Savills PLC
03 July 2006
For immediate release 3 July 2006
SAVILLS PLC
('Savills' or 'the Company')
Trading Update
Savills, the international property services company, provides the following
trading update for the half-year, prior to the interim results for the first
half of 2006, which are scheduled for release on 5 September 2006.
Overview
At the time of our Annual General Meeting the Chairman reported that the Group
had, overall, performed in line with our expectations and ahead of the
corresponding period last year.
The current position is set out below:
Main Business Streams:
Transactional
The commercial property investment market throughout the UK remains strong and
the first half has seen a continuing high level of transaction volumes. There
is continued high demand for property from private and institutional buyers both
in the UK and overseas. Tenant demand in both London and the regional
commercial markets is improving.
Residential markets have been particularly buoyant in London and had a much
stronger first half than was the case in 2005, although we do not expect this
trend to continue into the second half.
In Asia, the commercial investment markets have showed signs of slowing, due to
rising interest rates. In key European markets our investment teams are
performing well.
Consultancy
Our Consultancy business has performed well. The demand for property services
remains high and we have continued to expand and develop our professional teams,
particularly in the areas of valuation and planning.
Property Management
The UK and European commercial property management business has benefited from
organic growth, acquisition and key recruitment. In Hong Kong and China we have
also increased the size and scope of our property and facility management
business.
Financial Services
Our private client financial services business continues to perform well.
Fund Management
Having built on its existing infrastructure, Cordea Savills' funds under
management continue to grow steadily.
Outlook
The first half has seen strong investment markets especially in the UK and in
key European markets and this should ensure that commercial activity levels
remain high in 2006. Residential markets have been buoyant in the first half of
2006. While our order book remains stronger than last year, we have some
caution that the residential markets may not be as buoyant in the second half.
The Board is, therefore, currently of the view that the Group is well placed to
deliver full year results in line with our existing expectations.
ENDS
For further information, please contact:
Savills
Aubrey Adams 020 7409 9923
Citigate Dewe Rogerson
Simon Rigby/Sarah Gestetner 020 7638 9571
This information is provided by RNS
The company news service from the London Stock Exchange
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