Savills holds guidance as profits jump amid signs of recovery

Real estate firm Savills held annual guidance as it reported a sharp jump in interim profits amid signs of a global recovery, although major markets were still "subdued".

Pre-tax profits for the first six months of the year surged 48% to £9m as revenue rose 5% to £1.06bn.

"Our improved performance in the first half reflects the positive effects of early recovery phases in a number of our markets, as well as the robust and growing earnings provided by our less transactional businesses," said chief executive Mark Ridley.

"Whilst we have seen resilience in prime commercial leasing markets, global capital transaction volumes remain subdued, although activity is recovering in certain markets."

Savills said major markets, such as Germany, France and Greater China, remained were still reporting "very low" transaction volumes as real estate markets adjust to "challenging conditions".

"Our expectations for the current year remain unchanged."

Reporting by Frank Prenesti for Sharecast.com