Results show record revenue and profits for Savills
Savills plc today announces its preliminary results for the year ended 31 December 2021.
The Group’s revenue went up to 23% to £2.15 billion this year compared to £1.74 billion in 2020. The underlying profit before tax also went up by 107%, going from £96.6 million (2020) to £200.3 million.
Savills’ reported profit before tax increased by 120% from £83.2 million to £183.1 million. Additionally, their reported basic earnings per share (‘EPS’) rose to 104.9p, a 114% increase from 49.0p in 2020.
The Group has an aggregate dividend of 55.4p that will need to be paid in May 2022, including a one-time special dividend of 27.05p.
One of the key financial highlights for Savills is that their net cash went from £177.7 million to £340.7 million at the end of 2021.
In their key operational highlights, Savills stated that 2020’s strategy and high levels of client service positioned the Group well for the progressive recovery in 2021.
The Group’s transactional Advisory revenues were up by 34% in recovering markets and their commercial transaction revenue increased by 35% overall with particularly strong growth in the UK and Asia Pacific.
In the financial year ending December 2021, there were less transactional businesses, revenue was up 17%, property and facilities management revenue went up by 9% and consultancy revenue went up by 24%.
Overall, the Group’s Investment Management revenue increased by 30%, and assets under management (‘AUM’) went up by 22% settling at €25.8 billion (£21.6 billion).
The strategic partnership between Savills Investment Management and Samsung Life Insurance (‘SLI’) was brought about to accelerate the future growth of the business.
Savills has also continued to invest in people, technology leadership and innovation in sustainability - this was evident through the launch of their Earth consultancy services.
Commenting on the latest preliminary results, Mark Ridley, Group Chief Executive, said: “Savills delivered a record performance in 2021 reflecting the significant recovery in both residential and commercial transactional markets supported by growth in our less transactional Investment Management, Property Management and Consultancy businesses.
The war in Ukraine has shocked the world and, in response, Savills is providing support both through international charities and via our Polish operation, focussing particularly on Ukrainian refugees. Our thoughts are with everyone affected in the region and we can only hope for a peaceful resolution as quickly as possible.
At this stage it is too early to predict the economic, including longer term inflationary, impact of the Ukrainian crisis on the world’s real estate markets. Subject to this key uncertainty, we would anticipate real estate transaction volumes and discretionary spend to normalise in the year ahead, alongside the continued recovery of global markets as they emerge from pandemic-related disruptions.
The Group has started 2022 in line with our expectations and the strength of our balance sheet supports our growth strategy to pursue further complementary acquisitions and significant recruitment across our global business.”
