8th Mar 2006 07:04
Savills PLC08 March 2006 WEDNESDAY 8 MARCH 2006 EXCELLENT YEAR FOR SAVILLS Savills plc, the international property adviser, today announces its results forthe year ended 31 December 2005. 21% growth in underlying earnings per share. Financial Highlights Underlying Results • Underlying Group profit before tax up 30% to £57.2m (2004 - £43.9m). Underlying profit is calculated by adjusting reported profit before tax to deduct profits on disposals of £0.4m (2004 - £11.2m) and share based payment adjustment of £1.9m (2004 - £3.9m) and add back amortisation of intangibles and impairment of goodwill of £0.9m (2004 - £0.6m). • Underlying revenue (excluding trading property sales) up 18% to £373.9m (2004 - £316.6m). • Underlying basic earnings per share (based upon underlying group profit) up 21% to 66.5p (2004 - 55.0p). Reported Results • Revenue up 14% to £373.9m (2004 - £328.0m). • Group profit before taxation of £58.6m (2004 - £58.3m). • Basic earnings per share of 67.2p (2004 - 72.7p). • Proposed final dividend up 28% to 16p per share (2004 - 12.5p). Peter Smith, Chairman of Savills plc, commented: "Savills has had an excellent year and I am delighted to report a strong set ofresults following good performances from all of our operating businesses. Confidence in investment markets remains strong and the residential primemarkets are resilient. We have enjoyed a positive start to the year and withthe increasing range of services we offer and geographical regions in which weoperate, we are confident that the Group is well placed to have a satisfactory2006." ***Chairman's Statement, Group Chief Executive's Review of Operations and Finance and Preliminary Announcement of Results to Follow*** Savills plc. Registered in England No. 2122174. Registered Office 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ For further information, contact: Savills 020 7409 9923 Aubrey Adams, Group Chief Executive Citigate Dewe Rogerson 020 7638 9571 Simon Rigby Sarah Gestetner George Cazenove There will be an analyst presentation today at 9.30 am at 25 Finsbury Circus, London EC2M 7EE. CHAIRMAN'S STATEMENT RESULTS Savills has had an excellent year and I am delighted to report a strong set ofresults following good performances from all of our operating businesses. Theresults for the year ended 31 December 2005 are reported in accordance withInternational Financial Reporting Standards (IFRS). Underlying Results • Underlying Group profit before tax up 30% to £57.2m (2004 - £43.9m). Underlying profit is calculated by adjusting reported profit before tax to deduct profits on disposals of £0.4m (2004 - £11.2m) and share based payment adjustment of £1.9m (2004 - £3.9m) and add back amortisation of intangibles and impairment of goodwill of £0.9m (2004 - £0.6m). • Underlying revenue (excluding trading property sales) was up 18% to £373.9m (2004 - £316.6m). • Underlying basic earnings per share (based upon underlying group profit) up 21% to 66.5p (2004 - 55.0p). Reported Results • Revenue was up 14% to £373.9m (2004 - £328.0m). • Group profit before taxation was £58.6m (2004 - £58.3m). • Basic earnings per share were 67.2p (2004 - 72.7p). • Proposed final dividend is up 28% to 16p per share (2004 - 12.5p). • Shareholders' funds increased to £167.7m (2004 - £103.5m). • Cash and cash equivalents increased to £99.9m (2004 - £89.9m). DIVIDENDS In the five years to 31 December 2005 reported earnings increased by an averageof 17% per annum and dividends by an average of 22% per annum. This year theBoard has recommended an increase in dividend of 28% with a final dividend of16p per share to those shareholders on the register on 18 April 2006, payable on18 May 2006. This gives a total ordinary dividend for the year ended 31December 2005 of 24p (declared in 2004 - 18.5p), in line with our currentprogressive dividend policy. KEY HIGHLIGHTS This year Savills continued with the selective expansion of its business in theUK, continental Europe and specifically in Asia, where we have now established amarket-leading presence in Korea. In the UK, Savills strengthened its commercial retail offering in Bristol andManchester and expanded its expertise in the London West End industrial servicessector. New offices were also opened in Horsham, Huntingdon, Islington,Tunbridge Wells and Weybridge, thereby expanding our presence in key primelocations. In continental Europe, as part of our continued strategy to grow our business inkey commercial centres, we acquired AWON Gestion, a Paris based propertymanagement business and also acquired 51% of Factor Immobilien Management GmbHin Berlin. In both Italy and Sweden we now offer valuation services. Since theyear-end we have opened a new office in Munich. In Asia, the investment and transactional markets in Hong Kong remained strong.We strengthened our valuation and professional services offering in Hong Kongand created Savills Professional Services, which includes a newly formed realestate investment trust (REIT) team. The property management team in Hong Kongacquired Showcase, a business specialising in exhibition and marketing servicesto office and retail landlords. Savills now provides the full complement ofagency, property management and professional services in Shanghai and Beijing aswell as in Hong Kong. During the year a new office was added in Macau. Asannounced on 19 December 2005 Savills further expanded its operations in SouthKorea with the acquisition of a 50% stake in Korean Asset Advisors and BHP Koreawhich provide property, asset management and brokerage services in Korea fromtheir office in Seoul. Our fund management arm, Cordea Savills has also had an excellent year, offeringan increased range of products to both institutional and retail clients in theUK and across Europe. Cordea Savills also increased funds under management,growing the Charities Property Fund and maintaining its position as the leadingproperty fund for UK charities. Cordea Savills Wealth Management established its brand and launched threeproducts: DIVERSE, QPC and Serviced Land Fund No 1. During the year Trammell Crow Company (TCC) exercised an option to acquireshares under a Deed of Option dated 9 May 2000. On 29 April 2005, together with1,677,970 ordinary shares acquired in the market, 5,243,229 ordinary shares wereallotted to TCC. TCC's total holding is therefore 19.43%. As announced on 8 December 2005, Daily Mail and General Trust plc made an offerfor Fastcrop plc, a public company in which Savills had a 13.72% shareholdingthrough its wholly owned subsidiary Savills (L&P) Limited. Fastcrop plc is theowner and operator of the Primelocation website. The proceeds on disposal ofour shareholding amounted to £6.2m and any resultant profit on disposal will berecognised in the 2006 financial year. SHARE BUYBACK PROGRAMME AND ANNUAL GENERAL MEETING At the last Annual General Meeting shareholders gave authority for a limitedpurchase of Savills shares for cancellation of up to 5% of the issued sharecapital. During the year ended 31 December 2005, 100,000 shares (0.15%) wererepurchased for cancellation under this programme. The Company may make furtherpurchases of shares under this authority in the open period up to the AnnualGeneral Meeting to be held on 10 May 2006. This programme has proved to be particularly earnings enhancing over the pastcouple of years. Shareholders will again this year be asked to consider aresolution to approve the re-purchase of shares. This is outlined in the Noticeof