REG - Savills PLC - Final Results
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RNS Number : 3869W Savills PLC 12 March 2026
12 March 2026
Savills plc
RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2025
Strong performance highlighting Group's resilience and accelerating momentum
Savills plc ('Savills' or the 'Group'), the global real estate advisor,
announces its full year results for the year ended 31 December 2025 (the
'period').
Summary financials
£m unless otherwise stated FY25 FY24 Change
Group revenue 2,551 2,404 +6.1%
Underlying profit before tax 1 (#_ftn1) 145.3 130.4 +11.4%
Reported profit before tax 101.0 88.3 +14.4%
Underlying basic EPS(1) 77.2p 66.2p +16.6%
Reported basic EPS 52.0p 39.4p +32.0%
Total dividend per share 33.8p 30.2p +11.9%
Net cash (as at 31 December) 2 (#_ftn2) 167.7 176.3 - 4.9%
Key highlights
· Strong revenue growth, up 6% (8% in constant currency 3 (#_ftn3) ),
with year-on-year growth reported across all four business areas and all three
regions:
- Group's Transactional business, which provides capital and leasing
advisory services to commercial and residential owners and occupiers,
delivered revenues up 4% (6% in constant currency).
- Group's Less Transactional businesses, comprising Property and
Facilities Management, Consultancy and Investment Management, continued to
deliver strong revenue growth, up 8% (9% in constant currency).
· Group's underlying profit before tax increased 11%, with
Transactional profits up 13% and Less Transactional profits up 15%
highlighting operational gearing and benefits of prior year restructuring.
· The Board is recommending a final ordinary dividend of 15.7p per
share (2024: 14.5p) and a 24% increase in the supplemental dividend to 10.7p
per share (2024: 8.6p), giving proposed total dividend per share of 33.8p
(2024: 30.2p).
· CEO and CFO succession completed.
· Building on strong foundations, the Group sets out its clear
strategic priorities to drive sustainable growth and margin improvement, while
maintaining focus on disciplined capital allocation and shareholder value
creation (incl. attractive distribution policy).
Outlook
Clearly, it is difficult at this stage to assess the potential impact of the
conflict in the Middle East, including any broader macroeconomic or
geopolitical effects. The Group has approximately 800 colleagues in the
region, representing c. 5% of underlying profit before tax in FY25, and our
immediate focus has been on ensuring that they remain safe.
Notwithstanding the above, we have seen continued momentum across global real
estate markets during the first couple of months of 2026 and are expecting
progressive growth in investment activity across our key markets in the year.
The Group continues to build strong commercial transactional pipelines and
expects to see further improvement in Transaction Advisory profitability in
2026 from operational leverage and restructuring benefits. The Group's strong
portfolio of Less Transactional businesses is expected to continue to deliver
revenue and profit growth, in line with the Group's expectations.
Commenting on the results, Simon Shaw, Group Chief Executive of Savills plc
said:
"Despite the well-rehearsed challenges of tariffs and fiscal uncertainty, the
Group has delivered a strong performance across the board. Whilst our
Transaction Advisory business faced more challenging market conditions during
Q2 and Q3 in some of our key markets, we continued to build strong
transactional pipelines and were well positioned as clients' confidence and
appetite to transact accelerated into Q4, resulting in the strongest Q4 for
our Transactional business since 2019. Our Less Transactional businesses
delivered another year of strong revenue and profit growth and underpinned the
strong cash generation, step up in earnings and dividend growth for the
Group."
Analyst and investor presentation
A presentation for analysts and investors will be held at 9:00am today, 12
March 2026, at Savills, 33 Margaret Street, London, W1G 0JD.
A live webcast of this event is available on our corporate website at
https://ir.savills.com/ (https://ir.savills.com/) or via the following link
https://stream.brrmedia.co.uk/broadcast/698b43f10453ba0012d21842
(https://stream.brrmedia.co.uk/broadcast/698b43f10453ba0012d21842)
A playback facility will be available shortly afterwards at
https://ir.savills.com/ (https://ir.savills.com/)
For further information, please contact:
Savills plc 020 7409 8934
Simon Shaw, Group Chief Executive Officer
Nick Sanderon, Group Chief Financial Officer
Susie Bell, Investor Relations Director
Teneo Communications 020 7353 4200
Nick de Bunsen
Anthony Di Natale
Forward looking statements
Certain statements in this announcement are forward-looking statements
relating to the Group's operations, performance and financial position based
on current expectations of, and assumptions and forecasts made by,
management. They are subject to a number of risks, uncertainties and other
factors which could cause actual results, performance or achievements of the
Group to differ materially from any outcomes or results expressed or implied
by such forward-looking statements. Such forward looking statements should
therefore be construed in light of such risks, uncertainties and other factors
and undue reliance should not be placed on them. They are made only as of
the date of this announcement and no representation, assurance, guarantee or
warranty is given in relation to them including as to their accuracy,
completeness, or the basis on which they are made. No obligation is accepted
to publicly revise or update these forward-looking statements or adjust them
as a result of new information or for future events or developments, except to
the extent legally required. Nothing in this statement should be construed as
a profit forecast.
CHAIR'S STATEMENT
Results overview
Group revenue increased by 6% to £2.6bn (2024: £2.4bn), representing growth
of 8% on a constant currency basis. The Group's Transactional businesses
delivered revenue growth of 4% during the year, despite challenging market
conditions, particularly in Q2 and Q3, driven by heightened geopolitical and
economic uncertainty. During this period, transaction pipelines continued to
build globally as many investors and occupiers deferred completion decisions
while maintaining work in progress. As market sentiment improved, the Group
delivered a very strong close to the year in Q4. The Group's Less
Transactional businesses of Consultancy, Property and Facilities Management
and Investment Management grew revenue by 7.5% in aggregate, with Consultancy
delivering particularly strong growth of 11%.
The Group's underlying profit increased by 11% to £145.3m (2024: £130.4m),
with the margin increasing by 30bps to 5.7% (2024: 5.4%). The Group's reported
profit before tax increased by 14% to £101.0m (2024: £88.3m), representing a
reported pre-tax profit margin of 4.0% (2024: 3.7%). Currency movements in the
year reduced revenue by £34.6m, underlying profit by £0.9m and reported
profit before taxation by £0.4m.
Underlying profit in the Transactional businesses increased by 13%, reflecting
inherent operational gearing and the benefits of restructuring undertaken in
prior periods in certain markets.
The Group's strength across its Less Transactional service lines continued to
provide a resilient earnings stream delivering a 15% increase in underlying
profit. The strong revenue performance of our Consultancy business flowed
through to the bottom line with a 19% increase in underlying profit. Savills
Investment Management delivered a 38% increase in underlying profit, with some
signs of market recovery and the benefit from cost saving initiatives in the
prior year coming through.
The Group delivered increased revenues and underlying profit across all three
regions, EMEA, Asia Pacific and North America, with the Continental Europe and
Middle Eastern business, which has been the focus of significant management
action, delivering a marked improvement for the second consecutive year,
reporting a break-even position in 2025 (2024: £7.4m underlying loss).
In response to the further challenges faced during the year, the Group
implemented additional restructuring initiatives, particularly within the
German business and in mainland China. The Group recognised restructuring
costs of £30.5m during the year (2024: £17.2m).
The Group continued to maintain a strong liquidity position with net cash
(cash and cash equivalents net of borrowings and overdrafts) of £167.7m at
year-end (2024: £176.3m).
Market conditions
Overall, global commercial property investment rose by 15% in 2025, driven in
large part by the US, the world's largest market, which recorded a 20%
increase during the year. Elsewhere, market conditions were less favourable,
with macroeconomic headwinds and geopolitical uncertainty, in particular the
imposition of US tariffs, weighing on investor and occupier sentiment. By the
end of Q3, the US was still the only market to record year-on-year transaction
volume growth. However, recovery in EMEA and parts of Asia Pacific was
manifested in a marked increase in investment volumes during the fourth
quarter.
In the UK, commercial property investment showed modest growth during the
year, supported by improved activity in the office and industrial sectors,
while London remained the leading global destination for cross-border capital.
Residential market conditions were more subdued, with cautious buyer sentiment
and ongoing tax-related uncertainty ahead of the Autumn Budget weighing on
activity at the prime end of the market. That said, the Budget ultimately
delivered the least worst outcome for this market, contributing to a
significant surge in completions in December.
Across Europe, investment activity improved gradually during the year as
institutional capital returned, while occupiers continued to favour
high-quality, ESG-compliant assets. In contrast, non-core locations
experienced further softening, underlining the trend for markets to polarise
between Prime Grade A and Secondary stock. The German market, down more than
50% from its pre-covid levels, continued to face challenging conditions.
In the Middle East, market conditions remained supportive, with residential
and office activity in the UAE benefiting from strong inflows of
high-net-worth individuals and a favourable business environment.
In North America, where the Group's business is predominantly focused on
leasing for occupiers, office leasing activity strengthened during the year,
supported by stricter return-to-office mandates and sustained demand for
high-quality, best-in-class space.
Business development
Savills continues to focus on the strategic development of the Group and on
enhancing its client offering. Supported by the Group's strong balance sheet,
these initiatives position Savills well as global markets continue their
recovery.
During the year, the Group strengthened its market-leading position in Ireland
and further deepened its expertise through the acquisition of the
well-established and highly regarded commercial property agency, Osborne King
& Megran Ltd ('Osborne King'), in April 2025.
In North America, the Group acquired Richard L. Hoffman & Associates Inc.,
a leading management consultancy, together with Compustall Services Inc., a
technology relocation services provider ('Hoffman'). These acquisitions
represent a further expansion of the Group's integrated service platform,
enabling Savills to offer clients a single, seamless solution for the planning
and delivery of complex workplace transitions across multiple sectors and
geographies.
In December, the Group acquired an initial 70% interest in K&T Investment
Pte Ltd ('Alpina'), a leading mechanical and electrical engineering
consultancy in Singapore. This, together with the Group's existing Property
and Facilities Management capabilities, enables Savills to provide a
fully-integrated Facilities Management service to both public and private
sector clients in that market.
Technology
Technology remains a key focus for the Group, and we continue to benefit from
investments made through Grosvenor Hill Ventures globally, as well as our own
digital programmes. We continued to invest in our proprietary technology
platforms, including enhanced property management systems in mainland China
and Germany, supporting future performance in these markets. Significant
investment in technology also underpins our leading UK residential sales and
lettings business, ensuring we remain at the forefront of service and
efficiency.
Within Savills Earth, our sustainability consultancy, we launched the Savills
Carbon Pioneer tool, which enables rapid, early-stage assessments of an
asset's net zero potential and decarbonisation pathway, providing clients with
actionable insights to support their sustainability ambitions.
Our AI strategy encompasses all our service lines. The core of our development
is to apply AI to our proprietary data and core workflows, built from decades
of transactions, research, and on-the-ground expertise. In so doing we are
able to process complex market information more efficiently and surface
insights more quickly. This enables our experts to focus on what matters most:
judgement, strategy, and delivering outcomes that truly benefit our clients.
