REG - Savills PLC - Trading update

SavillsAnnouncement

09/11/2021 07:00

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RNS Number : 7182R  Savills PLC  09 November 2021

 

9 November
2021

SAVILLS PLC

("Savills" or the "Group")

 

Trading Update

 

 

 

Savills plc, the global real estate advisor, publishes the following trading
update in respect of current trading:

 

As indicated with the interim results in August 2021, in the first half the
Group experienced a strong period of trading, reflecting both the robustness
and geographic diversity of our business and the strategy of maintaining
staffing levels throughout the course of the pandemic.

 

Since June, the Group has continued to trade strongly, particularly in the UK
and Asia Pacific regions, and we have started to see the anticipated levels of
recovery in Continental Europe and the Middle East ("CEME") and North America,
albeit the latter regions have yet to return to 2019 levels of activity.
Savills Investment Management has continued to perform well, somewhat ahead of
expectations, bolstered by the early exercise of the option to acquire the
remaining interests in DRC Capital LLP and its strong performance since May.

 

The continued strength of UK prime residential markets has exceeded our
expectations and the anticipated tapering of market volumes in our segments is
now expected to take effect through 2022 rather than significantly affecting
performance in H2 2021. This, together with better than anticipated
improvements in the UK commercial capital transaction markets, indicates that
for the financial year as a whole the UK business is likely to materially
exceed both our earlier expectations for 2021 and the outturn for 2019. We
also expect outperformance in the Asia Pacific region on both bases.

 

In addition to improved trading, the Group has benefited from a continuation
of lower than normal levels of discretionary expenditure which is expected to
continue through the remainder of the year. We anticipate that this
expenditure will progressively increase through 2022.

 

In summary, strong trading conditions in a number of our businesses and
largely non-recurring cost savings indicate that, subject to the impact of
further COVID related lockdowns and the pace of transaction execution in this
final quarter, the Group is likely to achieve overall profits materially ahead
of 2019 for the current year, before a resumption of more normalised trading
and cost dynamics in 2022.

 

 

 

For further information, contact:

 

Savills    020 7409 8934

Mark Ridley, Group Chief Executive

Simon Shaw, Group Chief Financial Officer

 

Tulchan Communications    020 7353 4200

Elizabeth Snow

 

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. The Group's principal risks are described
in the 2020 Savills plc Annual Report which can be viewed online at
http://www.savills.com (http://www.savills.com) . 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.

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