Annual General Meeting which will accompany the Report and Accounts for theyear ended 31 December 2005 and which will be distributed to shareholders at theend of March 2006. At the Annual General Meeting due to be held on 10 May 2006, it is the Board'sintention to make a recommendation to shareholders that the share capital ofSavills be sub-divided so that each shareholder will receive two shares forevery one share held. Subject to the satisfaction of any relevant regulatoryrequirements, further details of the proposed share split will accompany theNotice of Annual General Meeting which, together with the Report and Accountsfor the year ended 31 December 2005, will be distributed to shareholders at theend of March 2006. BOARD AND STAFF There have been no changes to the composition of the Board this year. As notedin our last Report and Accounts, with effect from 31 March 2005 Robert McKellartransferred to Hong Kong to take up the role of Chief Executive - Asia Pacific.Robert McKellar's Group financial responsibilities have principally been assumedby Danny O'Donnell, the Group Financial Controller. Savills' continued development and growth is a result of the committed anddedicated efforts of our talented staff whose continued ability to provide aprofessional service to our clients is the basis for the excellent resultsachieved in 2005; I thank them all for their contribution. Our reward system isan important mechanism in providing a balance between the interests of staff andshareholders. OUTLOOK Confidence in investment markets remains strong and the residential primemarkets are resilient. We have enjoyed a positive start to the year and withthe increasing range of services we offer and geographical regions in which weoperate, we are confident that the Group is well placed to have a satisfactory2006. Peter Smith, Chairman GROUP CHIEF EXECUTIVE'S REVIEW OF OPERATIONS AND FINANCE 2005 was an excellent year for Savills, as it expanded its range of propertyrelated services to the global market. Underlying pre-tax profits increased from £43.9m to £57.2m. Underlying profitis calculated by adjusting reported profit before tax to deduct profits ondisposals of £0.4m (2004 - £11.2m), share based payment adjustment of £1.9m(2004 - £3.9m) and add back amortisation of intangibles and impairment ofgoodwill of £0.9m (2004 - £0.6m). There was a smaller corresponding increase inunderlying earnings per share (based upon underlying group profit) from 55.0p to66.5p due to the dilutive effect of the issue of new shares to Trammell CrowCompany on 29 April 2005. In the UK, our Commercial business enjoyed another record year following rapidexpansion and success in acquiring significant new teams. We are recognised asone of the leading commercial property service providers with national coveragethrough specialised offices in the main business centres. The UK Residential business made a cautious start to the year but the marketregained confidence and the year finished on a much stronger note, particularlyin London. In Europe the main focus of our business is investment and, as with the UKmarkets, this remains strong. There is particular interest at the moment in theGerman market where international 'value' investors are particularly active. Asia Pacific had an outstanding year and overall revenue for that region nowconstitutes 26% of the Group's total. The largest part of our Asia Pacificprofits were generated in Hong Kong where we have a particularly strong marketposition. We continue to expand our business in China and have recently openeda new office in Macau, where the new casino developments will providesubstantial growth. TRANSACTIONAL ADVICE The Transactional Advice business stream comprises commercial, residential,agricultural agency and investment. During the year revenue was £166.9m (2004 -£146.3m), representing 45% of our total revenue, generating operating profits of£33.0m (2004 - £26.7m). Commercial Investment and Agency The investment markets performed well in 2005, as the positive money supply andincreasing demand from both institutional and retail investors continued todrive pricing. A significant deal was advising Land Securities on theacquisition of a retail warehouse and food store portfolio for £367m acquiredfrom LxB. During the year the combined team transacted over £16bn of deals,strengthening our position in the market. The International Investment team had another record year with net billings ofc£10.5m. The team continued to operate in a variety of markets including theUK, France and Italy with the majority of this year's income generated fromprojects in the UK; transactions totalled £1.57bn. Two highlights for the yearincluded advising on the sale of One Curzon Street on behalf of CGI for £280mand advising on the sale of the Lloyd's Building, London on behalf of DEKA for£231m. The Business Space team continued to take market share and one of the moreinteresting deals was the sale of Widewater Place, Harefield, Uxbridge on behalfof Invesco for £35m to Insight Investment. In January 2005, Savills and its partner Trammell Crow Company were appointed byNorwich Union to advise on its surplus properties throughout the UK. Theportfolio comprised more than 150 properties, with over 200 sub-leases and 1.69msq ft. The appointment was the result of a competitive tender by Norwich Unionand underlines Savills' capability to undertake multiple disposal transactionsfor major corporates. Our Birmingham Development team acted on behalf of Countryside Properties PLC injoint venture with Quintain Estates and Development PLC in the agreement andlease with Birmingham City Council to develop City Park Gate, an importantregeneration site on the edge of Birmingham city centre. The scheme willinclude up to 600 apartments, 150,000 sq ft of offices and a food store. Despite rapidly rising commercial rents, our Leasing teams in Hong Kong Islandand Kowloon increased revenue on the back of very strong tenant demand. InShenzhen, the Commercial Leasing team was appointed to let Great ChinaInternational Exchange Square, a project comprising eight stories of c10.0m sqft of retail and over c19.4m sq ft of office space. In Australia, despite a relatively weak sales and leasing market, profitabilityincreased. The Australian business has particularly strong operations inQueensland and Western Australia. The Sydney Commercial Leasing team, leasedeight floors of 60 Union Street, Pyrmont, Sydney totalling 181,135 sq ft toAmerican Express; this was the largest single leasing deal ever achieved bySavills in Australia. The sale of 400 William Street, Melbourne was the Melbourne central businessdistrict's largest site sale in 2005. Savills acted for the purchaser and hasbeen appointed leasing agents for the project. Retail and Leisure With a dedicated team throughout the UK, the Leisure team advised on all aspectsof the leisure industry in 2005. As part of its strategy for growth, theCommercial Leisure team expanded their expertise into asset management andinvestment sectors which culminated in leisure investment transactions in excessof £250m. In particular, we provided specialist asset management advice atPrintworks, Manchester, a 340,000 sq ft scheme owned by Henderson GlobalInvestors and British Airways Pension Fund; where we secured four new operatorsfor Printworks in 2005 and raised footfall by 15% in the same period. The Out of Town Retail team returned another strong performance despite someareas of the retail market