Interim Results
Savills PLC
01 September 2004
FOR IMMEDIATE RELEASE WEDNESDAY 1 SEPTEMBER 2004
Excellent performance in the first half
Savills plc, the international property consultants, today announces interim
results for the six months ended 30 June 2004.
• Group profit before tax was up 54% to £15.1m (2003 - £9.8m).
• Group turnover for the six months was up 22% at £140.3m (2003 - £114.6m).
• Basic earnings per share increased by 55% to 17.7p (2003 - 11.4p).
• Adjusted basic earnings per share excluding sale of trading properties,
impairments and amortisation of goodwill 20.1p (2003 - 13.4p).
• Interim dividend increased 67% to 6.0p (2003 - 3.6p).
Richard Jewson, Chairman of Savills plc, comments: 'I am delighted to report a
particularly strong set of half year results with good all round performance in
the commercial and residential markets both in the UK and overseas. Recent
increases in short-term interest rates were anticipated and we believe will have
little direct impact on the property sectors in which we operate. Continued
underlying confidence in property as an asset class is expected to underpin the
market and mean that we are well placed to achieve a good result for the full
year.'
*** 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
Marc Popiolek
Samantha Robbins
CHAIRMAN'S STATEMENT
RESULTS AND DIVIDEND
We reported in our Trading Update, released on 1 July 2004, that while interest
rate increases will ultimately have an impact on the UK property market as a
whole, commercial activity levels remain high in 2004 and although residential
market volumes may reduce this will not materially affect profitability.
I am accordingly pleased to announce that profit before tax increased 54% to
£15.1m (2003 - £9.8m) on turnover which increased 22% to £140.3m (2003 -
£114.6m). Basic earnings per share for the six months to 30 June 2004 increased
by 55% to 17.7p per share (2003 - 11.4p), this increase was due to improved
profits during the period. The balance sheet remains strong with a cash balance
of £51.8m. There was a small decrease in the effective tax charge for the period
to 32.9% (2003 - 33.1%). The Directors have decided to increase the interim
dividend by 67% to 6.0p (2003 - 3.6p) to be paid on
22 October 2004; this increase reflects our confidence in the business and an
element of re-balancing of the interim with the final dividend.
TRADING REVIEW
Transactional Advice
During the half year, turnover for the Transactional business was £65.9m (2003 -
£44.6m) and operating profit was £9.8m (2003 - £3.1m).
Leasing markets in London and the South East have started to pick up with demand
increasing as a result of a more optimistic outlook from corporate tenants.
Regional markets remain resilient and there has been increasing demand for
accommodation outside of London, particularly in the Thames Valley. Retail
generally shows good demand for well located out of town sites.
The investment market remains strong with continuing interest from institutional
investors as well as overseas buyers. The retail warehouse investment market,
where Savills is a market leader, remains buoyant with investors particularly
attracted by quality of income and growth prospects. The European investment
market is active and our European Investment teams are having a very successful
year, with several major transactions completing in the second half.
The Hong Kong market for commercial and residential property sales has performed
exceptionally well in the first half, contrasting the poor performance of last
year when the business was badly affected by SARS.
Prime residential markets, despite publicised concerns, have remained strong
with turnover considerably higher than the same period last year. In London
there was an accelerated market at the start of the year and although this
quietened after Easter, transaction levels have remained strong. In the country
the market has remained buoyant with some premium prices achieved for quality
stock at the exclusive end of the market.
Sales of new homes are no longer dominated by buy to let investors, who are
taking a more cautious view as interest rates have moved up, but sales on good
sites remain strong in what remains a reasonable market.
Consultancy
During the first half of the year turnover for the Consultancy businesses was
£24.7m (2003 - £20.3m) and operating profit was £3.3m (2003 - £2.5m).
Our professional businesses have been extremely busy with our expertise in
valuations, affordable housing and social housing increasingly in demand
especially on larger scale projects. Our planning and building/housing
consultancy divisions have been strengthened and we are now able to provide a
strong presence and service both in London and the regions.
We continue to develop our Fund Management business with significant high level
recruitment.
Property Management
During the half year, turnover for the Property Management businesses was £27.1m
(2003 - £27.0m) and operating profit was down at £0.8m (2003 - £1.8m).
In the UK, residential and rural property management income was slightly behind
the same period in 2003. We continue, however, to expand this business and while
additional staff costs in the first half reduced overall profits, income from
the expanded team will be realised in the second half. We also continue to
expand our commercial Property Management capabilities throughout the rest of
Europe.
