Financial Highlights

Underlying Results:

• Underlying Group profit before tax up 30% to £57.2m (2004 - £43.9m). Underlying profit is calculated by adjusting reported profit before tax to deduct profits on disposals of £0.4m (2004 - £11.2m) and share based payment adjustment of £1.9m (2004 - £3.9m) and add back amortisation of intangibles and impairment of goodwill of £0.9m (2004 - £0.6m).
• Underlying revenue (excluding trading property sales) up 18 per cent to £373.9m (2004 - £316.6m).
• Underlying basic earnings per share (based upon underlying group profit) up 21 per centto 66.5p (2004 - 55.0p).

Reported Results:

• Revenue up 14 per cent to £373.9m (2004 - £328.0m).
• Group profit before taxation of £58.6m (2004 - £58.3m).
• Basic earnings per share of 67.2p (2004 - 72.7p).
• Proposed final dividend up 28per centto 16p per share (2004 - 12.5p).

Peter Smith, Chairman of Savills plc, commented:

“Savills has had an excellent year and I am delighted to report a strong set of results following good performances from all of our operating businesses. Confidence in investment markets remains strong and the residential prime markets are resilient. We have enjoyed a positive start to the year and with the
increasing range of services we offer and geographical regions in which we operate, we are confident that the Group is well placed to have a satisfactory
2006.”

CHAIRMAN’S STATEMENT

RESULTS
Savills has had an excellent year and I am delighted to report a strong set of results following good performances from all of our operating businesses. The
results for the year ended 31 December 2005 are reported in accordance with International Financial Reporting Standards (IFRS).

Underlying Results

• Underlying Group profit before tax up 30per cent to £57.2m (2004 - £43.9m).
• Underlying profit is calculated by adjusting reported profit before tax to deduct profits on disposals of £0.4m (2004 - £11.2m) and share based payment adjustment of £1.9m (2004 - £3.9m) and add back amortisation of intangibles and impairment of goodwill of £0.9m (2004 - £0.6m).
• Underlying revenue (excluding trading property sales) was up 18 per centto £373.9m (2004 - £316.6m).
• Underlying basic earnings per share (based upon underlying group profit) up 21percentto 66.5p (2004 - 55.0p).

Reported Results

• Revenue was up 14 per centto £373.9m (2004 - £328.0m).
• Group profit before taxation was £58.6m (2004 - £58.3m).
• Basic earnings per share were 67.2p (2004 - 72.7p).
• Proposed final dividend is up 28per centto 16p per share (2004 - 12.5p).
• Shareholders’ funds increased to £167.7m (2004 - £103.5m).
• Cash and cash equivalents increased to £99.9m (2004 - £89.9m).

DIVIDENDS
In the five years to 31 December 2005 reported earnings increased by an average of 17% per annum and dividends by an average of 22 per cent per annum. This year the Board has recommended an increase in dividend of 28 per centwith a final dividend of 16p per share to those shareholders on the register on 18 April 2006, payable on 18 May 2006. This gives a total ordinary dividend for the year ended 31 December 2005 of 24p (declared in 2004 - 18.5p), in line with our current progressive dividend policy.

KEY HIGHLIGHTS
This year Savills continued with the selective expansion of its business in the UK, continental Europe and specifically in Asia, where we have now established a market-leading presence in Korea.

In the UK, Savills strengthened its commercial retail offering in Bristol and Manchester and expanded its expertise in the London West End industrial services sector. New offices were also opened in Horsham, Huntingdon, Islington, Tunbridge Wells and Weybridge, thereby expanding our presence in key prime locations.

In continental Europe, as part of our continued strategy to grow our business in key commercial centres, we acquired AWON Gestion, a Paris based property management business and also acquired 51per centof Factor Immobilien Management GmbH in Berlin. In both Italy and Sweden we now offer valuation services.

Since the year-end we have opened a new office in Munich.

In Asia, the investment and transactional markets in Hong Kong remained strong. We strengthened our valuation and professional services offering in Hong Kong and created Savills Professional Services, which includes a newly formed real estate investment trust (REIT) team. The property management team in Hong Kong acquired Showcase, a business specialising in exhibition and marketing services to office and retail landlords. Savills now provides the full complement of agency, property management and professional services in Shanghai and Beijing as well as in Hong Kong. During the year a new office was added in Macau. As announced on 19 December 2005 Savills further expanded its operations in South Korea with the acquisition of a 50 per centstake in Korean Asset Advisors and BHP Korea which provide property, asset management and brokerage services in Korea from their office in Seoul.

Our fund management arm, Cordea Savills has also had an excellent year, offering an increased range of products to both institutional and retail clients in the UK and across Europe. Cordea Savills also increased funds under management, growing the Charities Property Fund and maintaining its position as the leading property fund for UK charities.

Cordea Savills Wealth Management established its brand and launched three products: DIVERSE, QPC and Serviced Land Fund No 1.

During the year Trammell Crow Company (TCC) exercised an option to acquire shares under a Deed of Option dated 9 May 2000. On 29 April 2005, together with 1,677,970 ordinary shares acquired in the market, 5,243,229 ordinary shares were allotted to TCC. TCC’s total holding is therefore 19.43 per cent.

As announced on 8 December 2005, Daily Mail and General Trust plc made an offer for Fastcrop plc, a public company in which Savills had a 13.72 per centshareholding through its wholly owned subsidiary Savills (L&P) Limited.

Fastcrop plc is the owner and operator of the Primelocation website. The proceeds on disposal of our shareholding amounted to £6.2m and any resultant profit on disposal will be recognised in the 2006 financial year.

SHARE BUYBACK PROGRAMME AND ANNUAL GENERAL MEETING
At the last Annual General Meeting shareholders gave authority for a limited purchase of Savills shares for cancellation of up to 5% of the issued share capital. During the year ended 31 December 2005, 100,000 shares (0.15 per cent) were repurchased for cancellation under this programme. The Company may make further purchases of shares under this authority in the open period up to the Annual General Meeting to be held on 10 May 2006.

This programme has proved to be particularly earnings enhancing over the past couple of years. Shareholders will again this year be asked to consider a resolution to approve the re-purchase of shares. This is outlined in the Notice of Annual General Meeting which will accompany the Report and Accounts for the year ended 31 December 2005 and which will be distributed to shareholders at the end of March 2006.

At the Annual General Meeting due to be held on 10 May 2006, it is the Board’s intention to make a recommendation to shareholders that the share capital of Savills be sub-divided so that each shareholder will receive two shares for every one share held. Subject to the satisfaction of any relevant regulatory requirements, further details of the proposed share split will accompany the Notice of Annual General Meeting which, together with the Report and Accounts for the year ended 31 December 2005, will be distributed to shareholders at the end of March 2006.

BOARD AND STAFF
There have been no changes to the composition of the Board this year. As noted in our last Report and Accounts, with effect from 31 March 2005 Robert McKellar transferred to Hong Kong to take up the role of Chief Executive - Asia Pacific. Robert McKellar’s Group financial responsibilities have principally been assumed by Danny O’Donnell, the Group Financial Controller.

Savills’ continued development and growth is a result of the committed and dedicated efforts of our talented staff whose continued ability to provide a professional service to our clients is the basis for the excellent results achieved in 2005; I thank them all for their contribution. Our reward system is an important mechanism in providing a balance between the interests of staff and shareholders.

OUTLOOK
Confidence in investment markets remains strong and the residential prime markets are resilient. We have enjoyed a positive start to the year and with the increasing range of services we offer and geographical regions in which we operate, we are confident that the Group is well placed to have a satisfactory 2006.