Because our AI is grounded in real activity and local market nuance, not
abstract models, our advice is faster, deeper, and tailored, giving clients a
perspective that combines rigorous evidence with practical insight. We are in
the early to mid- phase of developing these tools, having invested significant
time and money over the last 5 years accumulating and curating data feeds from
our own and external sources.
Looking ahead, AI will play an increasingly central role in delivering
proactive, tailored advice, helping us spot opportunities sooner and align
insights more closely with each client's objectives. Throughout this
evolution, human oversight and clear governance remain at the heart of how we
work. AI enhances the expertise of our professionals; it does not replace it.
The outcome is smarter, more informed decisions, delivered with the rigour,
accountability, and trust that our clients have come to expect.
Board
As announced in April, Mark Ridley retired on 31 December 2025 after 29 years
with Savills, including seven as Group Chief Executive. The Board thanks him
for his significant contribution, and he will continue to support the business
in a senior advisory role for a period of up to 18 months.
Simon Shaw succeeded Mark as Group Chief Executive on 1 January 2026. Simon
joined Savills as Group Chief Financial Officer in 2009 and will lead the
Group through the next phase of its global development.
Nick Sanderson joined as Group Chief Financial Officer on 9 February 2026 and
was appointed as a Director with effect from 12 March 2026. He was formerly
Chief Financial and Operating Officer of Great Portland Estates plc, a FTSE
250 central London REIT.
Dividends
An interim dividend of 7.4p per share (2024: 7.1p), amounting to £10.1m was
paid on 29 September 2025, and a final ordinary dividend of 15.7p per share
(2024: 14.5p) is recommended, making the ordinary dividend 23.1p per share for
the year (2024: 21.6p). A 24% increase in the supplemental dividend to 10.7p
per share (2024: 8.6p) is declared, reflecting the improved underlying
performance of our global Transaction Advisory business. Taken together, the
ordinary and supplemental dividends comprise an aggregate distribution for the
year of 33.8p per share, representing an increase of 12% on the 2024 aggregate
ordinary and supplemental dividend paid of 30.2p.
Subject to Shareholder approval of the proposed final dividend at the AGM on
13 May 2026, the aggregate final and supplementary interim dividends of 26.4p
will be paid on 18 May 2026 to Shareholders on the register at 10 April
2026 4 (#_ftn4) .
People
The Board would like to express its sincere gratitude to all our employees for
their exceptional dedication and hard work throughout the past financial year.
Despite challenging markets, particularly in Q2 and Q3, the Group delivered a
strong performance. The commitment of our people was vital to this
achievement. As we look forward, the Board is confident that our ambition and
our ability to 'be extraordinary together' will drive our growth in 2026 and
beyond.
Summary and outlook
The Group's improved performance in 2025 reflects the continued robust
earnings provided by its Less Transactional businesses, together with the
benefit of inherent operating leverage as global transactional markets
partially recovered.
We start the year with good transactional pipelines in most geographies and an
expectation of progressive growth in global activity over the course of the
year which, supported by our strong portfolio of Less Transactional business
lines, positions the Group well for continued recovery in its financial
performance.
Stacey Cartwright
Chair
REVIEW OF OPERATIONS
Savills business and geographic diversity were key to achieving the year's
results. Our performance by business line was as follows:
Revenue £m Underlying profit/(loss) £m
2025 2024 % change 2025 2024 % change
Transaction Advisory 966.2 929.6 4 47.1 41.6 13
Property and Facilities Management 943.3 888.1 6 52.2 49.2 6
Consultancy 546.6 492.3 11 47.5 39.9 19
Investment Management 94.8 94.0 1 13.9 10.1 38
Unallocated - - n/a (15.4) (10.4) n/a
Total 2,550.9 2,404.0 6 145.3 130.4 11
Overall, our Commercial and Residential Transaction Advisory business revenue
represented 38% of Group revenue (2024: 39%) and delivered revenue growth of
4% year-on-year despite continued market volatility. Of this, Residential
Transaction Advisory represented 12% of Group revenue (2024: 11%). Our
Property and Facilities Management businesses continued to perform well,
growing revenue by 6% year-on-year and representing 37% of Group revenue
(2024: 37%). Our Consultancy businesses increased revenue by 11% and
represented 21% of revenue (2024: 20%). Investment Management saw a 1%
increase in revenue and represented 4% of Group revenue (2024: 4%).
Our performance by region is set out below:
Revenue £m Underlying profit/(loss) £m
2025 2024 % change 2025 2024 % change
EMEA 1,501.8 1,386.5 8 121.2 107.9 12
Asia Pacific 716.7 702.6 2 33.6 29.6 14
North America 332.4 314.9 6 5.9 3.3 79
Unallocated - - n/a (15.4) (10.4) n/a
Total 2,550.9 2,404.0 6 145.3 130.4 11
The EMEA business increased revenues by 8% and represented 59% of Group
revenue (2024: 58%), with the UK business increasing revenues by 6% and
representing 40% of Group revenue (2024: 40%). Our Asia Pacific business
represented 28% of Group revenue (2024: 29%) with our North American business
representing 13% of Group revenue (2024: 13%).
In North America and Continental Europe and the Middle East, improvements in
revenue together with the benefits of restructuring in the prior year
substantially improved profitability. Further restructuring was conducted
during the year in specific countries including Germany and China where the
market outlook dictated the need for further cost reduction.
TRANSACTION ADVISORY
The Group's Transactional business, which provides capital and leasing
advisory services to commercial and residential owners and occupiers,
performed well despite the challenging market conditions of Q2 and Q3 in
particular. Overall the Transactional business reported a 4% increase (6% in
constant currency) in revenue to £966.2m (2024: £929.6m). Underlying profit
increased by 13% to £47.1m (2024: £41.6m), highlighting the operating
leverage within the business and the benefits from restructuring in the prior
year.
Our Global Residential Transactional business was key to driving this improved
performance with revenue up 9% (10% in constant currency) to £293.6m (2024:
£269.7m), and underlying profit increasing 40% to £22.2m (2024: £15.9m),
with strengthened performance from both our EMEA and Asia Pacific regions.
The Commercial Transactional business increased revenue by 2% (4% in constant
currency) to £672.6m (2024: £659.9m), with underlying profit slightly
reduced to £24.9m (2024: £25.7m), primarily as a result of geographical mix
and the impact of investment in the business, particularly in Asia Pacific.
Commercial Transaction Advisory
Overall, global real estate investment increased by 15% in 2025, driven
largely by the United States, the world's largest market, which recorded a 20%
year-on-year increase and to which Savills has very little current exposure.
Elsewhere, investment trends were more mixed, with geopolitical developments
weighing on market momentum in certain regions during the second and third
quarters.
EMEA
Overall, commercial real estate investment volumes in EMEA were 12% higher in
2025. Within the core markets, performance varied by country, with the
strongest growth recorded in France and Sweden, and the UK, Spain, Netherlands
and Italy all delivering year on year growth. Whilst the German market also
recorded growth, market conditions remain challenging and investment levels
are significantly below historic averages.
Our EMEA Commercial Transactional business delivered an increase in revenue of
9% (same growth in constant currency) to £268.0m (2024: £245.6m), driven by
a strong performance from our market-leading UK business, which reported an
12% increase in revenues to £163.3m (2024: £146.3m).
The UK experienced trends in 2025 broadly consistent with other global
commercial real estate markets. Strong momentum entering the year was followed
by a pause in activity during the second quarter, which extended into the
third, as investors and occupiers assessed the implications of the imposition
of US tariffs, alongside other unforeseen geopolitical developments.
During this period, our UK business continued to work closely with clients,
building a robust transactional pipeline. As investor confidence and appetite
to transact began to improve, activity accelerated markedly in the fourth
quarter, resulting in the strongest final quarter for the UK market since
2001. Well positioned to capture this recovery, our UK business delivered a
very strong finish to the year.
At a sector level, the most notable shift in 2025 in the UK was the recovery
of the office market. Office investment volumes reached their highest level
since 2022, re-establishing the sector as the largest contributor to overall
transaction activity.
Key areas of growth for our UK business in 2025 included Industrial and
Logistics, reflecting strong demand for data centre infrastructure and general
manufacturing space, alongside Healthcare and Hotels. Our developing Real
Estate Investment Banking platform also performed well, completing a number of
significant financing transactions during the year.
In the occupational markets across EMEA, office take-up was slightly up year
on year, and logistics take-up was slightly down on the previous year. Both
sectors continued to experience upward pressure on prime rents throughout the
year.
In Continental Europe, our market-leading Spanish business delivered a very
strong performance, with commercial transactional revenues increasing by over
30% during the period and profitability improving. Our French and Portuguese
businesses also delivered strong top-line growth over the year.
In contrast, our German business continued to face more challenging market
conditions, and we implemented further restructuring initiatives in 2025. The
benefits of restructuring undertaken in prior years became increasingly
evident, contributing to reduced losses, and we expect this positive momentum
to continue into the current year.
Overall our EMEA Commercial Transactional business delivered an underlying
profit up 5% to £16.2m (2024: £15.5m).
Asia Pacific
Overall, commercial real estate investment volumes in Asia Pacific were up 7%
in 2025. Mainland China continued to weigh on the regional performance, with
investment volumes down 13% year-on-year and activity subdued across all
sectors. Against this backdrop, our own transaction volumes improved toward
the end of the year, with increased activity in late Q4. Hong Kong showed more
momentum, although office oversupply persists; investor interest in Japan
remained strong; the Australian market showed progressive improvement, albeit
our performance was temporarily masked by significant business investment
during the year; while momentum continued to build in South Korea.
For the Group, Asia Pacific Commercial Transactional revenue was down 12% (9%
in constant currency) year-on-year to £113.6m (2024: £129.8m). Revenues from
leasing activities were up in the year which was more than offset by a 20%
decline in revenues from capital transaction activities as a result of reduced
activity in Japan and mainland China. Our business in Hong Kong delivered over
40% revenue growth reflecting a lower interest rate environment and somewhat
improved investor sentiment.
We have invested in our Commercial Transactional business in Australia, making
several strategic team hires during the year. This well positions us to
establish a market-leading position and capture the opportunities in this
attractive and growing market.
Overall, the Asia Pacific Commercial Transaction business delivered an
underlying profit of £3.1m (2024: £6.7m).
North America
The US investment market continued to lead the global recovery and showed
strong growth in the year with volumes up by 20%. Whilst the Group's exposure
to capital markets activity there is currently limited, our small, New York
focused team had a record year completing some high-profile assignments.
Our core business in North America advises on occupier leasing, with a focus
on the office sector, alongside increasing activity in logistics and mandated
global occupier services.
Overall, Commercial Transaction revenue in North America increased by 2% (5%
in constant currency) to £291.0m (2024: £284.5m). While the number of office
leasing transactions increased during the year, lower average deal sizes
resulted in a 3% decline in office leasing revenues. Industrial leasing
delivered strong growth, supported by a small number of large transactions. In
addition, our Global Occupier Services business continued to grow, with
revenues increasing by 12% in North America.