In Madrid we have recently recruited a large property management team, which has
secured a significant number of major new instructions.
In Asia we are successfully building on our market share, with our expansion
into China progressing on the back of our existing client base. We are
considering new prospects in the Asian market.
Facilities Management
During the half year, turnover for the Facilities Management business, Guardian,
was £12.9m (2003 - £14.7m) and operating profit was £0.8m (2003 - £1.0m).
This business is based in Hong Kong and China and has remained competitive
within a tight market with increasing pressure on margins. We actively continue
to pursue and secure new contracts in this area.
Property Trading and Investment
During the half year, turnover for the Property Trading businesses was £1.2m
(2003 - £1.9m) and operating profit was £1.1m (2003 - £0.9m).
Further to our announcement of 10 August 2004, we have successfully completed
the sale of Talbot Green Retail Park, Llantrisant for a cash consideration of
£18.1m. This property was originally acquired as an investment, however
following a particularly successful letting of one of the units it was
considered more appropriate to realise the resulting uplift in value now. The
disposal will result in an additional £7m of profit in the second half of 2004;
however there will be minimal impact on 'normalised profits', i.e. before
property sales and goodwill amortisation.
Financial Services
During the half year, turnover for the Financial Services businesses was £8.5m
(2003 - £6.1m) and operating profit was £1.5m (2003 - £1.1m).
Savills Private Finance, the principal subsidiary of the financial services
division, traded exceptionally well and continues to be a leader in the high net
worth mortgage broking market. New offices have been opened in Cambridge, the
West End and Birmingham. Commercial Debt Broking and Financial Planning have
also made significant contributions to the business during the period.
BOARD
As announced on 25 May 2004, Peter Smith was appointed to the Board of Savills
plc as a Non-Executive Director and Chairman Designate. This is my last
statement as Chairman and I would like to take this opportunity to thank the
Board of Savills who, along with our very dedicated and talented staff, work so
hard to make Savills the success that it is. I am delighted that Peter will
succeed me as Chairman when I retire from the Board on 31 October 2004 and wish
him and all at Savills further success in the future.
SHARE RE-PURCHASE PROGRAMME
As announced on 1 July 2004, the Company undertook an irrevocable,
non-discretionary programme to re-purchase its own shares during the close
period. During this period 170,000 shares were purchased for cancellation. This
brings the total of shares re-purchased since 1 January 2004 to 270,000.
OUTLOOK
Recent increases in short-term interest rates were anticipated and we believe
will have little direct impact on the property sectors in which we operate.
Continued underlying confidence in property as an asset class is expected to
underpin the market and mean that we are well placed to achieve a good result
for the full year.
INDEPENDENT REVIEW REPORT TO SAVILLS PLC
Introduction
We have been instructed by Savills plc ('the Group') to review the financial
information which comprises the profit and loss account, balance sheet, cash
flow statement, statement of total recognised gains and losses, reconciliation
of movements in shareholders' funds and associated notes. We have read the other
information contained in the interim report and considered whether it contains
any apparent misstatements or material inconsistencies with the financial
information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the Directors. The Directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information. This report has been prepared for
and only for the Group for the purpose of the Listing 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.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2004.
