Interim Results - Pre-tax Profit Up 69%
Savills PLC
11 January 2000
SAVILLS PLC
INTERIM PROFITS INCREASE BY 69%
for the six months ended 31 October 1999
* Group pre-tax profit was up 69% at £8.8m (1998 - £5.2m).
* Group turnover for the six months was up 72% at £64.1m
(1998 - £37.2m).
* Interim dividend increased to 3.0p (net) per share (1998
- 1.75p).
Richard Jewson, Chairman of Savills plc, comments: 'This half
year shows record results for the Group with strong
performance across the divisions. We have taken full
advantage of very firm residential and commercial markets, and
have made progress throughout our offices in the UK and on
mainland Europe.
'We expect demand for our services to remain strong although
it will be difficult to maintain the rate of growth achieved
recently. We have excellent teams of professionals who remain
highly motivated. We will continue to strengthen our business
in areas where we can create value, and we are actively
developing and investing in our international network.'
*** Chairman's Statement and Interim Results follow ***
Savills plc. Registered in England No. 2122174. Registered
Office 20 Grosvenor Hill, Berkeley Square, London W1X 0HQ
For further information, contact:
Richard Jewson/Aubrey Adams (Savills)
0171 466 5000 until 1pm today, thereafter on 0171 409 9923
Mark Edwards/Kirsty Robeson (Buchanan Communications)
0171 466 5000
CHAIRMAN'S STATEMENT
RESULTS AND DIVIDEND
I am delighted to announce that profit before tax for the six
months ended 31 October 1999 was up 69% at £8.8m (1998 -
£5.2m). Earnings per share were 11.3p (1998 - 6.7p).
Turnover was up 72% at £64.1m (1998 - £37.2m). The balance
sheet shows cash of £24.4m. The Directors have declared an
interim dividend of 3.0p (1998 - 1.75p). This 71% increase
continues our progressive dividend policy and is also intended
to provide a better balance between interim and final
payments.
TRADING REVIEW
This half year shows record results for the Group with strong
performance across the divisions. We have taken full
advantage of very firm residential and commercial markets, and
have made progress throughout our offices in the UK and on
mainland Europe.
The Grosvenor Hill Ventures group started the year strongly
with a profit of £1.5m, following sales of properties in
Edinburgh and Liverpool.
In pursuit of our strategy to build our position in the
management of residential property, we have acquired the
residential corporate lettings and management business of
Bradford & Bingley Estate Agencies Limited. We have also
acquired the 50% shareholding in Trigon Limited, our
facilities management company, previously owned by Castle
View.
PROPERTY SERVICES
Agency
Outstanding results have been driven by high volume and high
value transactions both in the London and regional offices of
our Commercial practice, where we have gained market share,
and in the residential market with record results across all
our regions. We are expanding our new homes division into
Birmingham and other major centres. The investment market has
been buoyant and we have carried out some notable instructions
during the period. We have added to our teams in London and
in the regions.
Professional
All professional departments are busy with profitable work.
Valuation has performed particularly well. Our planning
capability has increased with the successful integration of
Shaw Cramond, which we acquired last year.
International
The alliance with First Pacific Davies is proving successful
and the re branding exercise in Australia has been completed.
There are now 86 offices in 21 countries in the
grouping. Our offices in Germany, France and Spain have
produced a very satisfactory return while growing their client
base.
FINANCIAL SERVICES
Grosvenor Hill Ventures, as well as completing the sales noted
above, has acquired an village in West
Yorkshire to be known as Bailey Mills Shopping Village.
Savills Private Finance has performed in line with
expectations while expanding its team of consultants. Savills
Finance continues to work on Residential Property
Unit Trust in its role as Fund Operations Adviser.
OUTLOOK
We expect demand for our services to remain strong although it
will be difficult to maintain the rate of growth achieved
recently. We have excellent teams of professionals who remain
highly motivated. We will continue to strengthen our business
in areas where we can create value, and we are actively
developing and investing in our international network.
