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REG - Savills PLC - AGM Statement

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RNS Number : 0942L  Savills PLC  11 May 2022

 

11 May 2022

SAVILLS PLC

("Savills" or "the Company")

Trading update

 

Ahead of its Annual General Meeting (AGM) to be held at 12 noon today at
 Savills, 33 Margaret Street, London W1G 0JD, Savills plc, the international
real estate advisor issues the following trading update:

 

·      Both our Transactional and Less Transactional businesses are
performing in line with our expectations for the period to date

·      The war in Ukraine, inflation and the rising interest rate cycle
have somewhat tempered transactional activity, particularly in the smaller lot
sizes both in terms of capital transactions and leasing take-up with activity
skewed towards larger transactions

·      Residential markets in the UK have performed well albeit stock
availability continues to be significantly reduced compared with the
equivalent prior year period

·      Continued COVID and travel restrictions, particularly in Hong
Kong and Mainland China have reduced activity in both the leasing and capital
transaction markets

·      Subject to exacerbation of current geopolitical risks and any
potential further waves of COVID-related restrictions, the Board remains
confident in its expectations for the full year

 

 

Mark Ridley, Chief Executive, commented:

 

"2022 has presented a number of heightened macro-economic, geopolitical,
supply chain and, in some locations, continued COVID-related risks both to
investors and corporates and to people's personal lives. I am delighted with
the responses of our people and our clients specifically in respect of support
for Ukraine, but also for their resilient approach to doing business in
challenging circumstances.  We have performed well so far this year and, with
our strong balance sheet, we are continuing to undertake a variety of business
development activities across the Group to further enhance our service to
clients worldwide."

 

 

Trading Update

 

In the Asia Pacific region, the recovery has been most evident throughout the
period in Singapore, Australia, Japan and Vietnam. Greater China, although
below our original expectations for 2022, has performed resiliently in the
face of continued significant COVID-related restrictions. Throughout the
period, our substantial Property and Facilities Management business in the
region has performed well.

 

In the UK, our performance has continued strongly, driven primarily by the
continued high levels of activity in the transactional markets, albeit
residential activity has, as anticipated, been somewhat lower than the
unusually strong 2021 comparative period.  Our less transactional service
lines have performed in line with our expectations to date. Overall, the UK
has traded slightly better than anticipated.

 

In Continental Europe and the Middle East, where Savills is more dependent
upon transactional activity, performance has improved compared with both the
prior period and our original expectations for the year to date, although we
remain conscious that supply chain issues (particularly energy), inflation and
the rising interest rate environment pose a challenge to a number of European
economies.

 

In North America, where the Group is substantially dependent upon leasing
activity by corporate occupiers, our business performance has been in line
with our expectations and has improved significantly over the prior
comparative period.

 

Savills Investment Management has traded in line with our expectations, albeit
in an environment where a number of markets and sectors remain challenging for
the deployment of equity capital. Debt markets have remained highly attractive
for investors and DRC Savills has performed well to date.

 

 

Outlook

 

Savills has traded well so far in 2022. There remains significant investor
interest in the secure income characteristics of real estate and occupiers are
progressively focussing on improving the sustainability characteristics of
their portfolios as well as creating environments in which staff can thrive.
These positive trends stand against a backdrop of geopolitical, economic,
practical (supply chain) and, in some cases, COVID-related challenges.

 

Whilst the Board is mindful of the backdrop, it remains confident in its
expectations for 2022 as a whole.

 

We anticipate announcing the Group's Half Year Results for the six months to
30 June on 11th August 2022.

 

For further information, contact:

 

Savills
 
020 7409 8934

Mark Ridley, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

 

Tulchan Communications
                            020 7353 4200

Mark Burgess

Elizabeth Snow

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