Interim Results - Pre-tax Profit Up 69%

Savills PLC 11 January 2000 SAVILLS PLC INTERIM PROFITS INCREASE BY 69% for the six months ended 31 October 1999 * Group pre-tax profit was up 69% at £8.8m (1998 - £5.2m). * Group turnover for the six months was up 72% at £64.1m (1998 - £37.2m). * Interim dividend increased to 3.0p (net) per share (1998 - 1.75p). Richard Jewson, Chairman of Savills plc, comments: 'This half year shows record results for the Group with strong performance across the divisions. We have taken full advantage of very firm residential and commercial markets, and have made progress throughout our offices in the UK and on mainland Europe. 'We expect demand for our services to remain strong although it will be difficult to maintain the rate of growth achieved recently. We have excellent teams of professionals who remain highly motivated. We will continue to strengthen our business in areas where we can create value, and we are actively developing and investing in our international network.' *** Chairman's Statement and Interim Results follow *** Savills plc. Registered in England No. 2122174. Registered Office 20 Grosvenor Hill, Berkeley Square, London W1X 0HQ For further information, contact: Richard Jewson/Aubrey Adams (Savills) 0171 466 5000 until 1pm today, thereafter on 0171 409 9923 Mark Edwards/Kirsty Robeson (Buchanan Communications) 0171 466 5000 CHAIRMAN'S STATEMENT RESULTS AND DIVIDEND I am delighted to announce that profit before tax for the six months ended 31 October 1999 was up 69% at £8.8m (1998 - £5.2m). Earnings per share were 11.3p (1998 - 6.7p). Turnover was up 72% at £64.1m (1998 - £37.2m). The balance sheet shows cash of £24.4m. The Directors have declared an interim dividend of 3.0p (1998 - 1.75p). This 71% increase continues our progressive dividend policy and is also intended to provide a better balance between interim and final payments. TRADING REVIEW This half year shows record results for the Group with strong performance across the divisions. We have taken full advantage of very firm residential and commercial markets, and have made progress throughout our offices in the UK and on mainland Europe. The Grosvenor Hill Ventures group started the year strongly with a profit of £1.5m, following sales of properties in Edinburgh and Liverpool. In pursuit of our strategy to build our position in the management of residential property, we have acquired the residential corporate lettings and management business of Bradford & Bingley Estate Agencies Limited. We have also acquired the 50% shareholding in Trigon Limited, our facilities management company, previously owned by Castle View. PROPERTY SERVICES Agency Outstanding results have been driven by high volume and high value transactions both in the London and regional offices of our Commercial practice, where we have gained market share, and in the residential market with record results across all our regions. We are expanding our new homes division into Birmingham and other major centres. The investment market has been buoyant and we have carried out some notable instructions during the period. We have added to our teams in London and in the regions. Professional All professional departments are busy with profitable work. Valuation has performed particularly well. Our planning capability has increased with the successful integration of Shaw Cramond, which we acquired last year. International The alliance with First Pacific Davies is proving successful and the re branding exercise in Australia has been completed. There are now 86 offices in 21 countries in the grouping. Our offices in Germany, France and Spain have produced a very satisfactory return while growing their client base. FINANCIAL SERVICES Grosvenor Hill Ventures, as well as completing the sales noted above, has acquired an village in West Yorkshire to be known as Bailey Mills Shopping Village. Savills Private Finance has performed in line with expectations while expanding its team of consultants. Savills Finance continues to work on Residential Property Unit Trust in its role as Fund Operations Adviser. OUTLOOK We expect demand for our services to remain strong although it will be difficult to maintain the rate of growth achieved recently. We have excellent teams of professionals who remain highly motivated. We will continue to strengthen our business in areas where we can create value, and we are actively developing and investing in our international network. Richard Jewson, Chairman 11 January 2000 Interim Results (Unaudited) Six months Six months Year to to 31.10.99 to 31.10.98 30.04.99 £'000 £'000 £'000 Turnover Group and share of joint 64,165 37,423 102,947 ventures Less share of joint ventures (29) (228) (587) Total group turnover 64,136 37,195 