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Wipe-out at Savills as profits collapse
27.08.09
The recovery in the London housing market was not enough to stop a profits collapse at Savills.
Profits fell from £33.4 million for the first six months of last year to just £100,000 this time around. Revenues were down 11% to £247.6 million.
Savills also halved its dividend from 6p a share to 3p a share as it continued to feel the impact of recession and the slump in the property market.
The residential arm accounts for only 11% of revenues at the international property advisor and the improved performance at its UK estate agents was not matched in other areas such as commercial property where fees for deals tumbled 33%.
“Property markets generally are still suffering from a lack of debt finance, shortage of quality product and concerns over the impact of recession upon occupiers,” said chief executive Jeremy Helsby. “Against this backdrop we continue to adopt a cautious outlook.”