showing signs of weakness. During the year, the teamfurther extended its nationwide coverage opening a new commercial office inBristol. The team were appointed by Matalan Plc as their national advisers toprovide portfolio asset management, acquisitions and disposals. In 2005, theteam advised on over 100 retail parks for major landlords such as British Land,Morley, Royal London Asset Management and Legal & General. Hotels and Healthcare The hotel investment market doubled in 2005 with strong operator demand; thedepartment capitalised on this by leading many transactions including Marstons,Queens Moat Houses and Radisson. The apart-hotel concept emerged and Savillsled the market on schemes throughout London and Europe. The Healthcare team had another strong year in which key valuation and agencystaff were recruited, thereby strengthening the team. The team have advised onand sold over £800m healthcare related properties and businesses in 2005. Institutional The specialist Institutional team has significant activity in the conferencecentre, schools and charity sectors. Highlights included the acquisition of theSundridge Park Hotel and Conference Centre (140,000 sq ft) on behalf ofCathedral Group Plc in a deal worth in the region of £15m. The team also workedwith the Healthcare team on retirement property projects with assets worth inexcess of £150m. An unusual sale was that of Green Island, in Poole Harbour,which had been used for a number of years by a charitable trust for holidays forthose with disabilities. This was acquired by a private purchaser for a sum inexcess of the £2.5m guide price. Residential Agency After a poor start to the year, the residential markets gained momentum andtraded well during the late spring and summer with a strong performance duringthe autumn. The average Savills property sold for £1.3m in London and £0.7m inthe country. Our Knightsbridge office was involved in two of the highest valueresidential sales in central London; a house in Belgrave Square, SW1 with anasking price of £33m; and the sale on behalf of Hammerson plc and Grosvenor ofDudley House, 100 Park Lane at a guide price of £40m. Other highlights included the sale of Maperton House, Somerset, voted CountryLife 'House of the Year' in excess of its £3.5m guide price, Tor Point in Surreyat a guide price of £5.2m and the Ward Estate on Loch Lomond sold for in excessof £3m, possibly the most expensive property in West Scotland during 2005. Residential Investment The Residential Investment team continue to value a wide range of investmentportfolios as well as several large portfolios for institutional clients andbanks, including a large investment portfolio of tenanted apartment blocksthroughout England on behalf of British Land with a value in the region of £30m. Purchasing Advice Prime Purchase, Savills' independent subsidiary which specialises in acquiringresidential property in both central London and the country for retainedclients, continued its impressive growth since it began in 2002, with anincrease in turnover of over 29% during the year. Of particular note was the purchase in London of the freehold of 4 WiltonCrescent and its mews house and in the country of West Court near Newbury, whichwas included in the Country Life List of the 10 best houses to have been soldduring the year. Country houses with amenity land of between 200 and 550 acreswere acquired for clients in Surrey, the Cotswolds and Devon. Over 55% ofpurchases in the country last year were secured for clients either privately orbefore marketing. Residential Letting With the opening of lettings businesses in Islington, Chiswick, Wimbledon andTunbridge Wells, residential lettings have continued to grow in an increasinglybuoyant market. Our core lettings business in London had a record year, whilstcountry lettings also showed growth with further scope for expansion. Averagerents have increased, particularly in the prime central London house market andthe large country house market. Auctions The auction market continues to grow in importance as a method of sale and thisyear we added a commercial auction department to complement our existingresidential auction team. Considerable synergy has developed between the twoteams that allows a comprehensive sales service to a full range of clients on awide range of property types which is reflected in our achieving sales of over£287m this year. We sold over 1,000 properties, with an overall success rate of85%; making Savills the fourth largest property auction house in the UK byvolume. The Commercial team sold over £104m in its first nine months trading and weexpect to improve on this figure with a full year's trading in 2006. The Auction business benefits considerably from our extensive office network;this year we created a Savills Auction Subscription Service which allowssubscribers to receive electronic catalogues and up-to-date research as well asfinancial market movements supplied by Savills Private Finance, our financialservices business. New Homes Following the expansion and growth of our New Homes department we now offerclients 22 specialised operations across the UK with further openings planned in2006. In 2005, we sold 3,922 units with a combined value of £1.4bn. Workingindependently or with Development and Planning disciplines we are now advisingon a substantial number of major regeneration schemes; it is hoped this willlead to significant instructions over the coming years. New instructions included Pan Peninsula by Ballymore Properties near CanaryWharf, a 340 unit development with a 50th floor cocktail bar and panoramic viewsover London. Launched in November, 143 reservations were received on launch day. We were also instructed by Arsenal Football Club plc on the development ofHighbury Stadium into 711 apartments with a total value of £300m; this schemewas launched in September 2005 with sales achieving record levels. Upper StrandDevelopments instructed us in a 500 unit development in Edinburgh's Grantondistrict, which forms part of one of the largest waterfront regeneration schemesin Europe. International New Homes The demand for residential and investment property abroad continues to expandboth in volume and exposure to new regions. "Leaseback" skiing properties inSwitzerland and France have been particularly popular for both investment andleisure opportunities. We have successfully introduced projects in a number ofemerging markets such as Croatia and Bulgaria and established a number of newlocal associations. Development The Development team has substantially grown and the future pipeline of bothconsultancy and agency instructions has increased significantly. The teammaintained an involvement in a number of major projects across Greater Londonwhich included consultancy work as part of the delivery of the Olympics'facilities in 2012. The Development & Regeneration team increased their involvement in public sectorprojects as key authorities have taken a role in the regeneration of east Londonand the Olympic area. Our expertise and market share in the delivery of major strategic developmentsoutside London have also been expanded. We are currently advising BP on twomajor new settlements: Harlow (8,000 houses) and Swansea (5,000 houses) and thedesign and format of the new settlements is being directed by the PrincesFoundation. Farm and Estate Agency 2005 has been a year of recovery in the agricultural agency market with morefarms for sale but supply still limited. The average