Overall, the North American business increased underlying profit by 60% to
£5.6m (2024: £3.5m).
Residential Transaction Advisory
The Residential Transactional business saw strong revenue growth, up 9% (10%
in constant currency) to £293.6m (2024: £269.7m), with underlying profit
increasing by 40% to £22.2m (2024: £15.9m).
EMEA
The UK remains the Group's core residential market, accounting for 68% of
Residential Transactional revenues in the year (2024: 77%). UK Residential
Transactional revenue decreased by 4% to £199.7m (2024: £207.6m), while
underlying profit decreased by 9% to £18.1m (2024: £19.8m).
The UK's Prime residential markets were adversely affected by heightened
uncertainty, with speculation over the introduction of a wealth tax on
higher-value properties a contributing factor to a significant slowdown in
activity during the second and third quarters ahead of the delayed Autumn
Budget. Total market transactions with a value of £1m+ were broadly stable in
the year, with £5m+ transactions in London down 11%. We saw pricing
pressure, with Prime London pricing down 2.2% in the year and down by 3.9%
elsewhere in the country.
Following the Budget, and with greater certainty for buyers, transaction
activity picked up sharply at the end of the year and our residential business
saw a strong end to the year, with a high volume of completions. It is
expected that the introduction of the High Value Council Tax Surcharge in 2028
will have limited direct impact on prime residential markets, and so far we
have seen the post-Budget positive momentum carry through into 2026.
For our UK Residential business, second-hand market transactions were down 1%,
with a 7% reduction in London and 1% growth outside of the capital. The
average transaction value reduced by 7% to £1.4m, with an 8% reduction in
London and 4% decline in the regions. Revenue from the sale of new homes in
the UK reduced 7% in the year, reflecting a 15% decrease in the number of
exchanges.
Elsewhere in EMEA, the Group's Middle East residential business delivered a
very strong performance in 2025, with revenues increasing by over 80% to
£48.4m (2024: £26.7m). The Group made a number of key leadership hires at
the start of 2024 and has continued to invest in the platform since,
supporting rapid expansion and headcount growth from 15 to c. 250 brokers. The
performance in the year was underpinned by strong underlying market conditions
and continued gains in market share. In particular, the business saw strong
momentum in development sales, with the team successfully launching a number
of new residential developments.
Our residential business in Italy continued to benefit from prior investments
in people and infrastructure, delivering strong revenue growth in 2025, driven
primarily by our operations in Rome and Milan.
Another highlight was the strong performance of the Group's residential
business in Verbier, which was acquired at the start of 2024 and has quickly
contributed positively to overall results.
Asia Pacific
Revenues from the Group's Residential Transactional business in Asia Pacific
increased by 13% (17% in constant currency) to £19.5m (2024: £17.2m). This
growth reflects both the full-year contribution of the Group's Indian
business, which became a subsidiary of the Group in mid-2024, and revenue
increases across Australia and Vietnam.
In Australia, performance was supported by a combination of market growth and
market share gains, while in Vietnam, the establishment of a new residential
team contributed to increased revenues during the year.
Revenues remained broadly stable across mainland China and Hong Kong, however
we saw a significant improvement in underlying profitability in these
countries reflecting the benefits from our restructuring initiatives in 2024
coming through.
Overall, the region delivered a return to underlying profit in 2025 of £2.6m
from an underlying loss of £0.9m in the prior year.
PROPERTY AND FACILITIES MANAGEMENT
Our Property and Facilities Management businesses continued to perform well,
with revenues growing by 6% (8% in constant currency) to £943.3m (2024:
£888.1m), within the range of our expected overall growth rates for the
business. The Group's total area under management increased by 5% to 2.79bn sq
ft (2024: 2.67bn sq ft). Underlying profit increased by 6% to £52.2m (2024:
£49.2m).
EMEA
In EMEA we saw revenues increase by 10% to £480.0m (2024: £436.5m); same
growth in constant currency.
The UK, which accounts for around 76% of EMEA revenues, delivered strong
revenue growth across both property management and facilities management. The
square footage under management increased by approximately 7% to 673m sq ft
(2024: 630m sq ft), with the business maintaining its market-leading position
across all sectors. The UK business experienced some margin pressure due to
higher employee costs, specifically reflecting the increase in the employer's
national insurance rate effective from April last year, and lower income from
treasury operations.
In Germany, strong revenue growth came from new client wins, with the business
reporting a break-even performance, a significant turnaround from the losses
recorded in 2024. This improvement in profitability reflects the impact of new
leadership and the benefits of restructuring initiatives implemented in 2024.
Following further restructuring measures in H2 2025 within the Facilities
Management platform, we anticipate continued profitability improvement in the
current year.
In Spain, the business delivered strong growth in both revenues and profit,
reflecting contract wins and the full-year contribution from the acquisition
of Medasil Desarrollos S.L, a leading manager of residential, co-living, and
Build-to-Rent properties.
Our Middle East business saw good growth with contract wins in Egypt and KSA.
Overall, the region delivered a 13% increase in underlying profit in 2025 to
£29.7m (2024: £26.3m).
Asia Pacific
In Asia Pacific, revenue increased by 3% (6% in constant currency) to £463.3m
(2024: £451.6m). Underlying growth was somewhat masked by the mainland China
business exiting some secondary and tertiary markets in both 2024 (full year
effect) and 2025.
There was strong growth in revenue and profit in Singapore driven by both
contract wins and the acquisition of a 70% interest in Alpina, a leading
mechanical and electrical engineering consultancy, towards the end of the
year. This acquisition enables the Group to offer a fully integrated
Facilities Management ('IFM') service, better meeting the needs of clients.
The business also saw strong revenue growth in South Korea.
Market conditions remained relatively challenging in mainland China and Hong
Kong, with both businesses experiencing revenue declines. During H2 2025, the
Group undertook further restructuring and systems investment in the region,
which is expected to deliver operational benefits in 2026.
Overall, the region saw a modest decline in reported underlying profit in 2025
£22.5m (2024: £22.9m), with underlying profit slightly up on prior year on a
constant currency basis.
CONSULTANCY
Our Consultancy business which provides a range of services including
Valuations, Development, Planning, Building and Project Consultancy ('BPC')
and Sustainability, had a strong year. Revenue increased by 11% (12% in
constant currency) to £546.6m (2024: £492.3m), with underlying profit
increasing by 19% to £47.5m (2024: £39.9m).
EMEA
In EMEA, Consulting delivered a 7% (same in constant currency) growth in
revenue to £389.4m (2024: £364.1m).
In the UK, we saw good growth across all service lines during the year, with
revenue increasing by 7%. The Government's renewal of planning policy and
continued focus on safe and sustainable housing created opportunities across a
number of consultancy service lines. Growth within the Savills Earth business
was driven by work related to solar energy, while the Rural consultancy
business saw increased estate planning activity, reflecting changes to
inheritance tax treatment of agricultural property.
The Group's consultancy businesses in Spain delivered a strong performance,
with significant growth in both revenues and profit, reflecting positive
market conditions, continued strength in Valuations, and the expansion of the
Agriculture Consulting team. In the Middle East, BPC performed well and the
business experienced solid growth in Czech Republic and Italy. In Germany,
consultancy revenues declined during the year, with our Valuation practice
affected by lower levels of transactional activity in the market.
Underlying profit in the region increased by 8% to £42.7m (2024: £39.6m),
with margins improving to 11.0% (2024: 10.9%).
Asia Pacific
The Group's consultancy business in Asia Pacific saw revenues increase 18%
(24% in constant currency) to £115.8m (2024: £97.8m).
Project Management was a key revenue driver across the region during the year,
with the Merx business, which operates across Asia Pacific, delivering
particularly strong growth. Revenues from Valuations across the region were
broadly stable.
The Group also benefitted from a full year of consolidation of the Indian
business, in which a majority interest was acquired in H2 2024. India is now
the largest contributor to consultancy revenues in the region.
In mainland China, where both Development Consultancy and Valuations continued
to be negatively affected by a weak transactional market, the effect of the
prior period's restructuring initiatives showed through in a significant
reduction in losses for the period despite a revenue reduction of 25%
year-on-year. Meanwhile in Hong Kong, revenues were stable, with a significant
increase in profitability year-on-year.
Overall, underlying profit increased significantly to £4.5m (2024: £0.5m).
North America
Our North American consultancy business comprises complex project management
consultancy, location strategy and workplace solutions advice. Revenue
increased 36% (40% in constant currency) to £41.4m (2024: £30.4m).
Our Location Strategy Practice saw strong revenue growth driven by the
positive impact of some very significant mandates executed during the year. In
addition, the Group acquired Hoffman, a specialist move management and
relocation consultancy based in New York in H2 2025, which contributed to
revenue growth. Our complex project management consultancy experienced an 11%
decline in revenue in the year reflecting the timing of project completions
and a delayed commencement on a major assignment, which also impacted its
margin during the year.
Overall the North American Consultancy business delivered an underlying profit
of £0.3m, up from an underlying loss of £0.2m in the prior year.
INVESTMENT MANAGEMENT
The Investment Management business delivered a 1% increase in revenues to
£94.8m (2024: £94.0m), with underlying profit increasing by 38% to £13.9m
(2024: £10.1m).
Transaction fees increased, reflecting a modest rebound in transaction and
asset management activity despite continued challenging conditions for 'core'
investment products through most of the year. There were lower performance
fees during the year, and base management fees decreased marginally as a
result of cumulative reductions in asset values since early 2023. Totalling
£80.3m (2024: £81.1m), base management fees represented 85% of gross
revenues (2024: 86%).
Underlying profit increased by 38% to £13.9m (2024: £10.1m) following
favourable movements on co-investment holdings as markets began to recover,
together with the cumulative effect of cost savings from initiatives
implemented in 2024.
Under INREV reporting standards, Assets Under Management ('AUM'), including
undrawn commitments, increased to £22.9bn (2024: £21.7bn), driven by net
inflows, higher valuations and favourable FX movements.
The Investment Management business raised £2.3bn of capital in 2025 (2024:
£2.0bn), delivering a strong result in a market which only started to
experience an improvement in demand for 'core' investment product in the last
quarter of the year.
Key highlights included the launch of the business' first Asia Pacific mandate
with a global strategic client, a new joint venture with Electricite de France
('EDF') in the Group's key Living sector, and the launch of the DRC SIM
Tactical Debt Opportunities strategy. The business also continued to build
momentum in Southern Europe where capital raised on Italian mandates reached
approximately £1.5bn during the year.
As at Q3 2025, 70% of discretionary management products (by AUM) continued to
exceed their respective fund target or benchmark returns since inception.
GROUP STRATEGY
The Group operates in attractive markets and benefits from a highly regarded
brand, a strong client franchise and deep sector expertise. Our strategy for
2026 and the coming years builds on these strong foundations, while sharpening
our focus on those areas where we see the greatest potential for sustainable
growth, margin improvement and value creation, alongside a general emphasis on
improving operational efficiency and profitability across the Group.
