Savills Regulatory News (SVS)

3 Jul 2006 07:01

Savills PLC03 July 2006 For immediate release 3 July 2006 SAVILLS PLC ("Savills" or "the Company") Trading Update Savills, the international property services company, provides the followingtrading update for the half-year, prior to the interim results for the firsthalf of 2006, which are scheduled for release on 5 September 2006. Overview At the time of our Annual General Meeting the Chairman reported that the Grouphad, overall, performed in line with our expectations and ahead of thecorresponding period last year. The current position is set out below: Main Business Streams: Transactional The commercial property investment market throughout the UK remains strong andthe first half has seen a continuing high level of transaction volumes. Thereis continued high demand for property from private and institutional buyers bothin the UK and overseas. Tenant demand in both London and the regionalcommercial markets is improving. Residential markets have been particularly buoyant in London and had a muchstronger first half than was the case in 2005, although we do not expect thistrend to continue into the second half. In Asia, the commercial investment markets have showed signs of slowing, due torising interest rates. In key European markets our investment teams areperforming well. Consultancy Our Consultancy business has performed well. The demand for property servicesremains high and we have continued to expand and develop our professional teams,particularly in the areas of valuation and planning. Property Management The UK and European commercial property management business has benefited fromorganic growth, acquisition and key recruitment. In Hong Kong and China we havealso increased the size and scope of our property and facility managementbusiness. Financial Services Our private client financial services business continues to perform well. Fund Management Having built on its existing infrastructure, Cordea Savills' funds undermanagement continue to grow steadily. Outlook The first half has seen strong investment markets especially in the UK and inkey European markets and this should ensure that commercial activity levelsremain high in 2006. Residential markets have been buoyant in the first half of2006. While our order book remains stronger than last year, we have somecaution that the residential markets may not be as buoyant in the second half.The Board is, therefore, currently of the view that the Group is well placed todeliver full year results in line with our existing expectations. ENDS For further information, please contact: Savills Aubrey Adams 020 7409 9923 Citigate Dewe Rogerson Simon Rigby/Sarah Gestetner 020 7638 9571 This information is provided by RNS The company news service from the London Stock Exchange