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Diversity boosts underlying profits at Savills

Solid gains in Asia Pacific and residential fee income more than offset a drop in UK commercial transactions.
August 9, 2016

A diverse revenue stream at Savills (SVS) helped the retail estate advisor to shrug off the effects of the EU referendum on the UK commercial side of the business, and after taking out exceptional items, underlying profits grew by 8 per cent to £42.8m.

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A drop in transactional volume on the UK commercial property side saw fee income dip by 23 per cent to £32.1m. However, residential fee income grew by 10 per cent to £57.2m, boosted by a significant increase in volume ahead of the stamp duty levy imposed from 1 April. And despite lower activity in the second quarter, Savills helped to mitigate the effects by expanding its activity in lower value homes, particularly in London.

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