REG - Savills PLC - Half-year Report <Origin Href="QuoteRef">SVS.L</Origin> - Part 3

SavillsAnnouncement

10/08/2017 07:06

- Part 3: For the preceding part double click  ID:nRSJ5820Nb 

38.2            40.8                
 
 
 SFM Plan                                                                                                                                                               30 June 2017£m  30 June 2016£m  31 December 2016£m  
 Present value of funded obligations                                                                                                                                    13.8            14.4            14.4                
 Fair value of plan assets                                                                                                                                              (14.8)          (13.9)          (14.0)              
 (Asset)/liability recognised in the statement of financial position (included in retirement benefits non-current asset / retirement and employee benefit obligations)  (1.0)           0.5             0.4                 
 
 
The amount recognised within the income statement in relation to the UK Plan
for the period ended 30 June 2017 is a net interest cost of £0.5m (30 June
2016: £0.2m, 31 December 2016: £0.4m). 
 
The amount recognised within the income statement in relation to the SFM Plan
for the period ended 30 June 2017 is a current service cost of £0.1m (30 June
2016: £0.1m, 31 December 2016: £0.2m). 
 
Included in retirement and employee benefit obligations is £28.0m relating to
holiday pay and long service leave (30 June 2016: £24.1m, 31 December 2016:
£25.0m). 
 
14. Borrowings 
 
Movements in borrowings are analysed as follows: 
 
                                                  £m      
 Opening amount as at 1 January 2017              35.8    
 Additional borrowings (including overdraft)      183.4   
 Repayments of borrowings                         (40.8)  
 Exchange movements                               (0.1)   
 Closing amount as at 30 June 2017                178.3   
 
 
                                                        30 June 2017  30 June 2016  31 December 2016  
 Current                                                £m            £m            £m                
 Bank overdrafts                                        2.4           0.4           0.2               
 Unsecured bank loans due within one year or on demand  175.9         131.8         35.6              
                                                        178.3         132.2         35.8              
 
 
The Group has the following undrawn borrowing facilities: 
 
                                          30 June 2017  30 June 2016  31 December 2016  
                                          £m            £m            £m                
 Floating rate                                                                          
 - expiring within one year or on demand  21.4          20.6          23.2              
 - expiring between 1 and 5 years         75.0          119.2         216.0             
                                          96.4          139.8         239.2             
 
 
The Group maintains a £250.0m revolving credit facility ('RCF'), which expires
on 15 December 2020 and can be increased by an additional £50.0m Accordion
facility. As at 30 June 2017 £175.0m (30 June 2016: £131.5m) of the £250.0m
RCF was drawn. 
 
15. Related party transactions 
 
As at 30 June 2017, there were no loans outstanding to associates and £0.1m of
loans outstanding to joint ventures (30 June 2016: £nil, 31 December 2016:
£nil). 
 
There were no 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. 
 
16. Contingent liabilities 
 
In common with comparable professional services businesses, the Group is
involved in a number of disputes in the ordinary course of business. Provision
is made in the financial statements for all claims where costs are likely to
be incurred and represents the cost of defending and concluding claims. The
Group carries professional indemnity insurance and no separate disclosure is
made of the cost of claims covered by insurance as to do so could seriously
prejudice the position of the Group. 
 
17. Seasonality 
 
A significant percentage of revenue is seasonal which has historically caused
revenue, profits and cash flow from operating activities to be lower in the
first half and higher in the second half of each year. The concentration of
revenue and cash flow in the fourth quarter is due to an industry-wide focus
on completing transactions toward the calendar year end. 
 
18. Events after the balance sheet date 
 
Larry Smith Srl 
 
On 1 July 2017, the Group acquired 100% of the equity interest in Larry Smith
Srl, a shopping centre and out of town management and leasing business based
in Italy, for consideration of E8.0m of which E5.6m was paid on completion.
The remainder of the consideration is payable on the second anniversary
(E1.6m) and third anniversary (E0.8m) of completion. Further deferred
consideration is linked to revenue and margin targets, which is currently
estimated to be E0.3m. Combined with Savills existing capital markets and
valuation business in Italy, the acquisition enhances Savills service offering
in Italy. 
 
An exercise to determine total acquisition consideration and the fair value of
the assets acquired and liabilities assumed is underway for this acquisition. 
 
Aguirre Newman S.A. 
 
On 28 July 2017, the Group announced it will acquire 100% of the equity
interest in Aguirre Newman S.A., a leading Spanish real estate advisor, for
total consideration of up to E67.0m, of which E42.0m will be paid on
completion. The remainder of the consideration will be payable in equal
instalments over five years from completion. The acquisition is scheduled to
complete by the end of November 2017, following the satisfaction of regulatory
and closing conditions. The acquisition will complement and significantly
expand the Group's presence in the Spanish real estate market. 
 
SHAREHOLDER INFORMATION 
 
Like many other listed public companies, Savills no longer issues a hard copy
of the Interim Statement to shareholders. 
 
This announcement together with the attached financial statements and notes
may be downloaded from the investor relations section of the Company website
at www.savills.com. 
 
This information is provided by RNS
The company news service from the London Stock Exchange