value of farmlandincreased by 12% during the year. The finalising of European support paymentsin spring 2006 is expected to bring more normality to a market still trading onlow national turnover. Sale instructions ranged from Brook Hall in Suffolk(guide price £6.2m) to the Trewarthenick Estate in Cornwall (guide price £9m). CONSULTANCY Our Consultancy business generates fee income from a wide range of professionalproperty services including valuation, building consultancy, landlord andtenant, rating, planning, strategic projects and research. Operating profit forthe year was £12.9m (2004 - £10.9m) on revenue of £71.8m (2004 - £59.3m). Valuation The Commercial Valuation department is regarded as one of the leading valuationteams in the UK. Based in our principal offices of London, Manchester andEdinburgh, the team provides national and international advice on investment anddevelopment property for a range of purposes including advice to lenders forloan security purposes and to clients for litigation, stock exchange, tax andaccounts purposes. Over the course of 2005, the department expanded with theaddition of new consultants. The department valued in excess of £20bn of realestate assets and has provided independent valuation advice to over 50 differentlending organisations as well as many property companies and property owners. The Residential Valuation department is also a leader in providing valuation andinvestment appraisal services for loan security, acquisition, disposals andaccounts. We acted on behalf of Westminster City Council in the sale of theirheadlease in the landmark building Dolphin Square, Pimlico, to WestbrookPartners, a US property investment company, for a price in excess of £175m.Another key highlight was our appointment to manage and value the renownedPhillimore Kensington Estate in London, the first change in managing agents for200 years. The addition of the Phillimore Estate Management team has providedsynergy with the other portfolio and leasehold enfranchisement activities of thedepartment. The expanded Loan Security Valuation team valued in excess of £4bn ofresidential and mixed use development schemes and high value property. Inaddition to our valuation departments in London, valuations of both commercialand residential properties were undertaken in 22 offices throughout the countryfrom Edinburgh to Southampton and Norwich to Exeter. In Asia, Savills were successful in recruiting a 35 man professional team forHong Kong and mainland China, which specialises in valuation, land use rights,tribunal and other forms of consultancy. The team was very active in initialpublic offering ('IPO') and real estate investment trust ('REIT') consultancyadvice and was involved in the valuation of the property portfolio for thelisting of the Construction Bank of China, the largest global IPO in 2005. In Singapore, the acquisition of Valuers & Property Consultants (Singapore) PteLtd, a specialist valuation team, has increased our revenue and profileconsiderably. In Australia, the professional services division secured the appointment by theAustralian Department of Foreign Affairs and Trade to value 121 Australianembassies and ambassadorial residences globally. Building Consultancy The Commercial Building Consultancy business was reorganised in 2005 intospecialist service focused teams which enabled the business to take on morecomplex, high value projects. The Technical Due Diligence and Project Monitoring teams were involved in anumber of high profile commissions during the year including the survey of 12German shopping centres for the Kenmore Group and the construction monitoring ofa large City office building for DIFA, Deutsche Immobilien Fonds AG. They alsoacted for the Gatsby Charitable Foundation on feasibility work in relation totheir planned donation of c£45m to the University of Cambridge for theestablishment of a new institute for the study of plant diversity anddevelopment. The Lease Management team provided strategic dilapidations and service chargeadvice to some 120 landlord and tenant clients on claims and reviews between£10k and £25m. 40% of this work was undertaken in the capacity of expert indispute resolution procedures. The Project Management team undertook a number of projects for Japanese clientsincluding Mitsui & Co (UK) Plc, Japan Satellite Television (Europe) Ltd andSuzuki GB PLC. The Refurbishment team rolled out an improved full design and contractadministration service to their residential and commercial clients, securing 18new projects with a total value in excess of £20m. Industrial Building Consultancy has continued to expand its services in thelogistics and distribution sector having acted as 'Fund Surveyors' on over 2m sqft of new-build space for MetLife Investments and pre-acquisition support onaround 1.5m sq ft of new developments. Retailer and logistics occupier clientsinclude Mothercare and Frans Maas. Building consultancy services in our regional offices continued to grow at asteady rate with billings for Manchester and Birmingham reaching £1.6m. Theteam continues to be involved with Kenmore Group on pre-acquisition surveys andthe refurbishment of a number of buildings. Our professional team continue to undertake pre-acquisition surveys,dilapidations instructions and minor refurbishments on behalf of ICI DuluxDecorator Centres, who have become a key client. Close liaison with GreaterManchester Pension Fund has provided good instructions on the RoundthornIndustrial Estate where a number of refurbishments have been undertaken in thelast twelve months. Landlord and Tenant Following the negative rental growth during the last couple of years, themarkets have seen a return to positive growth in 2005, with the market nowgenerally optimistic about increased levels of rental growth in 2006 and beyond. During the year, the Rent Review team expanded through acquisition andrecruitment; retail specialists have been added in Bristol and London. We nowact for over 60 landlords in this high profile sector of the property market. Affordable Housing and Student Accommodation The department has continued to strengthen its profile in the specialistaffordable and student accommodation markets winning an increasing proportion ofagency instructions; the largest of which in 2005 was the disposal of a mixedstudent/affordable scheme in Brentford comprising accommodation of 1,000 beds. Rating Our specialist Rating department has been assisting business with all aspects ofrating for over 50 years. The department is now working on the 2005 listappeals; one supermarket has already had its 2005 list bill reduced by £0.25m. Planning The Planning division expanded in 2005, with teams operating from ten officesand increasing the diversity of our skills base to include urban design, masterplanning and environmental impact assessment alongside planning and retailconsultancy. Recent changes to planning legislation are producing a peak inplanning consultancy work and there are pressures to deliver high quality growthand regeneration. Our ability to integrate planning advice and urban designwith wider property and research skills enables us to produce developmentsolutions that are marketable, sustainable and most importantly can be deliveredthrough the planning process. Notable projects during the year included the promotion of several of thecountry's largest urban extensions including 14,000 new homes at Harlow and7,000 houses at Milton Keynes. In the energy and water industry