It’s important to bear in mind that revenue from the UK residential market makes up just 7 per cent of revenue for Savills (SVS), and, once again, its diversified business model served it well in the year to December 2018.
Even the UK residential market managed 2 per cent revenue growth, with a 2 per cent fall in sales value offset by a 1 per cent increase in transactions. Interestingly, prime central London exchanges rose by 4 per cent, and those with capital values of more than £15m jumped by 43 per cent.
However, one of the main growth area was North America, where revenue grew by 21 per cent in constant currency terms, while underlying profits were up by nearly two-thirds at £12.9m, reflecting a boost in margins from 3.5 per cent to 4.8 per cent.
Commercial fee income was very strong in Europe and the Middle East, rising by 43 per cent to £113.1m. Much of this reflected the benefit of two acquisitions. On the property and facilities management side, revenue grew by 16 per cent to £586.6m, with the total area under management up by four per cent to 2.03bn square feet. Underlying profits rose by 27 per cent to £32.2m.
Analysts at Numis are forecasting adjusted pre-tax profits for the year of £138.5m and EPS of 75p from £143.7m and 77.8p in 2018.
| SAVILLS (SVS) | ||||
| ORD PRICE: | 861.5p | MARKET VALUE: | £ 1.23bn | |
| TOUCH: | 861-863p | 12-MONTH HIGH: | 1,000p | LOW: 678p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 353p** | NET CASH: | £73.9m | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 1.08 | 84.7 | 46.8 | 11 |
| 2015 | 1.28 | 98.6 | 47.0 | 12 |
| 2016 | 1.45 | 100 | 48.8 | 14.5 |
| 2017 | 1.60 | 112 | 58.8 | 15.1 |
| 2018 | 1.76 | 109 | 56.2 | 15.6* |
| % change | +10 | -3 | -4 | +3 |
| Ex-div: | 11 Apr | |||
| Payment: | 13 May | |||
| *Not including special dividend of 15.6p a share **Including intangible assets of £433m, or 302p a share | ||||
