Europe drags down Savills
Property consultancy Savills has reported a slump in pre-tax profits as it battles a Eurozone recession and caution in Asia.
Property consultancy Savills has reported a slump in pre-tax profits as it battles a Eurozone recession and caution in Asia.
Revenue for the half year to the end of June was £353.3m, up 5% on the prior year but underlying profits before tax fell 4% to £19.7m.
The group has raised its interim dividend by 5% to 3.3p per share.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Savills now gets 60% of its income from consultancy and property management. That side of the firm, as well as the key "transactional" businesses (estate agencies) in the UK and Asia Pacific have done well. Continental Europe, unsurprisingly, remains problematic although Savills says it has managed to reduce losses.
The group says it sees "no material change" for the outlook of the business. Asia will improve, the UK is difficult to read because of the August holiday and the Olympics, while in Europe property deals will "remain unsettled in core markets and very subdued in southern Europe." The US is described as having a "healthy pipeline of business".
At 8:32 Savills' shares were up 0.2%
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published