sectors, wehave prepared an application and environmental impact assessment for the UK'slargest proposed windfarm in Scotland and we are handling a major new wastewater treatment facility on the south coast. Housing Consultancy The department reported its strongest financial performance since it wasestablished in 1989; a new team was recruited in Horsham which increased thesize of the team by 60%. Working internationally for the first time, the teamvalued several substantial housing portfolios. Strategic advisory work continuedto grow with a number of new instructions from national housing providers andstrong ongoing instructions for loan security valuations. Strategic Projects Our Telecoms team has significantly increased its market share and has ongoingwork with Vodafone, Orange and O2 as the mobile phone operators continue to rollout the 3G Network. Following the electricity regulator's last price review, there has been asignificant increase in activity as UK regional electricity companies invest inthe refurbishment of their networks and we are involved in managing theinterface between landowners and the construction teams. Portfolio valuation advice was provided to National Grid as part of its disposalof four of its distribution networks. In Australia, Savills announced the formation of a Strategic Project Deliverybusiness, which will focus on the delivery of infrastructure, commercial andindustrial projects. Research The Research department advised a wide variety of clients on investment,development, planning and other issues relevant to all sectors of the UK andoverseas property markets. Our prognosis for a soft landing in the UK housingmarket was proved to be correct; house price inflation in 2005 according to theGovernment's index looks set to be very close to our 2% forecast and ourforecast of falls in urban building land values was also correct, falling by-2.5% in 2005. The department continues to have involvement with some of the biggest UKdevelopment sites, providing in-depth studies of housing demand, pricing andphasing as well as ground-breaking research and information on place-making,plus the integration, management and funding of neighbourhood and commercialuses. In Asia, the Savills Research & Consultancy business provided economic andproperty market analysis for The Link Management on the £2.5bn governmentprivatisation of 180 retail and car park facilities. This was Hong Kong'slargest privatisation and the world's largest IPO of a real estate investmenttrust (REIT). Savills Research & Consultancy was appointed to advise on the successful launchin December 2005 of Prosperity REIT, established by Cheung Kong Holdings, HongKong's largest property developer. The REIT consisted of office and industrialproperties valued at approximately £338.0m. PROPERTY AND FACILITIES MANAGEMENT The Property and Facilities Management business continued to grow, generatingfee income from managing commercial, residential and agricultural properties.During the year, revenue was £104.4m (2004 - £85.8m), generating an operatingprofit of £7.8m (2004 - £6.0m). Facilities Management Savills Guardian, an integrated facility management business based in Hong Konghad another successful year. The business secured a Public Sector Associationcontract managing 5,000 housing units and a contract for hotel cleaning andmaintenance for Disneyland, Hong Kong. Overall margins in Hong Kong forGuardian are under pressure and the business is looking to mainland China andMacau to secure more lucrative contract margins. Commercial Management The UK Property Management business has continued to develop at an impressiverate in terms of overall turnover, quality of instructions and client profile.Organic growth has been achieved and our client base now represents the fullspectrum of UK property investors with each office acting for a mix of localinvestors and major funds. The team has successfully expanded a number ofexisting mandates from clients such as GE Real Estate, Morley Fund Managementand UBS. Of particular note is the recruitment of a three-man management team inBirmingham which has helped strengthen the department. A new managementdepartment has also been set up in Leeds and it is hoped that similar expansionin Bristol will follow. The Japanese business, which is headquartered in Tokyo, was acquired at the endof 2004 and generated property management and leasing revenues of £1.2m in 2005. Long term, Japan will be a key market for Savills in Asia and we aredeveloping our plans to grow our presence in the world's second largest realestate market. The property management business in Hong Kong increased revenues by 30% andacquired a business called "Showcase" which specialises in offering exhibitionand marketing services to office and retail landlords and has a close alignmentwith the property management business. In Korea, Savills acquired a 50% stake in Korean Asset Advisors and BHP Korea,approved by the Bank of Korea on 3 January 2006 and which operates property,asset management and brokerage services in Seoul. The business manages over 10msq ft of grade A office and retail space in Seoul and acts for key institutionalclients. The opportunities to expand and grow the Korean business areconsiderable and benefits are already emerging from synergies between ourbusinesses in China and Korea. Land and Farm Management 2005 began to see the countryside adjust to EU reform of the Common AgriculturalPolicy. Against this background of reform, Savills has been consolidating thegrowth of its rural business following the acquisition of Smith Woolley,Colvilles and Elvey & Co. This has broadened our network and skill baseallowing us to provide a much improved service to our clients and led toenhanced fee income. PROPERTY TRADING AND INVESTMENT As there were no properties held for sale during the year no revenue wasgenerated in 2005 (2004 - £13.0m) nor operating profit reported (2004 - £10.1m). FINANCIAL SERVICES The Financial Services division comprises Savills Private Finance Limited, whichprovides residential mortgage broking services, commercial debt brokingservices, commercial and private insurance services and associated financialplanning products. The division made operating profit of £4.4m (2004 - £3.9m)on a revenue of £25.8m (2004 - £20.1m). Savills Private Finance continued to trade well, especially in the high networth mortgage broking market. The Commercial Debt Broking, Financial Planningand Property Insurance divisions have also made significant contributions. Newoffices have been opened in Leeds, Sevenoaks and York bringing the total numberof offices to twenty. Despite an increase in fixed costs associated with theinvestment in and growth of the business, profit for the year was ahead of 2004. The business is now well placed to ensure further profit growth. FUND MANAGEMENT Cordea Savills, the Group's fund management business, made operating profit of£0.6m (2004 - loss of £0.5m) on revenue of £4.7m (2004 - £3.6m). Funds undermanagement expanded to £1.7bn during 2005 but the year was characterised byinvestment in infrastructure and developing a pipeline of new funds to belaunched in 2006. In the UK, Cordea Savills achieved strong investment performance for itsdiscretionary pension funds. The year was also notable for the growth of theCharities Property Fund, which expanded in size from £242m to £309m, making itthe leading property fund for UK charities. We launched our first pooledproduct aimed at UK