Savills annual profit rises on strong US and UK performances, dividend hiked

19th Mar 2015 08:00

Strong performances in its UK and US business saw real estate provider Savills post higher annual pre-tax profit, on the back of an increase in revenue.The FTSE 250 group reported a 21% increase in pre-tax profit to £84.7m, as revenue rose 19% to £1.08bn driven by a 38% increase in transaction advisory revenue, which the company attributed to the performance of the Savills Studley business in the US, strong performances in Asia and the UK and recovery in some European markets.The company added that consultancy revenue increased 13% and property management revenue rose 3% on improved margins, boosted by record revenue across the UK business, thanks to increasing demand in the London market and a recovery in other regions.Group chief executive Jeremy Helsby said that while 2015 had started positively, Savills remained cautious as the uncertainty surrounding the UK General Election on May 7 was likely to lead to subdued growth in Britain.The company said it will hike its final dividend 3.57% to 7.25p, adding the total dividend payout for the year will be 23p per share, a 21% increase year-on-year, following a further 12p supplementary dividend the group will pay based on the underlying performance of its transaction advisory business.Meanwhile, the real estate provider added it had agreed a deal to acquire German investment management house SEB Asset Management AG for up to €21.5m (£15.4m) in cash. Following the deal, the business will be rebranded as Savills Investment Management.Savills shares were down 1.67% to 765.00p at 09:00 on Thursday.