|Master Investor Magazine
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Revenues at property services firm Savills (LON:SVS) rose by 10% during the year ended 31st December, but statutory profits before tax for the period dropped by 3.03% to £109.4 million. There were some bright spots in North America and Europe and the firm’s non-transactional businesses performed well.
Chief executive Mark Ridley said: “Savills delivered both revenue and underlying profit growth in 2018, driven by a robust second half of the year. In addition to maintaining or growing our share of transactional markets, the performance of our less transactional business lines was key to this performance.
We have made a solid start to 2019; however, the year ahead is overshadowed by macro-economic and political uncertainties across the world. It is difficult accurately to predict the impact of these issues on corporate expansionary activity and investor demand for real estate. At this stage, we expect to see declines in transaction volumes in a number of markets and growth in our less transactional business lines; accordingly we retain our expectations for the Group’s performance in 2019“.
Savills’ share price fell by 3.21% to 893.88p (as of 15:00 GMT).