and European pension funds: the Cordea Savills StudentManaged Hall Fund; this fund was seeded with £65m of halls purchased from UNITEGroup plc. 2005 also saw Cordea Savills Wealth Management establish its brandin the UK private investor market with the launch of its first three products:DIVERSE, QPC and Serviced Land Fund No 1. In Italy, Cordea Savills received approval from the Bank of Italy for an SGR(the regulated Italian fund management company) and an exceptional team has beenformed with Gerardo Solaro del Borgo appointed as Managing Director and RiccardoDelli Santi and Gualtiero Tamburini appointed as Independent Directors. Withstrong management and investment teams positioned in offices in Milan and Rome,the business is poised for further growth in the rapidly growing Italianproperty funds market. We expect Cordea Savills to emerge, in due course, as a major Europeaninvestment manager servicing the needs of a wide range of domestic andinternational clients. FINANCIAL HIGHLIGHTS: • Underlying Group operating margins of 14.3% (2004 - 13.2%). • Strong cash balances with a year-end balance of £99.9m, even after making an additional lump sum payment of £10m into the Pension Plan. • A very strong performance from Asia Pacific this year with turnover up 16% and operating profit up 30%. Acquisitions and Disposals During the year we have completed a number of acquisitions and disposals ofbusinesses or interests in ventures, both in the UK (in aggregate £9.4m) andoverseas (in aggregate £3.2m) including: • On 1 March 2005, Savills (L&P) Limited acquired Holden Matthews Estate Agents Limited. • On 31 March 2005, Savills SA acquired AWON Gestion, a Paris based property management business. • On 13 May 2005, Savills Commercial Limited acquired Mansfield Elstob Main Limited, a Bristol based commercial property services business. • On 22 June 2005, Savills PM Holding purchased Showcase Ltd. • On 13 October 2005, Savills (Overseas Holdings) Limited acquired a major shareholding in Factor Immobilien Management GmbH. • On 26 September 2005, Savills Commercial Limited acquired Brown Harknett International Limited. • On 7 October 2005, Savills Commercial Limited acquired S Y Moorhouse Wright Limited. • On 19 December 2005, Savills announced the acquisition of a 50% shareholding in Korea Asset Advisors and BHP Korea, which received formal approval from the Bank of Korea on 3 January 2006. Assets classified as held for sale On 16 December 2005, Savills announced the acquisition of 100% of the units in aproperty unit trust which owns a portfolio of three student accommodationbuildings operated by UNITE plc. The assets are to be used as seed capital for afund launched and managed by Cordea Savills. The assets acquired are recordedas held for sale and total cash consideration was £16.5m. Net cash outflow for investing activities during the year amounted to £31.8m(2004 - inflow of £3.1m). Aubrey Adams, Group Chief Executive SAVILLS plc CONSOLIDATED INCOME STATEMENT for the year ended 31 December 2005 Year ended Year ended 2005 2004 Notes £'000 £'000Continuing operationsRevenueRevenue 373,866 316,619Other revenue - sale of trading properties - 11,356 Total revenue 2 373,866 327,975 Employee benefits expense (227,510) (190,922)Depreciation expense (4,573) (4,051)Amortisation of intangibles & impairment of goodwill (1,465) (1,302)Changes in trading property stock - (9,177)Other operating expenses (85,914) (75,363)Profit on disposal of investment property - 8,094Profit on disposal of subsidiary, associate & available for saleinvestments 367 917 Operating profit 2 54,771 56,171 Finance income 3,940 2,361Finance costs (461) (584) 3,479 1,777 Share of post tax profit from associates and joint ventures 329 364 Profit before income tax 58,579 58,312 Income tax expense (including foreign tax of £4.3m (2004 - 4 (17,799) (17,340)£2.3m)) Profit for the year from continuing operations 40,780 40,972 Discontinued operationsLoss for the year from discontinued operations 3 (504) - Profit after income tax 40,276 40,972 Attributable to:Equity shareholders of the parent 39,974 40,690Minority interest 302 282 40,276 40,972 Earnings per shareFrom continuing and discontinued operationsBasic earnings per share 7 67.2p 72.7pDiluted earnings per share 7 62.6p 66.1p From continuing operationsBasic earnings per share 7 68.1p 72.7pDiluted earnings per share 7 63.4p 66.1p From discontinued operationsBasic earnings per share -0.9p 0.0pDiluted earnings per share -0.8p 0.0p Dividends per shareFinal dividend proposed 5 16.0p 12.5pDividends paid (ordinary and special) 5 40.5p 16.0p SAVILLS plc CONSOLIDATED BALANCE SHEET at 31 December 2005 31.12.05 31.12.04 Notes £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 14,679 11,922Goodwill 54,255 46,095Intangible assets 4,699 2,549Investments in associates and joint ventures 3,402 2,831Financial assets - Other investments - 3,834 - Available for sale investments 10 10,486 - Deferred income tax assets 23,892 17,333 111,413 84,564 Current assetsAssets classified as held for sale 64,853 -Work in progress 3,180 2,666Trade and other receivables 115,336 87,241Cash and cash equivalents 99,921 89,919 283,290 179,826 LIABILITIESCurrent LiabilitiesBorrowings 1,910 3,823Liabilities directly related to assets 48,867 -classified as held for sale Trade and other payables 136,102 113,367Current income tax liabilities 5,644 8,405Employee benefit obligations 1,739 1,499Provisions for other liabilities and charges 675 665 194,937 127,759 Net current assets 88,353 52,067 Total assets less current liabilities 199,766 136,631 Non-current LiabilitiesBorrowings 1,516 1,115Trade and other payables 989 2,269Retirement and employee benefit obligations 24,926 27,490Provisions for other liabilities and charges 1,708 1,999Deferred income tax liabilities 2,313 62 31,452 32,935 Net assets 168,314 103,696 EQUITYCapital and reserves attributable to equityholders of the parentShare capital 9, 11 3,325 3,026Share premium 11 80,885 43,114Other reserves 11 6,528 (1,243)Retained earnings 11 77,001 58,609 167,739 103,506 Minority interest 11 575 190 Total equity 168,314 103,696 SAVILLS plc CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2005 Year ended Year ended 2005 2004 Notes £'000 £'000CASH FLOWS FROM OPERATING ACTIVITIESCash generated from continuing operations 8 44,859 58,004Interest received 3,829 2,454Interest paid (461) (584)Income tax paid (15,564) (15,303) Net cash generated from operating activities 32,663 44,571 CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of subsidiary, net of cash disposed 120 4,666Proceeds from sale of property, plant and equipment 38 99Proceeds from sale of associates, joint ventures and investment property 503 15,628Dividends received 324 3,144Net loans (to)/repayments received from related parties (413) 96Acquisition of subsidiaries, net of cash acquired (7,528) (10,418)Acquisition of assets for sale (16,490) -Purchases of property, plant and equipment (7,268) (6,458)Purchases of intangible assets (872) (944)Purchase of investment in associates, joint ventures and other investments (176) (2,715) Net cash (used in)/generated from investing activities (31,762) 3,098 CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of share capital 38,075 903Proceeds from borrowings 706 1,605Repurchase of own shares (520) (5,751)Purchase of own shares for Employee Benefit Trust (4,158) (4,238)Repayments of borrowings (4,322) (7,598)Dividends paid (23,133) (9,309) Net cash generated