Savills aims to meet the full breadth of client needs by delivering excellence
as a premium cross-sector, international real estate advisor, with the
capability to provide first-class advice on any type of capital or leasing
transaction or financing. This is complemented by our full range of market
leading property-level services including Consultancy and Property and
Facilities Management, which together with our Investment Management business
comprise our Less Transactional portfolio of service lines.
Accordingly, the Group's key strategic priorities are:
1. Build on the Group's Capital Transaction Advisory capability to
establish a scalable Real Estate Investment Banking ('REIB') operation
Savills has built a successful international Investment Agency, assisting
clients with the acquisition and disposal of land and property around the
globe. We have established strong market positions across the core real estate
classes in many markets, including Office, Multifamily, Retail, and Industrial
and Logistics.
Cognisant of the evolving needs of our clients, we more recently launched our
REIB business (Savills Capital Advisors, part of our Operational Capital
Markets business) as an organic strategy to create a comprehensive financing
and M&A capability, first within Savills EMEA. This has initially focused
on the broader residential sector - Multifamily, Build-to-Rent ('BTR'),
Purpose-Built Student Accommodation ('PBSA'), and related asset classes. In
2025, we began extending this capability into Asia Pacific, starting in
Singapore as a step towards globalising the business.
REIB is typically focused on larger single-asset, portfolio and M&A
transactions, where the combination of scale and complexity generally commands
higher fees and thus improved margins. The debt advisory element of REIB also
generates longer term repeatable income streams reflecting the ongoing
requirement for real estate financing and refinancing advice across the
typical ownership and loan life-cycle.
This strategy supports the Group's target to improve the underlying profit
before tax margin of its Transaction Advisory businesses to 10%+ (2025: 4.9%)
over the medium term.
2. Drive the continued growth and geographical coverage of our Less
Transactional businesses through organic growth and selective investment
Our Less Transactional businesses - Property & Facilities Management,
Consultancy, and Investment Management - remain at the core of the Group.
These service lines address the critical needs of our owner, investor, and
developer clients and provide essential property-level services that help
drive asset performance. We continue to target steady growth. in revenues and
profits from these business areas through organic growth supplemented by
selective investment in new geographies and complementary service lines.
The Group's best-in-class property-level services help to deepen client
relationships and, through the management and analysis of extensive data,
enable Savills to provide valuable insight and advice from individual assets
through to portfolios.
The Group is targeting revenue growth of c. 10% p.a. for its Less
Transactional businesses over the medium term, with a high single digit to low
double digit margin for Consultancy, and a mid single digit margin for
Property and Facilities Management.
3. Continue to broaden the business and improve profitability of Savills
International operations
Building on its core strength in EMEA, market-leading positions in selected
Asia Pacific locations, and its high quality occupier-focused business in
North America, the Group will continue to build on its service offering and
deepen its presence in markets where a proprietary presence is compelling; in
other evolving markets or those where the Group needs a local presence for
specific services only (for example portfolio valuation or local tenant
representation), then we will achieve coverage through minority interests or
joint ventures with local partners.
In the US, Savills' focus is on continuing to build the scale and
profitability of our existing occupier-focused business with a significant
element of large, complex advisory assignments. Having invested in a high
quality platform to support this model, which is capable of underpinning
significant growth, we are focused on revenue generation and sector
diversification. A key element of this is to broaden our historic sector focus
on office into industrial and logistics and retail, mainly through recruitment
and bolt-on acquisitions.
In Asia Pacific, the Group is focused on developing its core markets in
Australia, Japan and India over the short, medium and long term respectively
into meaningful contributors to group performance. In the Sino-markets, our
leading businesses in Hong Kong and mainland China, will continue to reinvest
their strong local cash generation into operating efficiencies, principally
through technology and automation where relevant.
Elsewhere in the Asia Pacific region, Savills will continue to build on its
established strengths in Singapore and South Korea, both as local markets and
conduits for globally active investment capital. In addition we will maintain
our strong positions in the longer term high potential economies of Vietnam
and Malaysia.
In Southern Europe, Savills will continue to build on its leading broad based
business in the Iberian peninsula and improved market position in Italy. In
Northern Europe, having carried out significant restructuring in recent times,
particularly in the two largest European markets of Germany and France, the
group has two aims as those markets recover; the first is to continue to build
scale in property management such that over time the European business as a
whole develops a similar sustainably profitable base as that which supports
Asia Pacific and the UK. This will be supplemented by a growing suite of
consultancy services such as project management, building consultancy and
finally, we will make selective recruitment into the transactional businesses
(both leasing and capital transactions) across the principal real estate
subsectors.
In the Middle East, we will continue to improve the breadth of our services
lines in both transactional activity and consultancy, alongside investment in
our technology platform to enable scale and improved profitability for this
well positioned regional business.
4. Expansion of Global Prime Residential Advisory
Savills is differentiated among leading global real estate services advisors
by its long-established strength in prime residential agency and development
consultancy, complemented by deep commercial real estate capability. This
combination supports a strong track record in advising on major mixed-use
schemes across multiple markets, which the Group will continue to leverage and
develop.
In recent years, the Group has expanded its international prime residential
agency platform through targeted acquisitions and organic growth in Spain,
Italy, the South of France, Switzerland and the Middle East, and this global
prime market growth strategy will continue.
Further enhancement of the Savills Private Office will deepen relationships
with the private wealth and family office sector, enabling the Group to
originate and deliver a broader range of appropriate real estate investment
opportunities, in addition to super-prime residential, for this increasingly
important client segment globally.
5. Growth of Savills Investment Management ('Savills IM') as an
Investment and Outsourced Asset Manager
Savills IM comprises a strong EMEA and growing Asia Pacific platform offering
discretionary investment management, JV partnerships, and outsourced asset
management services across both real estate debt and equity. The platform is
predominantly focused on a core investment strategy, targeting sustainable,
long-term returns derived from the active management of high-quality,
income-producing real estate assets.
The strategy is to continue scaling the platform to support the delivery of
high-conviction discretionary funds and mandate-based products. Whilst Savills
IM has strong capability across all sectors including retail and office, it
has a strong focus on clearly defined sectors of expertise, including Living,
Logistics, and development and construction finance. In parallel, and building
on Savills IM's established strengths as an asset manager and local operating
partner in Southern Europe, the business will deliver a high-quality asset
management service for non-discretionary private equity investments. In
addition, Savills IM will selectively explore market opportunities in North
America where these capabilities can be deployed effectively. The overarching
plan is to deliver a growing earnings stream with pre-tax profit margins in
excess of 20% as a result of the consistent delivery of high quality long term
investment performance.
In line with these strategies, Savills will continue to maintain proprietary
positions in most major markets. In addition, in markets that are non-core in
the near term but demonstrate potential for long-term growth, the Group will
take minority holdings through franchise or associate arrangements. This
approach provides strategic flexibility, enabling Savills to maintain a
'capital-light' yet meaningful presence in emerging markets, while preserving
the ability to use its global reach in support of client interests.
The Group is targeting an improvement in the margin of its Investment
Management business to 20%+ (2025: 14.7%) over the medium term.
Capital allocation
As the Group seeks to deliver returns ahead of its cost of capital, including
healthy cash returns to shareholders through its long-standing distribution
policy, Savills philosophy is to maintain a consistently strong balance sheet.
This provides protection during periods of significant market downturn, whilst
retaining the financial flexibility to take advantage of compelling
acquisitions in line with its strategy.
The Group typically operates with low financial leverage; the debt we do take
on is generally underpinned by our resilient less transactional earnings.
Under most circumstances we would target net debt/EBITDA at our financial year
end of c.1x or less.
On occasions, we will accept more material net indebtedness, such as to
finance a highly compelling and cash-generative acquisition, where both the
indebtedness will be repaid over a relatively short period of time through
operating cashflow, and the Group's distribution policy is maintained.
The Group is focused on delivering organic growth through leveraging our
capital light model and ongoing investment in our platform, people and
innovation. In addition, our targeted approach to M&A is underpinned by
ensuring strong strategic, cultural and service line fit, whilst securing
financially compelling returns.
Dividend Policy
In response to the Global Financial Crisis, the Group recognised that its
conventional ordinary dividend policy was structurally unable to withstand a
severe impairment in transactional real estate markets without being cut and
therefore impairing the ability of some income funds from investing. To
address this, the Group developed a 'bifurcated' dividend policy, designed to
protect the progressive ordinary dividend from reduction under most
foreseeable market conditions, while maintaining the ability to distribute
transaction-related profits efficiently.
The bifurcated dividend policy will continue and is based on the following
principles:
· Progressive Basic Ordinary Dividend - Paid broadly 1/3 interim
and 2/3 final, supported by the Group's maintainable 'Less Transactional'
earnings. Since inception in 2010, the Basic Ordinary Dividend has grown at
2.2 times CPI inflation.
· Supplemental Interim Dividend - Declared and paid alongside the
final ordinary dividend each year, supported by the performance of the
Transaction Advisory business. This allows the periodic volatility of
transactional earnings to be more readily reflected in the associated
shareholder distribution.
· Maximum Overall Distribution - Capped at the higher of 1.5x cover
on statutory EPS or 2.0x cover on underlying EPS.
FINANCIAL REVIEW
Profit margin
The Group's underlying profit margin increased by 30bps to 5.7% (2024: 5.4%),
see Note 3 for further explanation of underlying profit measures. From a
trading perspective, this principally reflected improved performance
year-on-year, despite limited market volume improvement, in our higher margin
transactional businesses, primarily from our growing residential transactional
business. In addition, our non-transactional business lines delivered strong
performances, with an improved margin in the investment management business.
Reported pre-tax profit margin increased to 4.0% (2024: 3.7%).
Taxation
The tax charge for the year decreased to £27.4m (2024: £35.4m), representing
an effective tax rate on reported profit before tax of 27.1% (2024: 40.1%).
The Group's effective reported tax rate is higher than the UK tax of 25% as a
result of the geographic distribution of profits and disallowable expenses
largely arising from transaction-related costs. The underlying effective tax
rate decreased to 25.1% (2024: 31.5%).
Transaction-related costs
During the year, the Group recognised a transaction-related charge of £3.6m
(2024: £15.9m). These costs primarily represent liabilities for future
consideration payments which are contingent on the continuity of recipients'
employment at the time of payment (2025: £1.7m, 2024: £13.2m). The reduction
related to the reduced volume of deferred consideration obligations since the
final payment in respect of the acquisition of DRC Capital in the prior year.
Transaction-related charges have been excluded from the calculation of
underlying profit on a consistent basis in line with the Group's policy.
Restructuring costs
Reflecting continued market challenges through Q2 and Q3, the Group continued
to review its cost base during the year and implemented further restructuring
initiatives across the business, particularly within the German business and
in mainland China. This resulted in exceptional restructuring costs of £30.5m
(2024: £17.2m) in aggregate.