PricewaterhouseCoopers LLP
Chartered Accountants
1 Embankment Place
London
WC2N 6RH
1 September 2004
SAVILLS plc
CONSOLIDATED PROFIT & LOSS ACCOUNT (unaudited)
six months ended 30 June 2004
Six Six Restated
months months Year
to to to
30.06.04 30.06.03 31.12.03
Notes £'000 £'000 £'000
----------------------------------------------------------------------------
Turnover - Group & share of joint
ventures
Other continuing operations 141,247 114,811 274,015
Sale of trading properties - - 28,987
Acquisitions 465 - -
Less: Share of turnover of
joint ventures (1,364) (236) (1,310)
--------------------------------
Total Group turnover 3&4 140,348 114,575 301,692
----------------------------------------------------------------------------
Operating Profit
Other continuing operations 14,208 9,481 30,568
Sale of trading properties - - 4,714
Acquisitions 170 - -
--------------------------------
Group operating profit 3&4 14,378 9,481 35,282
Share of operating
(loss)/profit of joint
ventures (13) 68 30
Share of operating
profit/(loss) of associated
undertakings 5 97 (80) (1,559)
--------------------------------
Operating profit including share of
joint ventures &
associated undertakings 14,462 9,469 33,753
Profit on disposal of interest
in associated undertakings 155 - -
Profit on disposal of
investments - 534 521
--------------------------------
Profit on ordinary activities
before interest 3&4 14,617 10,003 34,274
Net interest
Group 487 (247) (208)
Joint ventures - (4) (2)
Associated undertakings - 1 (7)
--------------------------------
Total net interest 487 (250) (217)
--------------------------------
Profit on ordinary activities
before taxation 3&4 15,104 9,753 34,057
Taxation on profit on ordinary
activities 6 (4,967) (3,228) (12,409)
--------------------------------
Profit on ordinary activities
after taxation 10,137 6,525 21,648
Equity minority interests (176) (86) (838)
--------------------------------
Profit for the financial year 9,961 6,439 20,810
Dividends paid & proposed 7 (3,394) (1,975) (7,584)
--------------------------------
Profit for the year
transferred to reserves 6,567 4,464 13,226
--------------------------------
Basic earnings per share 8(a) 17.7p 11.4p 37.0p
Adjusted basic earnings per share
excluding sale of
trading properties, impairments and
amortisation
of goodwill 8(b) 20.1p 13.4p 37.7p
Diluted earnings per share 8(a) 16.2p 10.6p 34.1p
Dividend per share 7 6.0p 3.6p 13.6p
--------------------------------
SAVILLS plc
CONSOLIDATED GROUP BALANCE SHEET (unaudited)
at 30 June 2004
Restated Restated
30.06.04 30.06.03 31.12.03
Notes £'000 £'000 £'000
-----------------------------------------------------------------------------------
Fixed assets
Intangible assets 37,850 30,930 36,021
Tangible assets 26,931 10,943 26,762
Investments
Investments in
joint ventures
Share of gross 1,685 860 901
assets
Share of gross (1,135) (310) (361)
liabilities ------ ------ ------
550 550 540
Investment in
associated
undertakings 26 3,827 280
Other investments 1,427 1,776 1,427
------ ------ ------
Total investments 2,003 6,153 2,247
------- ------- -------
Total fixed 66,784 48,026 65,030
assets ------- ------- -------
Current assets
Property held for 8,604 30,293 8,081
sale
Work in progress 3,191 3,549 2,801
Debtors 77,236 61,416 82,074
Cash at bank &
short-term
deposits 51,836 38,032 71,871
------ ------ ------
140,867 133,290 164,827
Creditors -
amounts falling
due
within one year (74,574) (57,666) (103,753)
------- ------- -------
Net current assets 66,293 75,624 61,074
------- ------- -------
Total assets less
current liabilities 133,077 123,650 126,104
------- ------- -------
Creditors -
amounts falling
due after more than
one year (20,897) (27,160) (19,521)
Provisions for
liabilities &
charges (10,852) (5,734) (10,306)
------- ------- -------
Net assets 101,328 90,756 96,277
======= ======= =======
Capital &
Reserves
Called up equity
share capital 3,072 3,110 3,070
Share premium
account 42,569 41,528 42,237
Profit & loss
account 2 55,075 45,759 50,301
Capital
redemption
reserve 111 50 107
Equity shareholders' ------- ------- -------
funds 100,827 90,447 95,715
Equity minority
interests 501 309 562
------- ------- -------
101,328 90,756 96,277
------------------------------------=======-------------=======-------------=======
SAVILLS plc
CONSOLIDATED CASH FLOW STATEMENT (unaudited)
six months ended 30 June 2004
Six Six Restated
months months Year
to to to
30.06.04 30.06.03 31.12.03
Notes £'000 £'000 £'000
-----------------------------------------------------------------------------
