
Financing 10,571 6,726 7,894
-------- ------- -------
Decrease in cash for the (2,617) (1,884) (472)
period
--------------------------- -------- ------- -------
STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES
Six Six Year to
months to months to
31.10.00 31.10.99 30.04.00
£'000 £'000 £'000
--------------------------- -------- ------- -------
Profit for the financial 6,664 5,471 13,666
period
Exchange movements on
foreign currency net 463 (43) 203
investments
-------- ------- -------
Total recognised gains &
losses relating to the 7,127 5,428 13,869
period
--------------------------- -------- ------- -------
NOTES
1. The interim accounts in respect of the six months ended 31
October 2000 and the comparative figures in respect of the six
months ended 31 October 1999 are unaudited. The comparative
figures for the financial year ended 30 April 2000 are not the
Company's statutory accounts for that financial year. Those
accounts have been reported on by the Company's auditors and
delivered to the Registrar of Companies. The report was
unqualified and did not contain a statement under Section
237(2) or (4) of the Companies Act 1985.
2.The tax charge has been calculated on the basis of the
underlying rate in each jurisdiction adjusted for any
disallowable charges.
3.The calculation of basic earnings per share is based on a
weighted average number of shares in issue of 56,429,000 (six
months to 31 October 1999 - 48,588,000 and year to
30 April 2000 - 49,139,000). The calculation of earnings per
share before amortisation of goodwill uses the same weighted
average shares as the basic earnings per share calculation,
and earnings are adjusted for goodwill of £868,000 (6 months
to 31 October 1999 - £225,000 and year to 30 April 2000 -
£540,000). The calculation of diluted earnings per share is
based on a weighted average number of shares of 61,747,000 (6
months to 31 October 1999 - 52,964,000 and year to 30 April
2000 - 53,731,000).
4.No interim dividend will be paid. The current number of shares
in issue is 62,560,460.
5. Segmental analysis
Financial Property Holding
6 months to Commercial Residential Services Companies Company Group
31.10.00 £'000 £'000 £'000 £'000 £'000 £'000
------------------------------------------------------------------------
Total Group 68,225 34,317 2,296 5,032 - 109,870
turnover
------------------------------------------------------------------------
Operating 7,195 3,238 (1,229) 673 (643) 9,234
profit/(loss)
Profit/(loss)
before interest 8,004 3,238 (1,229) 673 (643) 10,043
Profit/(loss)
before taxation 8,638 3,426 (1,286) 563 (748) 10,593
--------------------------------------------------------
6 months to
31.10.99
profit/(loss) 3,692 4,076 (22) 1,556 (464) 8,838
before taxation
------------------------------------------------------------------------
The Commercial column of the segmental analysis includes the
results for overseas operations.
6. Geographical analysis of turnover, profit before interest and tax
(PBIT)
Turnover PBIT Turnover PBIT
31.10.00 31.10.00 31.10.99 31.10.99
£'000 £'000 £'000 £'000
------------------------------------------------------------------------
United Kingdom 63,749 6,256 60,699 7,897
Europe 4,050 1,168 3,437 639
Asia 42,071 2,619 - -
------------------------------------------------------------------------
109,870 10,043 64,136 8,536
------------------------------------------------------------------------
Copies of this statement are being sent to shareholders and are available from:
Savills plc, 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ
Telephone: 020 7409 9920 Fax: 020 7491 0505 Contact: Lizzie Jackson
In addition, with prior notice, copies in alternative formats
i.e. large print, audio tape, braille are available if required from Lloyds TSB
Registrars, The Causeway, Worthing, West Sussex BN99 6DA.
This information is also available on the Company's website at:
www.fpdsavills.co.uk
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