Last checked at 9 Nov 2021 07:00
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. 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.