from/(used in) financing activities 6,648 (24,388) Net increase in cash and cash equivalents 7,549 23,281Cash and cash equivalents at beginning of the year 89,919 67,625Effect of exchange rate fluctuations on cash held 2,453 (987) Cash and cash equivalents at end of year 99,921 89,919 SAVILLS plc CONSOLIDATED STATEMENT OF RECOGNISED INCOME & EXPENSE for the year ended 31 December 2005 Year ended Year ended 2005 2004 Notes £'000 £'000 Profit for the year 40,276 40,972 Revaluation of available for sale investments 6,582 -Actuarial loss on defined benefit pension scheme (7,301) (9,495)Tax on items directly taken to reserves 9,574 4,652Foreign exchange translation differences 2,702 (1,401)Net income/(expense) recognised directly in equity 11,557 (6,244) Total recognised income and expense for the year 51,833 34,728 Attributable to:Equity shareholders of the parent 51,621 34,427Minority interest 212 301 51,833 34,728 Effects of changes in accounting policies Attributable to equity shareholders of the parent - increase in retained earnings due to revaluation of availablefor sale investments on adoption of IAS 32&39 on 1 January 2005 960 - Attributable to minority interest - - 960 - NOTES 1. Basis of preparation The results for the year ended 31 December 2005 have been extracted from theaudited financial statements. The financial statements have been prepared inaccordance with International Financial Reporting Standards and IFRICinterpretations as adopted by the European Union and with those parts of theCompanies Act, 1985 applicable to companies reporting under IFRS. In preparing comparatives for 2004, the Group has chosen to utilise the IFRS1exemption from the requirement to restate comparative information for IAS32 andIAS39 on financial instruments. The financial information in this statement does not constitute statutoryaccounts within the meaning of s240 of the Companies Act 1985. The statutoryaccounts for the year ended 31 December 2005, on which the auditors have givenan unqualified audit report, have not yet been filed with the Registrar ofCompanies. The financial information in this statement has been prepared in accordance withthe IFRS accounting policies set out in the Group 2005 Annual Report & Accounts.These policies are in line with the press release entitled 'adoption ofInternational Financial reporting Standards' and issued on 29 June 2005. This isavailable on the Company's investor relations website at ir.savills.com. The preparation of financial statements in conformity with generally acceptedaccounting principles requires the use of estimates and assumptions that affectthe reported amounts of assets and liabilities at the date of the financialstatements and the reported amounts of revenues and expenses during thereporting period. Although these estimates are based on management's bestknowledge of the amount, event or actions, actual results ultimately may differfrom those estimates. 2. Segment analysis Year ended 31 Transactional Consultancy Property & Fund Property, Financial Unallocated TotalDecember 2005 Advice Facilities Management Trading & Services * Management Investment £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 RevenueUnited Kingdom - Commercial 60,759 39,850 32,838 4,733 - 3,211 127 141,518 - Residential 61,124 22,358 7,013 - - 22,596 - 113,091 121,883 62,208 39,851 4,733 - 25,807 127 254,609 Rest of Europe 15,148 2,112 4,642 - - - 39 21,941Asia Pacific 29,854 7,494 59,968 - - - - 97,316 Total revenue 166,885 71,814 104,461 4,733 - 25,807 166 373,866 Operating profitUnited Kingdom - Commercial 13,929 7,881 3,224 580 - 828 (4,335) 22,107 - Residential 10,120 3,946 857 - - 3,533 - 18,456 24,049 11,827 4,081 580 - 4,361 (4,335) 40,563 Rest of Europe 3,768 402 255 - - - 99 4,524Asia Pacific 5,223 676 3,503 - - - 282 9,684Operating profit/ 33,040 12,905 7,839 580 - 4,361 (3,954) 54,771(loss) Net Finance income 3,479Share of results of associates and joint ventures 329 Profit before income tax 58,579Income tax expense (17,799)Profit for the year from continuing operations 40,780 Year ended 31 Transactional Consultancy Property & Fund Property, Financial Unallocated TotalDecember 2004 Advice Facilities Management Trading & Services * Management Investment £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000RevenueUnited Kingdom - Commercial 51,785 34,068 24,481 3,637 12,953 2,575 - 129,499 - Residential 58,747 18,346 5,457 - - 17,477 - 100,027 110,532 52,414 29,938 3,637 12,953 20,052 - 229,526 Rest of Europe 11,143 1,120 2,320 - - - - 14,583Asia Pacific 24,611 5,723 53,532 - - - - 83,866 Total revenue 146,286 59,257 85,790 3,637 12,953 20,052 - 327,975 Operating profitUnited Kingdom - Commercial 12,645 7,010 1,933 (543) 10,100 744 (862) 31,027 - Residential 8,280 3,115 286 - - 3,163 - 14,844 20,925 10,125 2,219 (543) 10,100 3,907 (862) 45,871 Rest of Europe 2,289 226 318 - - - - 2,833 Asia Pacific 3,492 508 3,467 - - - - 7,467 Operating profit/ 26,706 10,859 6,004 (543) 10,100 3,907 (862) 56,171(loss) Net Finance income 1,777Share of results of associates and joint ventures 364 Profit before income tax 58,312 Income tax expense (17,340) Profit for the year from continuing operations 40,972 The unallocated segment includes holding company costs, group bonuses and otherexpenses not directly attributable to the operating activities of the Group'sbusiness segments. *For the purpose of the segmental information above, and to assist in thecomparison of segmental information, the benefit arising from the amortisationof the share based payment charge as discussed in more detail in note 6, isretained within the unallocated segment. 3. Discontinued operations Year ended Year ended 2005 2004 £'000 £'000 Revenue 149 -Expenses (869) - Loss before income tax (720) -Income tax credit 216 - Loss after income tax (504) - Student accommodation assets and associated debt were acquired during the yearas seed assets for a Cordea Savills fund to be launched in the 1st quarter 2006.It is expected the Group's share of these assets will be diluted to a smallholding of a maximum of 5% before the next balance sheet date and as such theseassets and associated liabilities are classified as held for sale. The loss for the year relates to losses on the mark to market of two interestrate swaps taken out on the loans secured on the properties. All operatingresults are classified under discontinued operations. The discontinuedoperations all relate to the unallocated segment. 4. Income tax expense The income tax expense has been calculated on the basis of the underlying ratein each jurisdiction adjusted for any disallowable charges. Year ended Year ended 2005 2004 £'000 £'000 United Kingdom corporation tax (13,009) (16,059)Foreign tax (3,964) (2,296)Deferred tax (826) 1,015 (17,799) (17,340) 5. Dividends Year ended Year ended 2005 2004 £'000 £'000 Amounts recognised as distribution to equity holders in the period:Interim dividend of 8.0p per share (2004 - 6.0p per 4,942 3,394share)Ordinary final dividend of 12.5p per share (2004 - 10.0p) 6,990 5,563Special dividend of 20.0p per share (2004 - nil) 11,128 - 23,060 8,957 Proposed final dividend for the twelve months ended31 December 2005 of 16p per share 9,861 - The Directors have recommended a final dividend for the twelve months ended 31 December2005 of 16 pence per ordinary share. The final dividend, if approved at the AnnualGeneral Meeting on 10 May 2006, will be paid on 18 May 2006 to shareholders on theregister as at 18 April 2006. 