Net cash inflow/(outflow) from
operating activities 9(a) 1,427 (14,019) 60,563
Dividends from joint ventures
& associated undertakings 72 124 349
Net cash inflow/(outflow) from
returns on investments &
servicing of finance 353 (1,396) (1,466)
Tax paid (7,247) (5,997) (11,086)
Net cash (outflow)/inflow for capital
expenditure &
financial investment (2,372) 8,023 (9,886)
Net cash outflow from
acquisitions & disposals (3,549) (2,139) (7,604)
Equity dividends paid (5,633) (3,817) (5,840)
-------- -------- --------
Cash (outflow)/inflow before use of
liquid resources &
financing (16,949) (19,221) 25,030
Net cash inflow/(outflow) from
management of liquid
resources 16,352 8,267 (9,425)
Net cash (outflow)/inflow from
financing (2,361) 4,037 (5,157)
-------- -------- --------
Increase in cash 9(b) (2,958) (6,917) 10,448
======== ======== ========
SAVILLS plc
STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES (unaudited)
six months ended 30 June 2004
Six Six
months months Year
to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
------------------------------------------------------------------------------
Profit for the financial year
Group 9,912 6,505 22,531
Joint ventures (30) 49 6
Associated undertakings 79 (115) (1,727)
-------- -------- --------
9,961 6,439 20,810
Currency translation differences on foreign
currency net investments (283) (687) (2,304)
-------- -------- --------
Total recognised gains & losses
for the year 9,678 5,752 18,506
Prior year adjustment - UITF 38
'Accounting for ESOP trusts' (1,207) - -
Total recognised gains & losses
since last Annual Report 8,471 5,752 18,506
------------------------------------------------------------------------------
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS (unaudited)
six months ended 30 June 2004
Restated
Six Six Restated
months months Year
to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
-----------------------------------------------------------------------------
Profit for the financial year 9,961 6,439 20,810
Dividends (3,394) (1,975) (7,584)
-------- -------- --------
Retained profit for the year 6,567 4,464 13,226
Issue of share capital 339 17 743
Purchase of own shares (327) (1,357) (4,256)
Purchase own shares for ESOP (2,128) - (831)
ESOP credit 944 1,031 2,158
Currency translation differences (283) (687) (2,304)
-------- -------- --------
Net increase in shareholders'
funds 5,112 3,468 8,736
Shareholders' funds at beginning of year
(December 2003
originally £97,121,000 before deducting prior
year
adjustment of £1,406,000 - see
note 2) 95,715 86,979 86,979
-------- -------- --------
Shareholders' funds at end of
year 100,827 90,447 95,715
----------------------------------------------========---========----========
NOTES
1. Basis of preparation
The unaudited accounts for the six months ended 30 June 2004 have been prepared under the
historical cost convention, modified to include the revaluation of investment properties and in
accordance with applicable United Kingdom accounting standards on a consistent basis with
prior years, except as modified in order to comply with UITF 38 'Accounting for ESOP
trusts' (note 2).
The financial information in this statement does not constitute statutory accounts within the
meaning of s240 of the Companies Act 1985. The statutory accounts for the year ended
31 December 2003, on which the auditors have given an unqualified audit report, have been filed
with the Registrar of Companies.
2. Prior year adjustment
In accordance with UITF 38 'Accounting for ESOP trusts', investment in the Group's own shares,
which are held to provide shares to certain employees under a long term incentive plan through
its Employee Share Ownership Plan Trust (ESOP) are shown as a deduction from shareholders'
funds. Total Shareholders' funds as at 30 June 2004 have been reduced by £1,383,000
(31 December 2003 - £199,000 and 30 June 2003 - £495,000). This change of accounting policy
has been reflected as a prior year adjustment and the corresponding amounts have been restated.
The restatement of the prior year figures had no impact on the profit and loss account for the six
months to 30 June 2003 and reduced profit on ordinary activities after taxation by £1,207,000 for
the year ended 31 December 2003, reflecting an ESOP charge based on the market value of
shares at award date rather than cost as required by UITF 17 as revised by UITF 38.
The cash flow statement has also been restated to show the relevant cash flows in financing
rather than capital expenditure and financial investment.