These charges have been excluded from calculation of underlying profit on a
consistent basis in line with the Group's policy.
Earnings per share
Basic earnings per share increased 32% to 52.0p (2024: 39.4p), reflecting a
39% increase in reported profit after tax. Adjusted on a consistent basis for
significant restructuring, transaction-related costs, profits and losses on
disposals, certain share-based payment adjustments, amortisation of intangible
assets arising from business combinations, exceptional impairments and
transaction-related fair value gains and losses, underlying basic earnings per
share increased 17% to 77.2p (2024: 66.2p).
Fully diluted earnings per share increased by 33% to 49.3p (2024: 37.2p). The
underlying fully diluted earnings per share increased 17% to 73.3p (2024:
62.5p).
Dividends
An interim dividend of 7.4p per share (2024: 7.1p), amounting to £10.1m was
paid on 29 September 2025, and a final ordinary dividend of 15.7p per share
(2024: 14.5p) is recommended, making the ordinary dividend 23.1p per share for
the year (2024: 21.6p). A 24% increase in the supplemental interim dividend to
10.7p per share (2024: 8.6p) is declared, reflecting the improved underlying
performance of our global Transaction Advisory business. Taken together, the
ordinary and supplemental interim dividends comprise an aggregate distribution
for the year of 33.8p per share, representing an increase of 12% on the 2024
aggregate ordinary and supplemental dividend of 30.2p.
Cash resources, borrowings and liquidity
Cash and cash equivalents, net of overdrafts in notional pooling arrangements,
at year-end increased 2% to £344.4m (2024: £337.2m).
Gross borrowings at year-end increased to £176.7m (2024: £160.9m). These
principally comprise £120.0m (2024: £150.0m) of 10 and 12 year fixed rate
notes (blended coupon of 3.2%) which were issued in June 2018, following
repayment of the £30.0m 7 year fixed rate notes in June 2025. £30.0m of the
Group's £360.0m UK revolving credit facility ('RCF') was drawn at the end of
the year (2024: undrawn), with the RCF representing the major part of a total
of £414.6m (2024: £421.3m) of undrawn borrowing facilities available to the
Group. The RCF matures in February 2030 and has a current margin of 90bps. At
the year-end, cash and cash equivalents net of borrowings was £167.7m (2024:
£176.3m).
Cash is typically retained in a number of the Group's subsidiaries in order to
meet the requirements of commercial contracts or capital adequacy. In
addition, cash in certain territories is retained to meet future growth
requirements.
The Group's net inflow of cash is typically greater in the second half of the
year. This is as a result of seasonality in trading and the major cash
outflows associated with dividends, profit-related remuneration payments and
related payroll taxes in the first half. The Group cash inflow for the year
from operating activities was £172.3m (2024: £158.6m). As previously
mentioned, this increase was due to higher profits year-on-year.
With a meaningful proportion of the Group's revenue typically being
transactional in nature, the Board's strategy is to maintain low levels of
gearing, but retain sufficient credit facilities to enable it to meet cash
requirements during the year and finance the majority of business development
opportunities as they arise.
Capital and Shareholders' interests
During the year, 1,467,700 (2024: 16,140) new ordinary shares were issued on
the exercise of options by participants of the Group's Save As You Earn
('SAYE') schemes and 18,959 (2024: 154,220) of new ordinary shares were issued
to participants of the Group's Performance Share Plan ('PSP') schemes. It is
the Group's policy to issue new ordinary shares for such schemes only where it
is legally required to do so; for other equity-related incentive schemes the
Group acquires existing shares in the market. The total number of ordinary
shares in issue (before the impact of shares held by the Trusts) at 31
December 2025 was 146,046,938 (2024: 144,560,279).
Savills Pension Scheme
The funding level of the defined benefit Savills Pension Scheme in the UK,
which is closed to future service-based accrual, remained stable during the
year, with gains from lower RPI inflation broadly offset by losses from
updated mortality assumptions and other experience impacts. The plan was in a
surplus position of £10.2m at the year-end (2024: £9.9m surplus).
Net assets
Net assets as at 31 December 2025 were £804.4m (2024: £777.8m). This
movement reflects primarily the Group's profit for the year and the issue of
shares following the vesting of the SAYE scheme during the period, offset by
primarily purchases of treasury shares, foreign exchange movements and
dividend payments.
Foreign currency
The Group operates internationally and is exposed to foreign exchange risks.
As both revenue and costs in each location are generally denominated in the
same currency, transaction-related risks are relatively low and generally
associated with intra Group activities. Consequently, the overriding foreign
currency risk relates to the translation of overseas profits and losses into
sterling on consolidation. The Group does not actively seek to hedge risks
arising from foreign currency translations due to their non-cash nature.
The net impact of foreign exchange rate movements during the year represented
a £34.6m decrease in revenue and a £0.9m decrease in underlying profit.
Principal risks and uncertainties
The Directors have carried out a robust assessment of the principal risks
facing the Group - including those that would threaten its business model,
future performance, solvency, liquidity and/or pose a material reputational
risk. Further detail on these principal risks are set out in the Group's
Annual Report and Accounts, which will be available on publication
at https://ir.savills.com/ (https://ir.savills.com/) on 7 April 2026. The
identified principal risks are summarised below:
· Adverse market conditions, macro-economic and geopolitical issues
· Achieving the right market positioning to meet the needs of our
clients
· Recruitment and retention of high-calibre employees
· Reputational and brand risk
· Legal risk
· Failure or significant interruption to IT systems causing disruption
to client service
· Operational resilience/business continuity
· Business conduct
· Changes in the regulatory environment/regulatory breaches
· Acquisition/integration risk
· Environment and sustainability
· Strategic adoption of new technologies
Consolidated income statement
for the year ended 31 December 2025
2025 2024 restated*
Note £m £m
Revenue 2 2,550.9 2,404.0
Less:
Employee benefits expense* (1,803.0) (1,693.2)
Depreciation (69.1) (70.2)
Amortisation of intangible assets (15.8) (16.1)
Impairments 3 (4.6) (1.9)
Other operating expenses* (575.4) (549.5)
Increase in provision for expected credit loss (2.2) (8.3)
Other net gains 4.5 1.5
Share of post-tax profit from joint ventures and associates 8.2 7.5
Operating profit 93.5 73.8
Finance income 49.4 57.5
Finance costs (41.9) (43.0)
Net finance income 7.5 14.5
Profit before income tax 101.0 88.3
Income tax expense 5 (27.4) (35.4)
Profit for the year 73.6 52.9
Attributable to:
Owners of the parent 70.9 53.6
Non-controlling interests 2.7 (0.7)
73.6 52.9
Earnings per share
Basic earnings per share 7(a) 52.0p 39.4p
Diluted earnings per share 7(a) 49.3p 37.2p
Supplementary income statement information
Reconciliation to underlying profit before income tax
Profit before income tax 101.0 88.3
- Restructuring and transaction-related costs 34.1 33.1
- Other underlying adjustments 10.2 9.0
Underlying profit before income tax 2 and 3 145.3 130.4
*See note 4 for details of the prior year restatement
Savills plc
Consolidated statement of comprehensive income
for the year ended 31 December 2025
2025 2024
£m £m
Profit for the year 73.6 52.9
Other comprehensive income/(loss)
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit pension scheme and employee benefit 2.6 10.5
obligations
Changes in fair value of financial assets at FVOCI 0.1 (0.7)
Tax on other items that will not be reclassified (0.9) (2.9)
Total items that will not be reclassified to profit or loss 1.8 6.9
Items that may be reclassified subsequently to profit or loss:
Currency translation differences (18.3) (5.7)
Tax on items that may be reclassified (0.3) -
Total items that may be reclassified subsequently to profit or loss (18.6) (5.7)
Other comprehensive (loss)/income for the year (16.8) 1.2
Total comprehensive income for the year 56.8 54.1
Total comprehensive income/(loss) attributable to:
Owners of the parent 54.1 55.9
Non-controlling interests 2.7 (1.8)
56.8 54.1
Savills plc
Consolidated statement of financial position
at 31 December 2025
2025 2024
Note £m £m
Assets: Non-current assets
Property, plant and equipment 70.5 62.3
Investment property 14.4 -
Right-of-use assets 205.2 183.0
Goodwill 463.8 459.0
Intangible assets 42.3 51.8
Investments in joint ventures and associates 40.7 38.4
Deferred income tax assets 72.9 64.8
Financial assets at fair value through other comprehensive income ('FVOCI') 4.9 4.6
Financial assets at fair value through profit and loss ('FVPL') 27.8 27.3
Defined benefit pension surplus 15.9 13.5
Contract related assets 0.8 1.3
Trade and other receivables 73.7 72.6
1,032.9 978.6
Assets: Current assets
Inventories 1.0 -
Contract assets 10.5 13.0
Trade and other receivables 769.9 718.9
Income tax receivable 4.5 4.0
Derivative financial instruments 0.8 0.3
Cash and cash equivalents* 531.6 536.5
1,318.3 1,272.7
Liabilities: Current liabilities
Borrowings 11 48.0 41.3
Overdrafts in notional pooling arrangement* 187.2 199.3
Lease liabilities 51.0 49.7
Derivative financial instruments 2.1 1.3
Contract liabilities 14.4 16.7
Trade and other payables 759.6 729.7
Income tax liabilities 17.3 15.4
Employee benefit obligations 18.7 19.4
Provisions 29.8 19.2
1,128.1 1,092.0
Net current assets 190.2 180.7
Total assets less current liabilities 1,223.1 1,159.3
Liabilities: Non-current liabilities
Borrowings 11 128.7 119.6
Lease liabilities 204.4 183.4
Derivative financial instruments 24.4 12.6
Other payables 16.0 14.8
Employee benefit obligations 26.9 25.1
Provisions 15.4 23.4
Deferred income tax liabilities 2.9 2.6
418.7 381.5
Net assets 804.4 777.8
Equity:
Share capital 3.7 3.6
Share premium 116.1 105.0
Other reserves 71.4 89.3
Retained earnings 575.2 548.9
Equity attributable to owners of the parent 766.4 746.8
Non-controlling interests 38.0 31.0
Total equity 804.4 777.8
(*) Included within cash and cash equivalents are cash balances of £189.2m
(31 December 2024: £200.2m) that are operated within a notional cash pooling
arrangement together with overdraft balances of £187.2m (31 December 2024:
£199.3m) presented above in current liabilities. See Note 8 for further
details.
