Savills reports 11.5% rise in first half profits

Real estate agent Savills posted an 11.5% increase in first half underlying pre-tax profit on Tuesday, as strong growth in residential revenue offset a fall in commercial transactions.

Group underlying profit before tax came to £42.8m in the six months ended 30 June, up from £38.4m the same period a year earlier.

Revenue gained 14% to £622.7m, driven by a robust performance in residential markets and gross across all markets in the UK, Asia Pacific, Continental Europe and North America.

However, the UK commercial property business was hit by uncertainty leading up to the European Union referendum on 23 June, with underlying profits down 54% to £2.7m.

“In the UK, the breadth of our service lines and a strong residential performance more than offset the impact of reduced commercial transaction volumes in advance of the EU Referendum,” Savills said.

Looking ahead to the second half, Savills chief executive Jeremy Helsby said the “fundamental attributes of real estate as an investment class remain strong” although the outlook was unclear in the wake of Brexit and during the traditionally quieter summer period.

Savills left its full year expectations unchanged but said the “range of potential outcomes has broadened over recent weeks”.

The company raised its interim dividend by 10% to 4.4p per share.

Shares rose 0.51% to 688.50p at 1001 BST.