29th Jun 2005 07:00
Savills PLC29 June 2005 SAVILLS plc ("Savills" or the "Company") 29 June 2005 Trading Update Savills, the international property consultants, is pleased to announce atrading update for the half-year, prior to the interim results for the firsthalf of 2005 which are scheduled for release on 7 September 2005. Overview At the time of our Annual General Meeting in early May, the Chairman reportedthat overall Savills had performed in line with expectations and ahead of thesame period last year. The current position is set out below. Main Business Streams Transactional The commercial property investment market throughout the UK remains strong andthe first half has seen a high level of transaction volumes. There is continueddemand for property from private and institutional buyers both in the UK andoverseas. Tenant demand in both London and the regional commercial markets remainssubdued. After a quiet start to the year, residential markets have seen more activity,particularly in London. Unit turnover in the prime markets is only marginallydown on the same period last year, but buyers in the regions are showing greatercaution. Markets for New Homes have been more affected than second handmarkets. In Asia, we have seen a marked increase in activity in the commercial andresidential investment markets, and tenant demand for office space hasincreased. Our European investment teams are performing well and the marketsremain strong. Consultancy Our Consultancy business has performed well. The demand for property servicesremains high and we have expanded our professional teams, particularly in theareas of valuation and planning. Property Management The UK and European commercial property management business has benefited fromorganic growth, acquisition and key recruitment. In Hong Kong and China wehave also increased the size and scope of our property and facility managementbusiness. Financial Services Our private client financial services business continues to perform well.Transaction volumes are ahead of the same period last year. Fund Management Cordea Savills continues to build on its existing infrastructure and to increaseits funds under management. International Financial Reporting Standards (IFRS) The Company has today, in a separate announcement, released details of thelikely impact on the Group's financial position and results for 2004 due to thechange from reporting under UK General Accepted Accounting Principles to IFRS. Outlook Strong investment markets in the UK, Europe and Asia will ensure that commercialactivity levels remain high in 2005. The current level of our residential orderbook remains encouraging but market volumes are not expected to be at theexceptional levels achieved in 2004, especially in the new homes market. Overall, we are confident that owing to the quality, flexibility and broad baseof our global businesses, we are well placed to meet our expectations for 2005. ENDS For further information, please contact: Savills Aubrey Adams 020 7409 9923 Citigate Dewe Rogerson Simon Rigby/Sarah Gestetner/George Cazenove 020 7638 9571 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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