Pre-Close Trading Update

RNS Number : 9475T

Savills PLC

12 January 2017

 

12 January 2017                                                                                     

SAVILLS PLC

("Savills" or the "Group")

Pre-Close Trading Update

Savills plc, the international real estate advisor, publishes the following Pre-Close trading update in respect of the year to 31 December 2016.

The Group experienced a strong finish to the year with the completion of significant volumes of commercial and residential transactions in a number of our businesses around the world and benefited from further sterling devaluation. Accordingly, the Group now anticipates that underlying results for the year to 31 December 2016 will be meaningfully ahead of our previous expectations.

Savills Investment Management completed a number of significant disposal transactions earlier than anticipated, as part of the wind down of the German mutual funds managed by the former SEB Investment Management business (acquired in September 2015). As this benefited Savills in 2016, it moderates our expectations for the transactional element of the Investment Management business in 2017.

In the UK, we saw increased market share in commercial investment transactions, primarily as a result of the post-referendum interest emanating from overseas. In addition, notwithstanding a slower December, our UK residential business performed rather better than anticipated, with the top end of the market showing similar currency-related drivers of investment activity from international buyers. These factors largely mitigated the anticipated reduction in transactional activity during the year.

Our Asia Pacific and Continental European transactional businesses have performed ahead of our expectations, offsetting a flat performance from the US business where, particularly in respect of major or complex occupier transactions, corporations have tended to defer significant decision making in advance of the change of US Administration.

Across the Group our less transactional businesses performed in line with our expectations and the devaluation of sterling against major currencies, which became increasingly beneficial in the final quarter, further boosted the Group's reported profits.

In the current year, against the backdrop of heightened uncertainty over global economic prospects, geopolitical risks and rising bond yields, we expect a tempering of the strong transaction volumes of recent times in many markets. Accordingly we retain our original expectations for 2017.

Savills will report 2016 full year results on 22nd March 2017.

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

Inside Information

This announcement is being disclosed in accordance with the Market Abuse Regulation (EU596/2014) and has been determined to contain inside information in line with the definition therein.

Forward looking statements

Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management.  They are subject to a number of risks, uncertainties and other factors which could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group's principal risks are described in the 2016 Savills plc Annual Report which can be viewed online at http://www.savills.com. Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made.  No obligation is accepted to publicly revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required. Nothing in this Statement should be construed as a profit forecast. 

 

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