Richard Jewson, Chairman
11 January 2000
Interim Results
(Unaudited)
Six months Six months Year to
to 31.10.99 to 31.10.98 30.04.99
£'000 £'000 £'000
Turnover
Group and share of joint 64,165 37,423 102,947
ventures
Less share of joint ventures (29) (228) (587)
Total group turnover 64,136 37,195 102,360
Operating profit
Group - continuing 8,531 3,871 13,840
operations
- acquisitions (125) - 154
Share of joint ventures (33) 38
(19)
Share of associates 149 223 170
Loss on disposal of property - - (59)
Profit on disposal of - 878 908
investment
Profit before interest and 8,536 4,939 15,051
taxation
Net interest
Group 217 385 417
Joint ventures - - 1
Associates 85 (101) (52)
Profit on ordinary 8,838 5,223 15,417
activities before taxation
Taxation on profit on (3,097) (1,758) (5,494)
ordinary activities
Profit on ordinary 5,741 3,465 9,923
activities after taxation
Minority interests (270) (200) (155)
Profit for the financial 5,471 3,265 9,768
period
Dividends (1,459) (939) (2,770)
Profit for the period 4,012 2,326 6,998
transferred to reserves
Earnings per share 11.3p 6.7p 20.1p
Fully diluted earnings per 10.3p 6.3p 18.9p
share
Dividends per share 3.0p 1.75p 5.75p
SUMMARY GROUP BALANCE SHEET
at 31 October 1999
Restated
31.10.99 31.10.98 30.4.99
£'000 £'000 £'000
Tangible assets 9,956 8,029 8,881
Intangible assets 8,480 5,637 5,987
Investments
Investments in
joint ventures
Share of gross
assets - 835 1,022
Share of gross
liabilities - (788) (903)
Investments in
associates 148 153 44
Other investments 4,042 3,386 3,855
22,626 17,252 18,886
Working capital 18,732 14,548 3,308
Cash 24,444 13,751 26,515
Net current assets 43,176 28,299 29,823
Long-term creditors &
provisions
(16,210) (4,636) (3,385)
Net assets 49,592 40,915 45,324
Called up equity 2,693 2,684 2,689
share capital
Reserves
Share premium 25,104 25,002 25,060
Profit & loss 21,451 12,936 17,501
Shareholders funds -
equity 49,248 40,622 45,250
Minority interests -
equity 344 293 74
49,592 40,915 45,324
CONSOLIDATED CASH FLOW STATEMENT
Six months Six months Year to
to 31.10.99 to 31.10.98 30.04.99
£'000 £'000 £'000
Net cash (outflow)/inflow
from operating activities (1,072) (4,843) 14,771
Dividends received from
associates - 150 310
Net cash inflow from
returns on investments &
servicing of finance 424 284 205
Tax paid (518) (30) (3,516)
Net cash outflow
from capital expenditure &
financial investment (3,032) (3,097) (6,296)
Net cash outflow from
acquisitions
& disposals (4,017) (2,562) (1,716)
Equity dividends paid (2,014) (1,717) (2,546)
Cash (outflow)/in flow before
use of liquid resources &
financing (10,229) (11,815) 1,212
Management of liquid resources 1,619 9,211 (4,399)
Financing 6,726 (636) (1,850)
Decrease in cash for the period (1,884) (3,240) (5,037)
STATEMENT OF TOTAL RECOGNISED GAINS & LOSSES
Six months Six months Year to
to 31.10.99 to 31.10.98 30.04.99
£'000 £'000 £'000
Profit for the financial
period 5,471 3,265 9,768
Exchange movements on
foreign currency net
investments (43) - (38)
Total recognised gains &
losses relating to the
period 5,428 3,265 9,730
NOTES
1. The interim accounts in respect of the six months ended
31 October 1999 and the comparative figures in respect of the
six months ended 31 October 1998 are unaudited. The
comparative figures for the financial year ended 30 April 1999
are not the Company's statutory accounts for that financial
year. Those accounts have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The
report was unqualified and did not contain a statement under
Section 237(2) or (4) of the Companies Act 1985.
2. The tax charge has been calculated on the basis of the
underlying rate of 30% adjusted for any disallowable
charges.
3. The calculation of earnings per share is based on a
weighted average number of shares in issue of 48,588,000
(six months to 31 October 1998 - 48,709,000 and year to
30 April 1999 - 48,580,000). The calculation of fully
diluted earnings per share is based on a weighted average
number of shares of 52,964,000 (6 months to 31 October
1998 - 51,608,000 and year to 30 April 1999 -
51,777,000).
4. An interim dividend of 3.0p (net) per share will be
paid on 18 February 2000 to shareholders on the register as at
28 January 2000. The current number of shares in issue is
53,850,628.
5. Segmental Analysis
6 months to 31.10.99
Financial Property Holding
Commercial Services Companies Company Group
£'000 £'000 £'000 £'000 £'000 £'000
Turnover
(group &
joint 20,410 32,522 1,548 9,669 16 64,165
ventures) (29) - - - - (29)
Less share
of joint
ventures
Total Group
turnover 20,381 32,522 1,548 9,669 16 64,136
Operating
profit/
(loss) 3,536 3,974 (179) 1,924 (849) 8,406
Share of
joint
ventures (19) - - - - (19)
Share of
associates - - 149 - - 149
Profit/(loss)
before
interest 3,517 3,974 (30) 1,924 (849) 8,536
Net interest
Group 175 102 (77) (368) 385 217
Associates - - 85 - - 85
Profit
before
taxation 3,692 4,076 (22) 1,556 (464) 8,838
6 months to
31.10.98
Profit
before
taxation
(restated) 2,280 1,876 789 (248) 526 5,223
Copies of this statement are being sent to shareholders and
are available from:
Savills plc, 20 Grosvenor Hill, Berkeley Square, London W1X
0HQ
Telephone: 0171 409 9920 Fax: 0171 409 1800 Contact:
Lizzie Jackson
In addition, copies in alternative formats i.e. large print,
audio tape, braille are available if required from Lloyds TSB
Registrars, The Causeway, Worthing, West Sussex BN99 6DA.
This information is also available on the Company's website
at: www.fpdsavills.co.uk
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