3. Segmental Analysis
Six Property
months to Trans- Property Facilities Trading &
30 June actional Consult- Manage- Manage- Invest- Financial Holding
2004 Advice ancy ment ment ment Services Company Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
-----------------------------------------------------------------------------------------------------
Total
Group
turnover 65,925 24,686 27,124 12,909 1,226 8,478 - 140,348
-------- ======= ======= ======= ======= ======= ======= ======= =======
Group
operating
profit/
(loss) 9,768 3,321 825 822 1,083 1,535 (2,976) 14,378
Profit/
(loss)
before
interest &
taxation 9,768 3,230 1,118 859 1,083 1,535 (2,976) 14,617
Net 487
interest -------
Profit on
ordinary
activities
before
taxation 15,104
-----------------=======----=======----=======-----=======----=======-----=======---=======--=======
Six Property
months to Trans- Property Facilities Trading &
30 June actional Consult- Manage- Manage- Invest- Financial Holding
2003 Advice ancy ment ment ment Services Company Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------------------------------
Total
Group
turnover 44,610 20,287 26,983 14,676 1,919 6,100 - 114,575
-------- ====== ======= ======= ======= ======= ======== ======== ========
Group
operating
profit/
(loss) 3,132 2,461 1,769 1,015 899 1,064 (859) 9,481
Profit/
(loss)
before
interest &
taxation 3,088 2,461 1,999 857 899 1,558 (859) 10,003
Net
interest (250)
Profit on --------
ordinary
activities
before
taxation 9,753
------------------======----=======---=======------=======----=======----========----========----========
4. Geographical analysis of turnover, Group operating profit & profit before interest
& tax (PBIT)
Total Group Total Group
Group operating Group operating
Six months turnover profit PBIT turnover profit PBIT
to
30 June 2004 2004 2004 2003 2003 2003
£'000 £'000 £'000 £'000 £'000 £'000
--------------------------------------------------------------------------------------------------------
United
Kingdom 94,365 10,950 10,896 71,225 8,764 9,142
Rest of
Europe 5,862 879 879 3,636 (363) (448)
Asia
Pacific 40,121 2,549 2,842 39,714 1,080 1,309
------- ------- ------- -------- -------- --------
140,348 14,378 14,617 114,575 9,481 10,003
-------------------------------------=======------=======----=======----========----========---========
Profit before interest and tax for the six months ended 30 June 2004 for Asia Pacific is shown after
charging goodwill amortisation of £769,000 (2003 - £756,000). The profit before interest and
tax for the six months ended 30 June 2004 for Europe is shown after charging goodwill amortisation
of £260,000 (2003 - £103,000). The profit before interest and tax for the six months ended 30 June
2004 for the UK is shown after charging goodwill amortisation of £329,000 (2003 - £250,000).
5. Share of operating profit/(loss) of associated undertakings
Six Six
months months Year
to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
--------------------------------------------------------------------------------------------------------
Share of operating profit/(loss) from interest in associated
undertakings 97 (29) (193)
Goodwill amortisation on investment in associated
undertakings - (51) (180)
Impairment of
goodwill in Trammell Crow Savills Limited - - (1,186)
-------- -------- --------
97 (80) (1,559)
-------------------------------------------------------------------------========----========---========
6. Taxation
The taxation charge has been calculated on the basis of the underlying rate in each
jurisdiction adjusted for any disallowable charges.
Six Six
months months Year
to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
-----------------------------------------------------------------------------------
United Kingdom
corporation tax (3,773) (2,875) (11,007)
Foreign
taxation (1,267) (376) (2,431)
Deferred Tax 73 23 1,029
-------- -------- --------
(4,967) (3,228) (12,409)
------------------------------------------------------========---========---========
7. Dividends Six Six
months months Year
to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
-----------------------------------------------------------------------------------
Ordinary interim
dividend of 6.0p per
share (2003 - 3.6p) 3,364 2,021 2,021
Ordinary proposed final
dividend of 10p per
share - - 5,563
Under/(over) provision
on prior year dividends 30 (46) -
-------- -------- --------
3,394 1,975 7,584
------------------------------------------------------========---========---========
The Directors have recommended a final dividend for the six months ended 30 June
2004 of 6.0 pence per ordinary share. The interim dividend will be paid on 22 October
2004 to shareholders on the register as at 24 September 2004.
