Savills' full-year results to meet upper end of expectations

14th Nov 2013 08:37

Savills, the real estate services provider, reported a 'strong' period of trading since the start of July and said its overall underlying result for the year would be towards the upper end of its expectations. However, it also remained 'somewhat cautious' about the extent to which Hong Kong's market weakness will continue to be matched by relative out-performance elsewhere in the group through the final quarter. As expected, the group saw 'significant reduction' in transaction volumes in Hong Kong compared with the third quarter in 2012. Its Prime UK Residential and Commercial businesses continued to trade well, with increasing activity outside London, while its Investment Management, US and Continental European businesses performed in line with its expectations. The non-transactional businesses, Consultancy and Property Management, also continued to perform well, it said. The former continued to show strong growth in revenue and profit driven primarily by improved activity in the UK and Continental Europe, while Property Management continued to benefit from further Commercial contract wins and revenue growth in Residential Management. Looking ahead, and despite its concerns about Hong Kong's market weakness, the company said: "Given trading in the period to date, the improvements we have seen in a number of markets, and the quicker than expected pick up in the UK regions, we currently anticipate that our overall underlying result for the year will be towards the upper end of our previous expectations."NR