Savills profits soar on back of London boom

Savills has posted increased revenue and profits for the first half of this year.

Its revenue was up 10% to £335.8m, with profit before tax up 39% to £20m, up from £14.4m for the same period last year.

Savills’ UK residential transaction fee income increased by 22% to £47.9m.

The firm’s performance was driven by booming demand for prime central London property.

Savills says it substantially increased its market share in properties valued over £5m, with transaction volumes for such properties above previous peak levels.

However, it notes: “In contrast, the country market remained quiet for much of the period, with 16% fewer exchanges than H1 2010. We anticipate that this two-tier market will continue through the second half and into 2012.”
 
The group also reported continued investment in new teams and offices across the Savills network.

Jeremy Helsby, group CEO, said: “Our commitment to hiring the best people and providing the very highest levels of service to our clients has helped us to extend our market share in the UK and Asia.

“We have continued to invest across the business, through selective acquisitions, further recruitment and expansion in core regions. We will continue to take advantage of selective growth opportunities to improve our service offering to clients.

“Looking to the second half, we currently see no material change in the outlook for our business, although the potential effects of the current economic and social volatility are likely to have some impact on both commercial and residential transaction markets across our regions.

“In the UK and continental Europe, we expect transaction markets to remain unsettled, although the fundamentals of the prime London residential market remain positive.”