Savills plc
Consolidated statement of changes in equity
for the year ended 31 December 2025
Attributable to owners of the parent
Share capital Share premium Other reserves Retained earnings Total Non-controlling interests Total equity
£m £m £m £m £m £m £m
Balance at 1 January 2025 3.6 105.0 89.3 548.9 746.8 31.0 777.8
Profit for the year - - - 70.9 70.9 2.7 73.6
Other comprehensive income/(loss):
Remeasurement of defined benefit pension scheme and employee benefit - - - 2.6 2.6 - 2.6
obligations
Changes in fair value of financial assets at FVOCI - - 0.1 - 0.1 - 0.1
Tax on items taken to other comprehensive income/(loss) - - - (1.2) (1.2) - (1.2)
Currency translation differences - - (18.3) - (18.3) - (18.3)
Total comprehensive (loss)/income for the year - - (18.2) 72.3 54.1 2.7 56.8
Employee share option scheme:
- Value of services provided - - - 28.4 28.4 - 28.4
- Tax on employee share option schemes - - - 0.2 0.2 - 0.2
Issue of share capital 0.1 11.1 - - 11.2 - 11.2
Purchase of treasury shares - - - (17.4) (17.4) - (17.4)
Dividends - - - (41.2) (41.2) (2.0) (43.2)
Reclassification 0.3 (0.3) - - -
Transfer between reserves - - - (0.1) (0.1) 0.1 -
Transactions with non-controlling interests - - - (1.8) (1.8) 1.6 (0.2)
Fair value of derivative financial instruments - - - (13.8) (13.8) - (13.8)
Acquisitions of subsidiaries - - - - - 4.6 4.6
Balance at 31 December 2025 3.7 116.1 71.4 575.2 766.4 38.0 804.4
Attributable to owners of the parent
Share capital Share premium Other reserves Retained earnings Total Non-controlling interests Total equity
£m £m £m £m £m £m £m
Balance at 1 January 2024 3.6 104.9 94.5 514.9 717.9 34.9 752.8
Profit for the year - - - 53.6 53.6 (0.7) 52.9
Other comprehensive income/(loss):
Remeasurement of defined benefit pension scheme and employee benefit - - - 10.5 10.5 - 10.5
obligations
Changes in fair value of financial assets at FVOCI - - (0.7) - (0.7) - (0.7)
Tax on items taken to other comprehensive income/(loss) - - - (2.9) (2.9) - (2.9)
Currency translation differences - - (4.6) - (4.6) (1.1) (5.7)
Total comprehensive (loss)/income for the year - - (5.3) 61.2 55.9 (1.8) 54.1
Employee share option scheme:
- Value of services provided - - - 31.4 31.4 - 31.4
- Tax on employee share option schemes - - - 0.8 0.8 - 0.8
Issue of share capital - 0.1 - - 0.1 - 0.1
Purchase of treasury shares - - - (22.9) (22.9) - (22.9)
Dividends - - - (31.2) (31.2) (2.6) (33.8)
Transfer between reserves - - 0.1 (1.3) (1.2) 1.2 -
Transactions with non-controlling interests - - - 4.4 4.4 6.1 10.5
Fair value of derivative financial instruments - - - (8.4) (8.4) - (8.4)
Acquisitions of subsidiaries - - - - - (6.8) (6.8)
Balance at 31 December 2024 3.6 105.0 89.3 548.9 746.8 31.0 777.8
Savills plc
Consolidated statement of cash flows
for the year ended 31 December 2025
2025 2024
Note £m £m
Cash flows from operating activities
Cash generated from operations 8 202.7 177.3
Interest received 47.1 57.2
Interest paid (40.6) (42.0)
Income tax paid (36.9) (33.9)
Net cash generated from operating activities 172.3 158.6
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 0.2 0.2
Proceeds from sale of financial assets held at FVOCI and FVPL 1.4 1.0
Proceeds from sale of interests in joint ventures 0.2 0.1
Dividends received from joint ventures 6.0 4.2
Dividends received from associates 3.5 2.8
Dividends received from other parties 0.7 0.5
Repayment of loans by joint ventures 0.4 -
Loans to associates (1.2) (0.4)
Loans to other parties (0.1) (0.5)
Acquisition of subsidiaries, net of cash and overdrafts acquired (22.4) (2.6)
Disposal of subsidiaries, net of cash and overdrafts disposed 2.4 -
Deferred consideration paid in relation prior year acquisitions (0.7) (0.9)
Sublease receipts 2.0 2.1
Purchase of property, plant and equipment (27.8) (11.7)
Purchase of intangible assets (5.3) (9.1)
Purchase of investment in joint ventures (0.2) (0.3)
Purchase of investment in associates (1.1) -
Purchase of financial assets held at FVOCI and FVPL (1.9) (6.1)
Net cash used in investing activities (43.9) (20.7)
Cash flows from financing activities
Proceeds from issue of shares 11.2 0.1
Proceeds from transaction with non-controlling interest - 11.3
Payments to non-controlling interest holders (0.2) (5.4)
Proceeds from borrowings 137.8 85.2
Repayments of borrowings (135.1) (87.4)
Payment of financing fees (2.0) -
Principal elements of lease payments (56.0) (59.6)
Purchase of treasury shares (17.4) (22.9)
Dividends paid (43.2) (33.8)
Net cash used in financing activities (104.9) (112.5)
Net increase in cash, cash equivalents and bank overdrafts 23.5 25.4
Cash, cash equivalents and bank overdrafts at beginning of year 327.4 310.1
Effect of exchange rate fluctuations on cash and cash equivalents held (9.9) (8.1)
Cash, cash equivalents and bank overdrafts at end of year 341.0 327.4
NOTES
1. Basis of preparation
The results for the year ended 31 December 2025 have been extracted from the
audited financial statements. The financial statements have been prepared in
accordance with UK adopted international accounting standards.
The financial statements are prepared on a going concern basis and under the
historical cost convention as modified by the revaluation of loans receivable,
equity investments and derivative financial instruments held at fair value.
The financial information in this statement does not constitute statutory
accounts within the meaning of s434 of the Companies Act 2006. The statutory
accounts for the year ended 31 December 2025, on which the auditors have given
an unqualified audit report, have not yet been filed with the Registrar of
Companies.
The preparation of financial statements in conformity with IFRS requires the
use of estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Although these
estimates are based on management's best knowledge of the amount, event or
actions, actual results ultimately may differ from those estimates.
Going concern
The Group has prepared its going concern assessment for the period to the end
of June 2027. As in prior years, the Board undertook a strategic business
review in the current year, taking account of the Group's current position and
prospects, the Group's strategic plan, and the Group's principal risks and the
management of those risks, as detailed in the Annual Report and the Board's
risk appetite as detailed in the Strategic Report. Sensitivity analysis was
also undertaken, including financing projections, to flex the financial
forecasts under several severe downside scenarios, which involved applying
different assumptions to the underlying forecasted revenues, costs and
underlying profits both individually and in aggregate. These scenarios assess
the potential impact from several macro-economic risks, including a severe
global economic downturn. The results of this sensitivity analysis showed that
the Group would retain liquidity and maintain significant available facility
and covenant headroom to be able to withstand the impact of such scenarios
over the period of the financial forecast, as a result of the resilience and
diversity of the Group, underpinned by a strong balance sheet.
Based on the Group's positive net cash position of £167.7m (cash and cash
equivalents less overdrafts in notional pooling arrangements and borrowings)
and undrawn borrowing facilities of £414.6m available to the Group at the
year-end, as described in the Financial Review, combined with the assessment
explained above, the Directors have formed the judgement at the time of
approving the financial statements, that there is a reasonable expectation
that the Group has adequate resources to continue as a going concern for a
period of at least 12 months from the date of the approval of the financial
statements until at least June 2027. For this reason, they continue to adopt
the going concern basis of accounting in preparing the consolidated financial
statements.
2. Segment analysis
EMEA Asia Pacific North America Total
2025 £m £m £m £m
Revenue
Residential Transactional 274.1 19.5 - 293.6
Commercial Transactional 268.0 113.6 291.0 672.6
Consultancy 389.4 115.8 41.4 546.6
Property Management 480.0 463.3 - 943.3
Investment Management 90.3 4.5 - 94.8
Revenue 1,501.8 716.7 332.4 2,550.9
Underlying profit/(loss) before tax
Residential Transactional 19.6 2.6 - 22.2
Commercial Transactional 16.2 3.1 5.6 24.9
Consultancy 42.7 4.5 0.3 47.5
Property Management 29.7 22.5 - 52.2
Investment Management 13.0 0.9 - 13.9
Unallocated (15.4) - - (15.4)
Underlying profit/(loss) before tax 105.8 33.6 5.9 145.3
EMEA* Asia Pacific North America Total
2024 £m £m £m £m
Revenue
Residential Transactional 252.5 17.2 - 269.7
Commercial Transactional 245.6 129.8 284.5 659.9
Consultancy 364.1 97.8 30.4 492.3
Property Management 436.5 451.6 - 888.1
Investment Management 87.8 6.2 - 94.0
Revenue 1,386.5 702.6 314.9 2,404.0
Underlying profit/(loss) before tax
Residential Transactional 16.8 (0.9) - 15.9
Commercial Transactional 15.5 6.7 3.5 25.7
Consultancy 39.6 0.5 (0.2) 39.9
Property Management 26.3 22.9 - 49.2
Investment Management 9.7 0.4 - 10.1
Unallocated (10.4) - - (10.4)
Underlying profit/(loss) before tax 97.5 29.6 3.3 130.4
* In line with the creation of an EMEA Board to oversee the business in the
region, the previously disclosed segments of UK and Continental Europe and the
Middle East ('CEME') now form the EMEA segment. Prior comparatives have been
restated to reflect this change.
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision-maker. The chief operating
decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Group
Executive Board ('GEB').
The GEB primarily manages the business based on the geographic location in
which the Group operates, with the Investment Management business being
managed separately. As the Group is strongly affected by both differences in
the types of services it provides and the geographical areas in which it
operates, the matrix approach of disclosing both the business and geographical
segments format is used.
The operating segments are identified as the following regions: EMEA, Asia
Pacific and North America. The Savills Investment Management business is also
considered a separate operating segment. The reportable operating segments
derive their revenue primarily from property-related services.
The GEB assesses the performance of operating segments based on a measure of
underlying profit before tax which adjusts reported pre-tax profit by
profit/(loss) on disposals, share-based payment adjustment, significant
restructuring costs, significant transaction-related costs, amortisation and
impairment of intangible assets arising from business combinations, impairment
of goodwill and other items that are considered non-operational and material
(such as fair value gains/losses on transaction-related options).
A reconciliation of underlying profit before tax to reported profit before tax
is provided in Note 3.
3. Underlying profit before tax
The Group believes that the consistent presentation of underlying profit
before tax, underlying effective tax rate, underlying basic earnings per share
and underlying diluted earnings per share provides additional useful
information to Shareholders on the underlying trends and comparable
performance of the Group over time by excluding significant non-operational
costs/income from the GAAP measures. The 'underlying' measures are also used
by the Group for internal performance analysis and incentive compensation
arrangements for employees.
These terms are not defined terms under IFRS and may therefore not be
comparable with similarly-titled profit measures reported by other companies.
They are not intended to be a substitute for, or superior to, GAAP measures.
The non-GAAP measures may be materially higher or lower than GAAP measures and
should not be regarded as a complete picture of the Group's financial
performance. In particular, underlying profit before tax may be materially
higher or lower than reported profit before tax as a result of the
adjustments.
