Savills has announced increased revenue of 5% – but a 9% drop in profits due to a fall in transaction earnings.
However, Jeremy Helsby, group chief executive, said the results for the first half of this year were better than expected.
He said it was hard to predict trading conditions in the UK for the rest of this year, but that non-transactional business across the group was performing well.
In the UK, residential transaction fee income dropped by 5% to £45.7m, down from £47.9m in the first half of last year.
Savills said there had been a cooling of activity in secondary London sales and a small rise in sales in the country. The average London agency transaction value remained broadly unchanged at £2.74m, while the average country transaction value rose by 7% to £1.1m.
The company warns: “In recent weeks we have seen a more general reduction in activity, although it is still too early to tell whether this is indicative of a longer-term slowdown or simply a short-term hiatus caused, in part, by the Olympics and the holiday period.”
Group revenue was £353.3m, up from £335.8m in the same period last year. Group profits before tax were £18.2m, down from £20m.
.png)
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
Comments
Savills have been slowly dumbing the brand down, buying in to the low end market, for example buying Dickens Watts in Peterboro, hardly a good match for their “core” as could be said to their move into the Repo market. All very down market, perhaps that’s what’s driving their fees downwards as they follow a gutter agency model rather than where they are strong, in the up market sector.
I'm not surprised Savills' profits are falling. When I hear that they are taking instructions at a ridiculous 1% when they could easily secure 2-2.5% they only have themselves to blame. Great brand - weak or poorly trained staff!
“In recent weeks we have seen a more general reduction in activity, although it is still too early to tell whether this is indicative of a longer-term slowdown or simply a short-term hiatus caused, in part, by the Olympics and the holiday period.”..................It's a no brainer. Of course its the former unless you believe in the Easter Bunny.