RNS Number : 2291E
08 May 2013
8 May 2013
("Savills" or "the Company")
AGM Statement and Interim Management Statement
Savills plc, the international real estate advisor, is today holding its Annual General Meeting (AGM) at 12 noon, 20 Grosvenor Hill, Berkeley Square, London W1K 3HQ and provides the following Interim Management Statement (IMS) for the period to 8 May 2013.
During the first four months of the year Savills has traded as anticipated with strong growth in Asia, a robust performance from the newly combined UK businesses and a continued reduction in losses in Continental Europe. Our US business has also shown improved performance in comparison with the same period last year and Cordea Savills, the Group's investment management business, has traded in line with our expectations. As previously indicated, we expect that our trading result to date will result in a stronger first half performance than in 2012 with the full year outlook in line with our expectations.
To date trading across the Asia Pacific region has remained strong with substantial improvements year on year. Looking forward, as anticipated, the residential markets in Hong Kong are being significantly affected by the latest round of Government control measures implemented in March with volumes falling by circa 30%. The doubling of stamp duty on commercial transactions in Hong Kong has also reduced the aggregate value of transactions since its implementation. We anticipate that improvements in trading in other parts of the region, particularly Australia and Japan will help to mitigate the financial impact of reduced transactional volumes in Hong Kong.
London's attractions as an investment location remain firmly established and indeed potentially enhanced by fiscal and other control measures implemented in other markets. In the UK commercial market Savills has continued to maintain a significant share of the Prime Central London investment and leasing markets, although the shortage of supply of investment stock has become apparent. The increasing interest of overseas investors in Prime Central London assets has resulted in more domestic investors looking to opportunities in the UK's principal regional cities. Whilst it is still too early to be definitive, if this trend continues, we expect to see some improvements in our regional UK business through the coming period.
The Prime Residential market in central London has continued to perform strongly with year on year increases in both volume and value. Outside London, although it is early in the selling season, we have seen some improvement in the volume of activity in the traditionally stronger regional markets evidenced by improved volumes of new stock, applicants and viewings.
Globally, our Consultancy business has experienced double digit revenue growth with particular strengths in Planning and Development consultancy. The Property Management business has continued to deliver a solid increase in revenue.
Following a year of strategic changes and operational developments undertaken in 2012, Cordea Savills is now focused on further growth initiatives in Europe and Asia.
For further information, contact:
Savills 020 7409 8934
Jeremy Helsby, Group Chief Executive
Simon Shaw, Group Chief Financial Officer
Tulchan Communications 020 7353 4200
Peter Hewer/Martha Walsh
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