2025 2024
£m £m
Reported profit before tax 101.0 88.3
Adjustments:
Amortisation of intangible assets arising from business combinations 8.8 9.2
Impairments 4.6 1.9
Share-based payment adjustment 0.6 (1.1)
Profit on disposal of subsidiaries (4.5) -
Restructuring costs 30.5 17.2
Transaction-related costs 3.6 15.9
Fair value gain on step acquisition of subsidiaries previously classified as - (4.4)
associates
Fair value loss on transaction-related options 0.7 3.4
Underlying profit before tax 145.3 130.4
The adjustment for share-based payments relates to the impact of the
accounting standard for share-based compensation. The annual bonus is paid in
a mixture of cash and deferred shares and the proportions can vary from one
year to another. Under IFRS, the deferred share element is amortised to the
income statement over the vesting period whilst the cash element is expensed
in the year. The adjustment above addresses this by adding to or deducting
from profit the difference between the IFRS 2 charge in relation to
outstanding bonus-related share awards and the estimated value of the current
year bonus pool to be awarded in deferred shares. This adjustment is made to
align the underlying staff cost in the year with the revenue recognised in the
same period, providing additional information on the Group's performance over
time with respect to profitability.
Exceptional impairments in the current year includes the impairment of
goodwill and intangible assets (£3.0m) recognised on the Savills Investment
Management UK Build-to-Rent ('BTR') cash generating unit ('CGU'), following
the departure of the majority of the team in the period, in addition to an
impairment of a shareholder loan regarding a joint venture investment in the
Savills Investment Management business (£1.6m). In the prior year,
exceptional impairments related to the impairment of goodwill of the
Indonesian CGU.
Profit on disposal of subsidiaries recognised in the current year relates to
the disposal of 51% of Cureoscity Technologies Limited in February 2025, which
is now an associate of the Group, and the disposal of the Group's 100% holding
in Loudden Bygg-och Fastighetsservice AB in September 2025.
In the face of continued economic uncertainty and geopolitical risk, the prior
year restructuring process was held open through 2025. This resulted in the
Group recognising further restructuring costs of £30.5m in the year (2024:
£17.2m).
Transaction-related costs include a £4.6m charge for future consideration
payments which are contingent on the continuity of recipients' employment in
the future (2024: £13.2m). The current period also includes a £3.0m credit
relating to the reversal of an earn-out position with regard to the Savills
Investment Management BTR acquisition (Pitmore Limited) made in July 2022. In
the prior year, a significant portion of the charge related to the acquisition
of DRC Capital LLP ('DRC') in 2021. Transaction-related costs also include
£1.5m of professional advisory transaction fees (2024: £0.2m) and £0.5m of
interest on deferred consideration and non-current future payments in relation
to business acquisitions that are linked to employment (2024: £0.5m). In
addition, transaction-related costs included a £0.1m (2024: £0.1m) charge
relating to prepaid amounts issued as part of business acquisitions that are
linked to continued active engagement in the business. Of these items, prepaid
amounts that are linked to active engagement in the business are recorded as
employee benefits expenses in the income statement, unwinding of interest is
recorded as a finance cost in the income statement and all other
charges/(credits) are recorded within other operating expenses. In the current
year, transaction-related costs also include a £0.1m fair value credit in
relation to the re-measurement of contingent deferred consideration (2024:
£0.8m fair value charge). The prior year also included a £1.1m charge in
relation to a payment to the non-controlling interest holder in Savills Real
Estate LLC to buy-out their remaining interest in the business.
In the previous year, a fair value gain on step acquisition of subsidiaries
previously classified as associates of £4.4m largely related to the
re-measurement of the Group's holding in its associate, Riviera Estates SAS,
prior to the acquisition of a further 24% equity interest in the business,
bringing the Group's total shareholding to 75%.
The fair value loss on transaction-related call options in the current year
primarily relates to a £1.5m loss on the initial recognition of the option to
purchase a further 65% in the KMC Property Consultants Pte Ltd ('KMC'), which
is currently an associate, and a £1.0m gain on the remeasurement of the
option which gives the Group the right to purchase the remaining 20%
shareholding in Absolute Maintenance Services Pte Ltd and Solute Pte Ltd
('AMS') in 2027. There is also a fair value loss of £0.6m in the current year
relating to the re-measurement of the option which gives the Group the right
to purchase the remaining 40% in LCA Core Sdn Bhd Group ('LCA') in 2027 and a
£0.4m gain on the re-measurement of the option for the remaining 45%
shareholding in Savills Property Servies (India) Private Limited ('Savills
India), exercisable in five tranches between 2029 and 2034. The fair value
loss on transaction-related call options in the previous year of £3.4m
related primarily to a loss on the re-measurement of the AMS option.
4. Prior year restatement
Presentation of employee benefits expenses associated with property management
contracts within the Income Statement
As part of a systems improvement project within the Group, management
identified that employment costs of employees associated with the delivery of
certain lump sum property management contracts had been incorrectly classified
as contract costs within other operating expenses in the Income Statement. In
the current year, these costs have been correctly classified as part of
employee benefits expense in the income statement. The prior year comparatives
have been restated in accordance with IAS 8.
The table below shows the impact of the prior year restatement on the Group's
primary financial statements:
2024 reported Restatement 2024 restated
£m £m £m
Income Statement
Employee benefits expense 1,581.4 111.8 1,693.2
Other operating expenses 661.3 (111.8) 549.5
This prior year restatement does not have any impact on reported comparative
profit after tax, earnings per share, the Statement of Financial Position or
the Statement of Cash Flows.
5. Income tax expense
The income tax expense has been calculated on the basis of the underlying rate
in each jurisdiction adjusted for any disallowable charges.
2025 2024
£m £m
Current tax
UK tax 22.1 22.6
Adjustment in respect of prior years - UK (1.8) 2.3
20.3 24.9
Overseas tax 19.0 21.6
Adjustment in respect of prior years - overseas (1.2) (1.1)
17.8 20.5
Total current tax 38.1 45.4
Deferred tax
UK tax (2.7) (4.0)
Adjustment in respect of prior years - UK 1.0 2.0
(1.7) (2.0)
Overseas tax (8.8) (10.4)
Adjustment in respect of prior years - overseas (0.2) 2.4
(9.0) (8.0)
Total deferred tax (10.7) (10.0)
Income tax expense 27.4 35.4
6. Dividends
2025 2024
£m £m
Amounts recognised as distribution to equity holders in the year:
In respect of the previous year
Ordinary final dividend of 14.5p per share (2023: 13.9p) 19.5 18.8
Supplemental interim dividend of 8.6p per share (2023: 2.0p) 11.6 2.8
In respect of the current year
Interim dividend of 7.4p per share (2024: 7.1p) 10.1 9.6
41.2 31.2
The Group paid £2.0m (2024: £2.6m) of dividends to non-controlling
interests.
The Board recommends a final dividend of 15.7p per ordinary share (amounting
to £21.8m), alongside the supplemental interim dividend of 10.7p per ordinary
share (amounting to £14.8m), to be paid on 18 May 2026 to Shareholders on the
register at 10 April 2026. These financial statements do not reflect this
dividend payable.
The total paid and recommended ordinary and supplemental dividend for the 2025
financial year comprises an aggregate distribution of 33.8p per ordinary share
(2024: 30.2p per ordinary share).
7(a). Basic and diluted earnings per share
2025 2025 2025 2024 2024 2024
Earnings Shares EPS Earnings Shares EPS
£m million pence £m million pence
Basic earnings per share 70.9 136.3 52.0 53.6 136.0 39.4
Effect of additional shares issuable under option - 7.5 (2.7) - 7.9 (2.2)
Diluted earnings per share 70.9 143.8 49.3 53.6 143.9 37.2
7(b). Underlying basic and diluted earnings per share
2025 2025 2025 2024 2024 2024
Earnings Shares EPS Earnings Shares EPS
£m million pence £m million pence
Basic earnings per share 70.9 136.3 52.0 53.6 136.0 39.4
Amortisation of intangible assets arising from
business combinations after tax 6.8 - 5.0 7.0 - 5.1
Exceptional impairments after tax 4.0 - 2.9 1.4 - 1.0
Share-based payment adjustment after tax 0.7 - 0.5 (0.7) - (0.5)
Profit on disposal of subsidiaries after tax (4.5) - (3.3) - - -
Restructuring costs after tax 23.2 - 17.0 14.1 - 10.4
Transaction-related costs after tax 3.5 - 2.6 15.6 - 11.5
Fair value gain on step acquisition of subsidiaries previously classified as - - - (4.4) - (3.2)
associates
Fair value loss on transaction-related options 0.7 - 0.5 3.4 - 2.5
Underlying basic earnings per share 105.3 136.3 77.2 90.0 136.0 66.2
Effect of additional shares issuable under option - 7.5 (3.9) - 7.9 (3.7)
Underlying diluted earnings per share 105.3 143.8 73.3 90.0 143.9 62.5
8. Cash generated from operations
2025 2024
£m £m
Profit for the year 73.6 52.9
Adjustments for:
Income tax 27.4 35.4
Depreciation 69.1 70.2
Amortisation of intangible assets 15.8 16.1
Fair value gain on step acquisition of subsidiaries previously classified as - (4.4)
associates
Net fair value (gain)/loss on derivative financial instrument and FVPL (1.1) 6.0
investments
Loss/(gain) on disposal of property, plant and equipment, intangible assets 0.2 (0.2)
and leases
Gain on disposal of subsidiaries (4.5) -
Impairments 4.6 1.9
Increase in provision for expected credit loss 2.2 8.3
Net finance income (7.5) (14.5)
Share of post-tax profit from joint ventures and associates (8.2) (7.5)
Dividends from other parties (0.7) (0.5)
Increase in employee and retirement obligations 3.9 0.6
Exchange movement in operating activities (1.9) (3.4)
Increase in provisions 2.2 2.0
(Increase)/decrease in insurance reimbursement asset (0.2) 0.4
Charge for share-based compensation 28.4 31.4
Operating cash flows before movements in working capital 203.3 194.7
Increase in inventories (0.1) -
Increase in trade and other receivables and contract assets (125.8) (58.2)
Increase in trade and other payables and contract liabilities 125.3 40.8
Cash generated from operations 202.7 177.3
Foreign exchange movements resulted in a £14.6m decrease in current and
non-current trade and other receivables (2024: £2.6m increase) and a £16.0m
decrease in current and non-current trade and other payables (2024: £5.7m
decrease).
9. Notional pooling arrangement
For internal cash management purposes, the Group maintains a notional cash
pooling arrangement with Barclays Bank PLC, whereby credit and debit cash
balances for the participating bank accounts are notionally offset. There is
no overdraft cost or charge associated with any pooled overdraft that is fully
offset by pooled credit cash balances. As at 31 December 2025, the notional
cash pooling arrangement included cash balances of £189.2m presented in cash
and cash equivalents (31 December 2024: £200.2m) and overdrafts of £187.2m
(31 December 2024: £199.3m) presented in current liabilities. This represents
as at 31 December 2025 surplus pooled credit cash balances of £2.0m (31
December 2024: surplus pooled credit cash £0.9m).