6. Underlying profit before tax Year Year ended ended 2005 2004 £'000 £'000 Reported Profit before tax 58,579 58,312Add back amortisation of intangibles (excluding software) & 913 639impairment of goodwillLess disposal of trading & investment properties, subsidiary,associates & available for sale investments (367) (11,190)Less Share based payment adjustment (1,934) (3,906) 57,191 43,855 The Directors regard the above adjustments necessary to give a fair picture ofthe underlying results of the Group for the period. The adjustment for Sharebased payment relates to the transitional impact of the new accounting standardaccounting for share based compensation. The annual bonus is paid in a mixture of cash and deferred shares and theproportions can vary from one year to another. Under IFRS the deferred shareelement is amortised to the income statement over the vesting period whilst thecash element is expensed in the year. The adjustment above addresses this bydeducting from profit the difference between the IFRS 2 charge and the value ofthe annual share award. 7. Basic & Diluted earnings per share Year to Earnings Shares EPS Earnings Shares EPS31 December 2005 2005 2005 2004 2004 2004 £'000 '000 Pence £'000 '000 Pence From continuing and discontinued operations Basic earnings per share 39,974 59,450 67.2 40,690 55,938 72.7Effect of additional shares - 4,418 (4.6) - 5,647 (6.6)issuable under option Diluted earnings per share 39,974 63,868 62.6 40,690 61,585 66.1 From continuing operations Basic earnings per share 40,478 59,450 68.1 40,690 55,938 72.7 Effect of additional shares - 4,418 (4.7) - 5,647 (6.6)issuable under option Diluted earnings per share 40,478 63,868 63.4 40,690 61,585 66.1 Adjusted underlying basic earnings per share Year to Earnings Shares EPS Earnings Shares EPS31 December 2005 2005 2005 2004 2004 2004 £'000 000 Pence £'000 000 Pence From continuing operationsBasic earnings from continuing 40,478 59,450 68.1 40,690 55,938 72.7operationsAmortisation of intangibles 639 - 1.1 639 - 1.1(excluding software) and impairment of goodwill after taxShare based payment adjustment (1,354) - (2.3) (2,734) (4.9)after tax -Less sale of trading properties - - - (1,525) (2.7)after tax -Less sale of investment property - - - (5,666) (10.1)after tax -Less sale of subsidiary, associate ( 257) - (0.4) (642) - (1.1)& available for sale investmentsafter taxAdjusted underlying basic earningsper share 39,506 59,450 66.5 30,762 55,938 55.0 8. Cash generated from continuing operations Year ended Year ended 2005 2004 £'000 £'000 Profit for the year from continuing operations 40,780 40,972 Adjustments for:Taxation 17,799 17,340Depreciation expense 4,573 4,051Amortisation of intangibles & impairment of goodwill 1,465 1,302Net finance income (3,479) (1,777)Share of post tax profit from associates and joint ventures (329) (364)Profit on disposal of investment property - (8,094)Profit on disposal of subsidiary, associates & available for saleinvestments (367) (917)Loss on sale of property, plant and equipment 364 193Decrease in property held for sale - 2,052(Decrease)/increase in provisions (833) 481Decrease in employee and retirement obligations (9,574) (13,964)Charge for share based compensation 1,913 1,144Provision against investments in associates and joint ventures 18 16 Operating cash flows before movements in working capital 52,330 42,435(Increase)/decrease in work in progress (431) 126Increase in debtors (23,471) (14,671)Increase in creditors 16,431 30,114 Cash generated from operations 44,859 58,004 9. Share capital On 29 April 2005 Trammell Crow Company (TCC) exercised an option to subscribefor 5,243,229 shares representing over 7% of the Group's share capital. This wasin accordance with the terms of an agreed Option Deed dated 9 May 2000, enteredinto at the time of the Strategic Alliance. The shares were issued at a price of701.28p, representing a 20% premium to the average closing mid-market price ofthe Ordinary Shares as taken over the preceding five days prior to exercise. 10. Available for sale investments The Group adopted accounting standards IAS 32 and IAS 39 covering financialinstruments from 1 January 2005 and this resulted in a change in the measurementof available for sale investments from cost to fair value. At 1 January 2005,this change resulted in an increase in the value of the Group's investments of£960,000 reflecting the valuation of certain of the Group's listed equityinvestments to market value. Further revaluations were made during the period relating to the Group'sinvestments in unlisted equity securities, the largest of which was an increaseof £4.9m relating to the Group's holding in Fastcrop plc. This investment hasbeen sold subsequent to year end. £'000 At 31 December 2004 -Adoption of IAS 32 & 39 - reclassification from other investments 3,834Remeasure to fair value 960 At 1 January 2005 4,794Additions 10Disposal (900)Revaluation 6,582 At 31 December 2005 10,486 Available-for-sale financial assets include the following: Listed securities UK - equity securities 10Unlisted securities UK - equity securities 7,618 UK - limited partnership 2,858 10,486 11. Statement of changes in equity Minority Total Attributable to equity holders of the Group interest equity Share Share Translation Revaluation Other Retained capital premium reserve reserve reserves earnings £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31 December 2004 3,026 43,114 (1,420) - 177 58,609 190 103,696Adoption of IAS 32 and IAS 39 - - - - 288 - 960 672Balance at 1 January 2005 3,026 43,114 (1,420) 672 177 58,897 190 104,656 Total recognised income and - - 2,792 4,900 - 43,929 212 51,833expense for the period Employee share option scheme:- Value of services provided - - - - - 1,913 - 1,913 Issue of share capital 304 37,771 - - - - - 38,075 Purchase of own shares (5) - - - 5 (520) - (520) Purchase of treasury shares - - - - - (4,158) - (4,158) Dividends - - - - - (23,060) (73) (23,133) Disposals - - - (598) - - - (598) Business combinations - - - - - - 246 246 Balance at 31 December 2005 3,325 80,885 1,372 4,974 182 77,001 575 168,314 Minority Total Attributable to equity holders of the Group interest equity Share Share Translation Revaluation Other Retained capital premium reserve reserve reserves earnings £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2004 3,070 42,237 - - 107 40,564 562 86,540 Total recognised income and - - (1,420) - - 35,847 301 34,728expense for the periodEmployee share option scheme: - Value of services provided - - - - - 1,144 - 1,144 Issue of share capital 26 877 - - - - - 903 Purchase of own shares (70) - - - 70 (5,751) - (5,751) Purchase of treasury shares - - - - - (4,238) - (4,238)Dividends - - - - - (8,957) (352) (9,309) Business combinations - - - - - - (321) (321) Balance at 31 December 2004 3,026 43,114 (1,420) - 177 58,609 190 103,696 Copies of this statement are being sent to shareholders and are available from: Savills plc, 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ Telephone: 020 7409 9928 Fax: 020 7491 0505 Email: [email protected] Contact: Victoria Grady In addition, with prior notice, copies in alternative formats i.e. large print, audio tape, braille are available if required from: Lloyds TSB Registrars, The Causeway, Worthing, West Sussex BN99 6DA This information is also available on the Company's website at: www.savills.com End This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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