Savills posts 16% rise in pre-tax profit in 2015

International property adviser Savills said on Thursday its pre-tax profits came to £98.6 mln (€127 mln) in 2015, up 16% from £84.7 mln the year before.

Group revenue surged 19% to £1.28 bn, from £1.07 bn in 2014 while earnings per share grew 14% to 63.2p from 55.2p in 2014.

'Overall in 2015, Savills delivered a record performance across the group,' Jeremy Helsby, Group Chief Executive. 'In the UK the strength of our position in the commercial market offset market weakness in the residential sector. The Continental European business continued to build profitability and Savills Investment Management substantially enhanced its position with the acquisition of SEB Asset Management.'

The company is proposing a dividend of 22p per share, taking the total dividend for the year up 13% to 26p per share.

Transaction advisory revenues were up 25% in 2015, driven by the contribution from Savills Studley in the US, continued recovery in Continental European markets, market share gains in Asia and a strong performance in the UK.

Further growth resulted from non-transactional services with consultancy revenue up 6% and property management revenue up 15% over the year, largely thanks to the UK acquisition of Smiths Gore.

Savills Investment Management more than doubled profits and assets under management with the acquisition of Germany's SEB Asset Management.

Looking forward at 2016, Helsby said the group expects the UK residential and commercial investment markets to be subdued, for the former, as Stamp Duty reforms take effect and, more generally, in the run up to the EU referendum in June.

However, he added, the strength of the firm's enlarged US operation, the increased size of the investment management activities, and the breadth of the UK business together with further improvement in Continental Europe, should ensure a positive year for the Group in 2016 as well.