On Thursday 28th August, Savills plc announced its half year results for the six months ended 30 June 2008. Group revenue was 278.1m GBP (55.7bn JPY) and Group profit before tax increased 1% to 33.4m GBP (6.7bn JPY). Weaker market conditions in the UK and Europe negatively impacted the Groups underlying profit before tax. However, in contrast, Savills Asian business experienced a particularly strong six months showing a 40% increase in profits.
Whilst the Group acknowledged that the credit squeeze and economic uncertainty have started to have an impact on the Asia Pacific real estate markets, it also noted that Asia generally appears to be more resilient than either the US or Europe. International real estate funds remain active in the region and Savills continues to secure instructions.
Peter Smith, Chairman of Savills plc, comments:
‘2008 continues to be a challenging year for the real estate market worldwide. However we have delivered a robust set of figures as a direct result of creating a more balanced business. Our Transactional businesses in Asia continued to deliver strong performance notwithstanding the more challenging market conditions. We believe the broad range of services we provide, our high quality staff and our geographical spread will ensure that Savills will continue to compete strongly in our markets and seize growth opportunities as they arise.’