Real-estate adviser Savills (SVS) notched up another year of record profits in 2016, and shareholders were rewarded with another special dividend (see table). Commercial and residential transaction advisory business, which makes up nearly half of the group's top line, saw underlying revenue up by 4 per cent, despite weakness in the UK market, with a very strong contribution coming from continental Europe and China. Overall, the Asia-Pacific residential business pushed revenue up by a quarter.
Trading in North America saw revenue fall by 3 per cent at constant currencies. Nearly all of this reflected companies putting off decisions until after the presidential election, and the pipeline shows a number of sizeable transactions are expected to be completed in the current financial year.
In mainland Europe, the commercial advisory business saw revenue up by 14 per cent in constant currency terms at £71.5m, with a strong contribution from Germany, France and the Netherlands. In property and facilities management, underlying profits rose by 12 per cent to £23.6m, as Asia-Pacific trading lifted with the transaction business. Investment management revenue grew by a half at constant currencies, to £72m.
Analysts at Peel Hunt are forecasting adjusted pre-tax profits of £130m for 2017 (£136m in 2016) and EPS of 63.7p.
| SAVILLS (SVS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 865.5p | MARKET VALUE: | £1.21bn | |
| TOUCH: | 864-866.5p | 12-MONTH HIGH: | 897p | LOW: 542p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 290p** | NET CASH: | £188m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)* |
|---|---|---|---|---|
| 2012 | 0.81 | 52.0 | 29.4 | 10 |
| 2013 | 0.90 | 70.1 | 39.8 | 10.5 |
| 2014 | 1.08 | 84.7 | 46.8 | 11 |
| 2015 | 1.28 | 98.6 | 47.0 | 12 |
| 2016 | 1.45 | 99.8 | 48.8 | 14.5 |
| % change | +13 | +1 | +4 | +21 |
Ex-div: 13 Apr Payment: 15 May *Excluding special dividends of 6p in 2012, 8.5p in 2013, 12p in 2014, 14p in 2015 and 14.5p in 2016 **Including intangible assets of £370m, or 264p a share | ||||