102,360 Operating profit Group - continuing 8,531 3,871 13,840 operations - acquisitions (125) - 154 Share of joint ventures (33) 38 (19) Share of associates 149 223 170 Loss on disposal of property - - (59) Profit on disposal of - 878 908 investment Profit before interest and 8,536 4,939 15,051 taxation Net interest Group 217 385 417 Joint ventures - - 1 Associates 85 (101) (52) Profit on ordinary 8,838 5,223 15,417 activities before taxation Taxation on profit on (3,097) (1,758) (5,494) ordinary activities Profit on ordinary 5,741 3,465 9,923 activities after taxation Minority interests (270) (200) (155) Profit for the financial 5,471 3,265 9,768 period Dividends (1,459) (939) (2,770) Profit for the period 4,012 2,326 6,998 transferred to reserves Earnings per share 11.3p 6.7p 20.1p Fully diluted earnings per 10.3p 6.3p 18.9p share Dividends per share 3.0p 1.75p 5.75p SUMMARY GROUP BALANCE SHEET at 31 October 1999 Restated 31.10.99 31.10.98 30.4.99 £'000 £'000 £'000 Tangible assets 9,956 8,029 8,881 Intangible assets 8,480 5,637 5,987 Investments Investments in joint ventures Share of gross assets - 835 1,022 Share of gross liabilities - (788) (903) Investments in associates 148 153 44 Other investments 4,042 3,386 3,855 22,626 17,252 18,886 Working capital 18,732 14,548 3,308 Cash 24,444 13,751 26,515 Net current assets 43,176 28,299 29,823 Long-term creditors & provisions (16,210) (4,636) (3,385) Net assets 49,592 40,915 45,324 Called up equity 2,693 2,684 2,689 share capital Reserves Share premium 25,104 25,002 25,060 Profit & loss 21,451 12,936 17,501 Shareholders funds - equity 49,248 40,622 45,250 Minority interests - equity 344 293 74 49,592 40,915 45,324 CONSOLIDATED CASH FLOW STATEMENT Six months Six months Year to to 31.10.99 to 31.10.98 30.04.99 £'000 £'000 £'000 Net cash (outflow)/inflow from operating activities (1,072) (4,843) 14,771 Dividends received from associates - 150 310 Net cash inflow from returns on investments & servicing of finance 424 284 205 Tax paid (518) (30) (3,516) Net cash outflow from capital expenditure & financial investment (3,032) (3,097) (6,296) Net cash outflow from acquisitions & disposals (4,017) (2,562) (1,716) Equity dividends paid (2,014) (1,717) (2,546) Cash (outflow)/in flow before use of liquid resources & financing (10,229) (11,815) 1,212 Management of liquid resources 1,619 9,211 (4,399) Financing 6,726 (636) (1,850) Decrease in cash for the period (1,884) (3,240) (5,037) STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES Six months Six months Year to to 31.10.99 to 31.10.98 30.04.99 £'000 £'000 £'000 Profit for the financial period 5,471 3,265 9,768 Exchange movements on foreign currency net investments (43) - (38) Total recognised gains & losses relating to the period 5,428 3,265 9,730 NOTES 1. The interim accounts in respect of the six months ended 31 October 1999 and the comparative figures in respect of the six months ended 31 October 1998 are unaudited. The comparative figures for the financial year ended 30 April 1999 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 of 30% adjusted for any disallowable charges. 3. The calculation of earnings per share is based on a weighted average number of shares in issue of 48,588,000 (six months to 31 October 1998 - 48,709,000 and year to 30 April 1999 - 48,580,000). The calculation of fully diluted earnings per share is based on a weighted average number of shares of 52,964,000 (6 months to 31 October 1998 - 51,608,000 and year to 30 April 1999 - 51,777,000). 4. An interim dividend of 3.0p (net) per share will be paid on 18 February 2000 to shareholders on the register as at 28 January 2000. The current number of shares in issue is 53,850,628. 5. Segmental Analysis 6 months to 31.10.99 Financial Property Holding Commercial Services Companies Company Group £'000 £'000 £'000 £'000 £'000 £'000 Turnover (group & joint 20,410 32,522 1,548 9,669 16 64,165 ventures) (29) - - - - (29) Less share of joint ventures Total Group turnover 20,381 32,522 1,548 9,669 16 64,136 Operating profit/ (loss) 3,536 3,974 (179) 1,924 (849) 8,406 Share of joint ventures (19) - - - - (19) Share of associates - - 149 - - 149 Profit/(loss) before interest 3,517 3,974 (30) 1,924 (849) 8,536 Net interest Group 175 102 (77) (368) 385 217 Associates - - 85 - - 85 Profit before taxation 3,692 4,076 (22) 1,556 (464) 8,838 6 months to 31.10.98 Profit before taxation (restated) 2,280 1,876 789 (248) 526 5,223 Copies of this statement are being sent to shareholders and are available from: Savills plc, 20 Grosvenor Hill, Berkeley Square, London W1X 0HQ Telephone: 0171 409 9920 Fax: 0171 409 1800 Contact: Lizzie Jackson In addition, 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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