8. Earnings per share
(a) Basic & diluted earnings per share
Six months to Earnings Shares EPS Earnings Shares EPS
30 June 2004 2004 2004 2003 2003 2003
£'000 '000 Pence £'000 '000 Pence
-------------------------------------------------------------------------------
Basic earnings per 9,961 56,189 17.7 6,439 56,316 11.4
share
Effect of additional
shares
issuable under option - 5,328 - - 4,378 -
------- ------- -------- --------
Diluted earnings per
share 9,961 61,517 16.2 6,439 60,694 10.6
---------------------------=======--=======-----------========---========-------
Restated Restated
Year Earnings Shares EPS
to 31 December 2003 2003 2003
£'000 '000 Pence
--------------------------------------------------------------------------------
Basic earnings per 20,810 56,207 37.0
share
Effect of additional
shares issuable under
option - 4,900 -
-------- --------
Diluted earnings per
share 20,810 61,107 34.1
------------------------------------------------------========---========-------
(b) Adjusted basic earnings per share excluding sale of trading
properties, impairments and amortisation of goodwill
Six months Earnings Shares EPS Earnings Shares EPS
to 30 June 2004 2004 2004 2003 2003 2003
£'000 '000 Pence £'000 '000 Pence
--------------------------------------------------------------------------------
Basic earnings per
share as
in part (a) above 9,961 56,189 17.7 6,439 56,316 11.4
Amortisation of
goodwill 1,358 - 2.4 1,109 - 2.0
------------------------------------------------------
Adjusted basic
earnings per
share excluding sale
of trading
properties,
impairments
and amortisation of
goodwill 11,319 56,189 20.1 7,548 56,316 13.4
=======--=======---=====---========---========-----====
Restated Restated
Year to Earnings Shares EPS
31 December 2003 2003 2003
£'000 '000 Pence
--------------------------------------------------------------------------------
Basic earnings per
share as in part (a)
above 20,810 56,207 37.0
Add back impairment
of goodwill in
Trammell Crow
Savills Ltd 1,186 - 2.1
Amortisation of
goodwill 2,483 - 4.4
Less sale of trading
properties after tax (3,300) - (5.8)
-------- -------- -----
Adjusted basic earnings per share excluding sale
of trading
properties,
impairments and
amortisation of
goodwill 21,179 56,207 37.7
----------------------------------------------------========---========----=====
9. Notes to consolidated cash flow statement
(a) Reconciliation of operating profit to Six Six Restated
net cash inflow months months Year
from operating activities to to to
30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
--------------------------------------------------------------------------------
Operating
profit 14,378 9,481 35,282
Depreciation
charges 2,292 2,423 4,923
Amortisation of
goodwill 1,358 1,058 2,303
Loss on the sale of
fixed assets 41 58 121
(Increase)/decrease
in property held for
sale (523) (5,637) 16,575
Increase in work in
progress (393) (818) (82)
Decrease/(increase)
in debtors 4,155 11,966 (8,180)
(Decrease)/increase
in creditors 21,571) (33,368) 2,726
Increase/(decrease)
in provisions 737 (223) 4,269
Increase in
provision for share
options granted 944 1,031 2,158
Provision against
fixed asset
investments 9 10 468
-------- -------- ------
Net cash inflow from
operating activities 1,427 (14,019) 60,563
----------------------------------------------------========--========---=======
Six Six
months months Year
(b) Reconciliation of net cash flows to to to to
net funds 30.06.04 30.06.03 31.12.03
£'000 £'000 £'000
----------------------------------------------------------------------------------
(Decrease)/increase in cash (2,958) (6,917) 10,448
Cash outflow/(inflow) from
decrease/(increase) in debt 244 (5,397) 787
Capital element of
finance leases repaid 2 17 26
New finance
lease (24) - -
(Decrease)/increase in
liquid resources (16,353) (8,267) 9,425
Exchange
movements (276) (556) (2,205)
-------- -------- --------
(19,365) (21,120) 18,481
Net funds at
beginning of
year 48,979 30,498 30,498
-------- -------- --------
Net funds at
end of year 29,614 9,378 48,979
------------------------------------------------------========---========---========
(c) Analysis
of changes in At Cash Other Exchange At
net funds 01.01.04 flows non-cash movement 30.06.04
£'000 £'000 £'000 £'000 £'000
-----------------------------------------------------------------------------------
Cash at bank 41,773 (3,212) - (322) 38,239
Overdrafts (508) 254 - 23 (231)
-------
(2,958)
Liquid funds
on one month
deposit 8,808 (7,129) - - 1,679
Liquid funds -
short-term
deposit 21,290 (9,224) - (148) 11,918
------- ------- -------- -------- --------
71,363 (19,311) - (447) 51,605
Debt - due within
one year (2,961) 1,572 - 43 (1,346)
- due after one
year (19,374) (1,328) - 127 (20,575)
Finance leases (49) 2 (24) 1 (70)
------- ------- -------- -------- --------
48,979 (19,065) (24) (276) 29,614
----------------------------------=======---=======---========---========---========
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 9928 Fax: 020 7491 0505 Email: vgrady@fpdsavills.co.uk
Contact: Victoria Grady
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.com
End
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