Savills profit drops but it pays dividend to beat 50% tax

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Reporting a 24% fall in annual profits to £25.2 million, chief executive Jeremy Helsby said: "We maintain a cautious stance and anticipate our overall performance in 2010 will be similar to that of 2009."

Savills shares fell 15.1p to 353p, but shareholders were given reason to cheer as Savills opted to pay a "second interim" dividend of 6p a share on 1 April rather than a "final dividend" later in the year.

It means shareholders will pay 40% tax on the windfall rather than the new top rate of 50% which comes into force on 6 April.

Helsby said business picked up in the second half of last year as the industry recovered from recession.

He said the UK residential arm, which sells multi-million pound homes in London and the south-east, saw prices rise by 9% over the year.

More than 60% of homes sold by Savills were bought by foreigners taking advantage of low prices and the weak pound.

But Helsby said: "It remains to be seen how the market will perform in 2010 with significant personal tax rises and a General Election in prospect during the spring selling season."