Stellar year for Savills

Real estate adviser Savills reported a strong set of full year results, boosted by improving markets and strategic acquisitions.

The FTSE 250 firm said pre-tax profit jumped 36% to £54.2m for the year ended December 31st while underlying pre-tax profit rose 21% to £60.8m. Revenue for the year gained 12% to £806.4m.

Commenting on the results, Chief Executive Jeremy Helsby said: "Our positions in both prime commercial and residential markets have enabled us to benefit from improving transaction volumes through 2012, particularly in the final quarter in Asia and the UK."

"We have reduced the losses in Continental Europe and our Investment Management business grew assets under management substantially. The changes we have made to our business over the last few years, including acquisitions, recruitment and restructuring, have improved the group's underlying profit margin."

Savills said it has made a strong start to 2013, particularly in the UK and Asia, and expects to make further progress across the group in the year ahead.

Underlying basic EPS surged 22% to 35.3p and the total dividend for the year has been increased 19%.

Helsby added: "We anticipate delivering continued improvements in our businesses in Continental Europe and the US although we are mindful of the risk of further weakness in some of these markets. Our Investment Management business has a good pipeline of funds to invest through its European platform."

In Asia, its expects the most recent in a succession of control measures imposed in mainland China and Hong Kong will have an impact on transaction volumes towards the second half of the year, however medium and long term it expects these markets to remain compelling.

CJ