20th Mar 2014 09:33
LONDON (Alliance News) - Property adviser Savills PLC Thursday reported higher profits and revenues for 2013 as property transactions picked up in markets including the UK, US and parts of Asia, a trend it expects to continue this year.
The company, which provides property advisory, management and transactional services in markets across the world, said 2014 has got off to a good start. It is seeing a slowdown in the Hong Kong property market, but said it expects this to be offset by growth elsewhere in Asia.
It reported a pretax profit of GBP70.1 million for 2013, up from GBP52.0 million in 2012, as revenues rose to GBP904.8 million, from GBP806.4 million. Its net profit rose to GBP50.8 million, from GBP36.8 million.
Savills raised its final and supplementary interim dividends to 15.5 pence a share, from 12.7 pence a year earlier, meaning the total dividend for the year was 19.0p, up from 16.0p.
It said UK commercial property transaction profits rose 58%, reflecting an increased market share in prime central London transactions and a progressive recovery in UK regional markets. Profits were up 34% in UK residential transactions, and 14% in Asia Pacific commercial as growth in Australia, South Korea and Japan more than offset the slowdown in Hong Kong.
Consultancy profits rose 26% on the back of strong performances in the UK and Europe, while its Cordea Savills investment management business increased assets under management by 17% to GBP4.2 billion.
Revenues in its property management business grew 9%, but underlying profits fell 2% due to costs for restructuring its European business and investments it has made in its business growth.
"In the UK, we expect continuing demand for London property and recovery in the regional markets, although availability of commercial stock, in particular, is increasingly a challenge," Chief Executive Jeremy Helsby said in a statement.
"In Asia, whilst we expect the reduction in trading volumes in Hong Kong to persist for at least the first half of the year, this should be mitigated, in part, by the strength of other regions across Asia. We also expect to show a continued improvement in our businesses in Continental Europe and the US," he added.
Savills shares were up 4.1% at 641 pence Thursday morning, the top gainer on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Savills