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17 Dec 2008 07:00
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17Β DecemberΒ 2008
SAVILLSΒ PLC
("Savills" or "the Company")
Trading UpdateΒ
Savills, the international property adviser, publishes its trading update for the year ended 31 December 2008 prior to entering the close period before the announcement of full year results, which is scheduled for release on 11 March 2009.
Since our Interim Management Statement on 17 OctoberΒ 2008, our Transactional businesses world-wide have continued to operate in challenging markets.Β Whilst some deals are completing, we are not seeingΒ the seasonal pick up in activity weΒ have grown toΒ expect.Β Many pipeline transactions, which were at an advanced stage, have either been delayed or are not proceeding.
Our ConsultancyΒ businesses are continuing to trade well but areΒ starting to see the effects of the challenging market conditionsΒ withΒ a slowdown in new instructions.
TheΒ Property Management businesses continueΒ to experience good demand for their services.
Fund ManagementΒ isΒ benefitingΒ from its contracted revenue streams, but, given the current economic climate, fund raising during the yearΒ has beenΒ modest and transaction feesΒ have beenΒ lower than planned.
Financial Services,Β which is predominately UK Mortgage broking,Β has seenΒ market conditionsΒ deteriorateΒ further.Β
Overall, ourΒ mainΒ UKΒ Residential, UK Commercial and AsianΒ businessesΒ are performingΒ as expectedΒ duringΒ the last quarter of 2008. However, our businesses in Europe and theΒ USΒ and our mortgage broking business, which areΒ allΒ veryΒ heavily dependent on transactions, have experienced a significant fall off inΒ expected 2008Β volume.Β
December is an important trading month and billing is stillΒ takingΒ place. However,Β weΒ nowΒ expectΒ our underlying profit before taxΒ for 2008Β to beΒ significantlyΒ belowΒ the current range of analyst forecasts.
In theseΒ challenging markets,Β ourΒ robust balance sheet and committed bank facilities until 2011Β are a major strength. The Board will consider its dividend policy in light of the full year result for 2008 andΒ trading in the early part ofΒ 2009.
A return to higher levels of transactional activity will depend on how quickly confidence returns to financial markets. The steps that we continue to take to reduce costsΒ and our successful strategy of reducing dependence on transactional income will continue to serve us wellΒ in these uncertain times.Β
For further information, contact:
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Savills |
020 7409 8844 |
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Jeremy HelsbyΒ |
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|
Mark DearsleyΒ |
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|
Danny O'Donnell |
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|
Tulchan |
020 7353 4200 |
|
John Sunnucks |
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|
Paul HarrisΒ |
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