16 January
2025
SAVILLS PLC
("Savills" or the
"Group")
Year-End Trading
Statement
Improved performance in line
with expectations
Savills plc, the global real estate
advisor, publishes the following trading statement in respect of
the year ended 31 December 2024.
The Group expects its full year
performance for 2024 to be in line with its expectations and
substantially ahead of the previous year.
This is a good performance given
significant volatility in transactional market sentiment over the
course of 2024, which has nevertheless shown recovery in most
markets. The trajectory of that recovery was inevitably
somewhat shallower than anticipated at the start of the year; for
investors this was a function of macroeconomic and geopolitical
events including the impact of elections in key markets,
significant volatility in bond yields and, latterly the interest
rate expectation being "higher for longer". For corporate
occupiers, these factors, together with the actual and potential
impact of economic and fiscal policies in a number of core markets,
limited the urgency to transact.
The performance of Savills EMEA
business improved substantially year-on-year. The largest
component, the UK, performed strongly supported by the resilience
of the prime residential business, our market share in commercial
transactions and by our substantial Less Transactional service
lines. In Continental Europe and the Middle East, improved
trading results in the majority of countries were helped by further
restructuring in France and Germany.
Savills delivered a significant
year-on-year improvement in performance in North America, despite a
number of transactions being deferred into Q1 2025.
In Asia, whilst activity in Greater
China remained subdued during the year, Savills has continued to
benefit from the underpinning provided by the Group's substantial
Property and Facilities Management business in that region.
Elsewhere, Japan and Vietnam performed well and we saw signs of
recovery through the last quarter in Australia and
Singapore.
Savills Investment Management ("SIM")
traded broadly in line with our expectations; that 2024 would be
the nadir for "core" and "core plus" style investment managers, as
pricing corrected through the period and bonds/fixed income
provided both attractive short term alternative returns and price
certainty. Raising and the deployment of capital was
inevitably harder during this period, however SIM successfully
raised c.£2bn and launched two new pooled fund products (one debt;
one equity).
The Group's strength across our Less
Transactional service lines continued to provide a resilient
earnings stream, with the Consultancy and Property Management
businesses performing well in aggregate.
In the year ahead, challenging macro
conditions are expected to continue for some time; however, most
markets are in recovery and as we enter 2025, whilst current
financial markets are characterised by uncertainty, sentiment has
turned to expectations of progressive reductions in the cost of
capital being likely during the year. We expect re-financing
driven activity, the sustainability agenda and the trend towards
corporates requiring greater office attendance for staff, to
continue to be positive for transaction volumes. These
factors lead us to expect continued improvement through
2025.
Savills intends to report 2024 full
year results on 13 March 2025.
For
further information, contact:
Savills 020 7409 8934
Mark Ridley, Group Chief Executive
Officer
Simon Shaw, Group Chief Financial
Officer
Teneo Communications 020 7353
4200
Jo Blackshaw / 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 2023 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.