For the purpose of the statement of cash flows, cash and cash equivalents net
of overdrafts comprise the following:
2025 2024
£m £m
Cash and cash equivalents 531.6 536.5
Overdrafts in notional pooling arrangement (187.2) (199.3)
Bank overdrafts (3.4) (9.8)
341.0 327.4
10. Transactions
Acquisition of subsidiaries
The fair values of the assets acquired and liabilities assumed as part of the
Group's acquisitions in the year are provisional and will be finalised within
12 months of the acquisition date. These are summarised below:
Provisional fair value to the Group
Alpina Others Total
£m £m £m
Non-current assets: Property, plant and equipment 1.4 - 1.4
Investment property 14.5 - 14.5
Right-of-use asset 4.6 0.5 5.1
Intangible assets 1.1 1.7 2.8
Deferred tax asset 0.1 - 0.1
Current assets: Inventories 0.8 - 0.8
Trade and other receivables 43.1 0.6 43.7
Cash and cash equivalents 4.6 2.9 7.5
Current liabilities: Borrowings (10.3) - (10.3)
Lease liabilities (0.3) (0.1) (0.4)
Contract liabilities - (0.5) (0.5)
Trade and other payables (33.0) (1.5) (34.5)
Income tax liabilities (0.6) (0.3) (0.9)
Employee benefit obligations (0.2) - (0.2)
Provisions - (0.4) (0.4)
Non-current liabilities: Borrowings (8.9) - (8.9)
Lease liabilities (0.8) (0.5) (1.3)
Provisions (0.1) (0.3) (0.4)
Deferred tax liabilities (0.8) - (0.8)
Net assets 15.2 2.1 17.3
Non-controlling interest share of net liabilities/assets (4.6) - (4.6)
Net assets acquired 10.6 2.1 12.7
Goodwill 11.8 5.4 17.2
Purchase consideration 22.4 7.5 29.9
Consideration satisfied by:
Cash paid 22.4 7.5 29.9
K&T Investment Pte Ltd ('Alpina')
On 4 December 2025, the Group purchased 70% of the K&T Investment Pte Ltd
group which includes Alpina Holdings Pte Limited, Digo Corporation Pte
Limited, Kontourz Pte Limited, Digo Building Construction Pte Limited, Alpina
Energy Pte Ltd and Wan Dormitory Pte Ltd. Alpina is a leading provider of
government and public sector works in Singapore which offers a comprehensive
range of building solutions and Savills has options to increase the ownership
to 100% in 2030.
Total acquisition consideration is provisionally determined at £22.4m which
was paid upon acquisition.
Goodwill of £11.8m has been determined. Goodwill is attributable to the
experience and expertise of key staff members and is not expected to be
deductible for tax purposes.
Acquisition-related costs of £0.3m have been expensed as incurred to the
income statement and classified within other operating expenses.
The acquired business contributed revenue of £10.3m and profit of £3.1m to
the Group for the period from the date of acquisition to 31 December 2025. Had
the acquisition been made at the beginning of the financial year, revenue
would have been £65.6m and a profit of £5.1m would have been recognised.
The fair value of trade and other receivables of £43.1m includes £8.0m of
trade receivables. The gross contractual amount for trade receivables is
£8.6m, £0.6m of which is expected to be uncollectible.
Other acquisitions
On 31 March 2025, the Group acquired 100% of the equity interest in Osborne
King & Megran Limited ('Osborne King'), a commercial property agency in
Northern Ireland. In addition, on 1 August 2025 the Group purchased 100% of
Richard L. Hoffman & Associates, Inc. and Compustall Services Inc.
('Hoffman'), a relocation management consulting firm in the United States.
Total acquisition consideration for these transactions is provisionally
determined at £7.5m, which was all paid as cash consideration upon
completion. In addition, earn-out payments (contingent on retention of
property management clients and operating profit targets) are payable in
relation to the Osborne King acquisition over the period until the end of
2027. The maximum value of these payments total £3.5m and are deemed to be
linked to continued active engagement with the business. Earn-out payments are
also due on the Hoffman acquisition (contingent on retention and operating
profit targets), which are payable over the period to December 2032. The
maximum value of these payments total £13.5m and are deemed to be linked to
continued active engagement with the business. As required by IFRS 3, the
expected value of these payments will be expensed to the income statement over
the relevant period of engagement.
Goodwill of £5.4m has been provisionally determined. Goodwill is attributable
to the experience and expertise of key staff and strong industry reputation
and is not expected to be deductible for tax purposes.
Acquisition-related costs of £0.4m have been expensed as incurred to the
income statement and classified within other operating expenses.
The acquired businesses contributed revenue of £8.4m and a profit of £0.7m
to the Group for the period from acquisition to 31 December 2025. Had the
acquisitions been made at the beginning of the financial year, revenue would
have been £18.2m and the profit would have been £2.1m. The impact on the
Group's overall revenue and profits is not material.
The fair value of trade and other receivables acquired of £0.6m includes
£0.3m of trade receivables. The gross contractual amount for trade
receivables is £0.3m, all of which is expected to be collectible.
Disposal of subsidiaries
On 24 February 2025, the Group sold 51% of its ordinary A shares in Cureoscity
Technologies Limited ('CTL') for cash proceeds of £2.3m. From this date the
Group ceased to have control, with the Group equity accounting for CTL as an
associate from this date. The Group derecognised £0.9m of net assets,
including £0.2m of cash, and recognised a £2.6m investment in an associate.
The Group incurred transaction costs of £0.2m, resulting in a profit on
disposal of £3.8m.
On 30 September 2025, the Group sold it's 100% holding in Loudden Bygg-och
Fastighetsservice AB for cash proceeds of £0.6m. The Group derecognised net
liabilities of £0.1m, including £0.1m of cash, and recognised a profit on
disposal of £0.7m.
11. Borrowings
2025 2024
£m £m
Non-current
Secured bank loans 8.8 -
Loan notes 120.0 120.0
Transaction costs (issuance of loan notes) (0.1) (0.4)
128.7 119.6
Current
Bank overdrafts 3.4 9.8
Unsecured bank loans due within one year or on demand 33.0 1.5
Secured bank loans due within one year or on demand 11.6 -
Loan notes due within one year or on demand - 30.0
48.0 41.3
176.7 160.9
As at 31 December 2025, the Group held a £360.0m multi-currency revolving
credit facility ('RCF') expiring in February 2029 (with two 1-year extension
options and which can be increased by an additional £90.0m accordion
facility). As at 31 December 2025 £30.0m (2024: none) of the RCF was drawn
and classified as current. On 4 March 2026, the first 1-year extension option
was exercised, extending the RCF's maturity to February 2030.
Non-current loan notes reflect the £120.0m (2024: £150.0m, of which £120.0m
was non-current and £30.0m was current) of debt held by the Group through the
issuance of 7, 10 and 12 year fixed-rate private placement notes in the US
institutional market which were issued in June 2018. The 7 year private
placement notes, totalling £30.0m, were repaid in June 2025.
Movements in borrowings are analysed as follows:
2025 2024
£m £m
Opening amount as at 1 January 160.9 157.2
Additional borrowings (including overdraft movement)* 137.8 90.3
Repayments of borrowings (including overdraft movement)* (141.3) (88.2)
Addition through business combination 19.2 1.3
Amortisation of transaction costs 0.3 0.4
Foreign exchange (0.2) (0.1)
Closing amount as at 31 December 176.7 160.9
*2025 includes £6.2m in repayments of borrowings in relation to overdrafts.
2024 includes a £5.1m increase in overdraft balances within additional
borrowings and £0.8m increase in repayments of borrowings.
The Group has the following undrawn borrowing facilities:
2025 2024
Fixed Floating Total Fixed Floating Total
£m £m £m £m £m £m
Expiring within 1 year or on demand 0.1 80.7 80.8 0.1 61.2 61.3
Expiring between 1 and 5 years - 330.0 330.0 - 360.0 360.0
Expiring greater than 5 years 0.4 3.4 3.8 - - -
0.5 414.1 414.6 0.1 421.2 421.3
12. Related party transactions
As at 31 December 2025, there were £0.1m of loans receivable from joint
ventures and £0.9m of loans receivable from associates (2024: £0.5m of loans
receivable from joint ventures and £1.2m of loans receivable from associates
and £0.2m of loans payable to associates).
There were no other material related party transactions during the period. All
related party transactions take place on an arm's-length basis under the same
terms as those available to other customers in the ordinary course of
business.
13. Events after the balance sheet date
There have been no events that occurred after the reporting period that
require disclosure or events that require adjustment to the financial
statements or are considered to have a material impact on the understanding of
the Group's current financial position.
14. Annual report and accounts
Copies of the Annual Report and Accounts for the year ended 31 December 2025
will be circulated to shareholders on 7 April 2026 and will also be available
from the investor relations section of the Company website at
https://ir.savills.com/ (https://ir.savills.com/) or from:
Savills plc, 33 Margaret Street, London, W1G 0JD
Telephone: 020 7499 8644
Directors' responsibilities in respect of the financial statements
We confirm that to the best of our knowledge:
· that the consolidated financial statements, prepared in accordance
with UK-adopted international accounting standards give a true and fair view
of the assets, liabilities, financial position and profit of the parent
company and undertakings included in the consolidation taken as a whole; and
· the Annual Report, including the Strategic Report, includes a fair
review of the development and performance of the business and the position of
the company and undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties that they
face.
The contents of this announcement, including the responsibility statement
above, have been extracted from the annual report and accounts for the year
ended 31 December 2025, which will be available on publication
at https://ir.savills.com/ (https://ir.savills.com/) . Accordingly, this
responsibility statement makes reference to the financial statements of the
Company and the Group and the relevant narrative appearing in that annual
report and accounts rather than the contents of this announcement.
On behalf of the Board
Simon Shaw
Group Chief Executive Officer
Chris Lee
Group Legal Director and Company Secretary
12 March 2026
END
1 (#_ftnref1) Underlying profit before tax ('underlying profit') and
underlying basic EPS are alternative performance measures used to assess the
performance of the Group. Underlying profit is calculated on a consistently
reported basis in accordance with Note 3 to this Preliminary Statement.
Underlying EPS is calculated using underlying profit, with the weighted
average number of shares remaining the same as the GAAP measure.
2 (#_ftnref2) Net cash reflects cash and cash equivalents net of borrowings
and overdrafts in the notional pooling arrangement (see Note 9).
(( 3 (#_ftnref3) )) Constant currency is an alternative performance measure
used to assess the performance of the Group. Revenue and underlying profit for
the year are translated at the prior year exchange rates to provide a constant
currency comparison.
4 (#_ftnref4) ISIN code for the ordinary shares of the Company is
GB00B135BJ46 and the ticker/TIDM code is SVS.
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