REG - Savills PLC - Year End Trading Update

SavillsAnnouncement

16/01/2025 07:00

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RNS Number : 4852T  Savills PLC  16 January 2025

 

 

16 January
2025

SAVILLS PLC

("Savills" or the "Group")

 

Year-End Trading Statement

 

Improved performance in line with expectations

 

 

Savills plc, the global real estate advisor, publishes the following trading
statement in respect of the year ended 31 December 2024.

 

The Group expects its full year performance for 2024 to be in line with its
expectations and substantially ahead of the previous year.

 

This is a good performance given significant volatility in transactional
market sentiment over the course of 2024, which has nevertheless shown
recovery in most markets.  The trajectory of that recovery was inevitably
somewhat shallower than anticipated at the start of the year; for investors
this was a function of macroeconomic and geopolitical events including the
impact of elections in key markets, significant volatility in bond yields and,
latterly the interest rate expectation being "higher for longer".  For
corporate occupiers, these factors, together with the actual and potential
impact of economic and fiscal policies in a number of core markets, limited
the urgency to transact.

 

The performance of Savills EMEA business improved substantially year-on-year.
The largest component, the UK, performed strongly supported by the resilience
of the prime residential business, our market share in commercial transactions
and by our substantial Less Transactional service lines.  In Continental
Europe and the Middle East, improved trading results in the majority of
countries were helped by further restructuring in France and Germany.

 

Savills delivered a significant year-on-year improvement in performance in
North America, despite a number of transactions being deferred into Q1 2025.

 

In Asia, whilst activity in Greater China remained subdued during the year,
Savills has continued to benefit from the underpinning provided by the Group's
substantial Property and Facilities Management business in that region.
Elsewhere, Japan and Vietnam performed well and we saw signs of recovery
through the last quarter in Australia and Singapore.

 

Savills Investment Management ("SIM") traded broadly in line with our
expectations; that 2024 would be the nadir for "core" and "core plus" style
investment managers, as pricing corrected through the period and bonds/fixed
income provided both attractive short term alternative returns and price
certainty.  Raising and the deployment of capital was inevitably harder
during this period, however SIM successfully raised c.£2bn and launched two
new pooled fund products (one debt; one equity).

 

The Group's strength across our Less Transactional service lines continued to
provide a resilient earnings stream, with the Consultancy and Property
Management businesses performing well in aggregate.

 

In the year ahead, challenging macro conditions are expected to continue for
some time; however, most markets are in recovery and as we enter 2025, whilst
current financial markets are characterised by uncertainty, sentiment has
turned to expectations of progressive reductions in the cost of capital being
likely during the year.  We expect re-financing driven activity, the
sustainability agenda and the trend towards corporates requiring greater
office attendance for staff, to continue to be positive for transaction
volumes.  These factors lead us to expect continued improvement through 2025.

 

Savills intends to report 2024 full year results on 13 March 2025.

 

 

 

For further information, contact:

Savills    020 7409 8934

Mark Ridley, Group Chief Executive Officer

Simon Shaw, Group Chief Financial Officer

 

Teneo Communications    020 7353 4200

Jo Blackshaw / 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 2023 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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