Savills adopts cautious stance as profits jump

Upmarket property adviser Savills has posted a leap in profits, but also flagged a cooling UK residential market and cautioned over Brexit uncertainty.

Results yesterday revealed a 27 per cent rise in pre-tax profits to £32.4 million for the six months to 30 June, aided by a strong performance in Asia.

Group revenues jumped 15 per cent to £714.4m while the interim dividend was raised 6 per cent to 4.65p per share.

UK commercial transaction fee income rose 23 per cent to £39.4m, despite “additional uncertainty caused by the unexpected general election”. However, fee income at the UK residential business fell 4 per cent to £55m as fewer house sales were completed.

The firm, headed by chief executive Jeremy Helsby, warned: “Increased levels of political and economic uncertainty created by the general election and the ongoing negotiations to leave the EU make it difficult to predict market volumes for the rest of the year.”