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Savills reports profit rise but warns of heightened market uncertainty in 2018

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  • 15/03/2018
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Savills reports profit rise but warns of heightened market uncertainty in 2018
Estate agent Savills cautioned that property markets could slow in 2018 in its annual results, amid a backdrop of rising interest rates and geopolitical risks.

 

The group’s profits before tax increased by 13% to £112.4m in 2017, as revenues also increased to £1.6bn.

The UK residential business put in a resilient performance, as conditions were “challenging” in a number of markets, Savills said.

It also operates in Europe, Asia and the United States.

However, Savills reported a robust start to 2018 with business carried over from last year in many markets.

Jeremy Helsby, group chief executive, said: “Savills has delivered another strong performance in 2017.

“Revenue and profits grew in each of our global transaction advisory, consultancy and property management businesses despite challenging conditions in a number of markets.

“The strength of our business in key transactional markets across the globe, including a highly resilient performance in our UK residential business, were key to this result.

“We have made a solid start to 2018 with a pipeline of business carried over from last year in many markets, although this is against the backdrop of heightened market uncertainty, geopolitical risks and rising interest rates.

“We anticipate a tempering of the strong transaction volumes of recent times in some markets; however, at this early stage in the year our expectations for 2018 remain unchanged.”

Helsby said the firm will this year focus on service delivery, complementary acquisitions and new team hires.

Estate agents have reported mixed results for 2017, as Countrywide revealed a £200m loss and Foxtons also announced a sharp drop in profits.

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