Savills (SVS) H1 2024 earnings summary

Executive summary

• Revenue rose 5.1% year-over-year to £1,063.2m, with underlying profit before tax up 30.1% to £21.2m, reflecting early market recovery and robust less transactional business performance.

• Net cash increased to £34.0m from £12.8m, and interim dividend per share grew to 7.1p.

• Growth was driven by improved global transactional advisory revenues (+9%) and resilient property and facilities management (+5%) and consultancy (+3%), while investment management revenue declined 10%.

• Business development included acquisitions in Switzerland, France, the UK, Malaysia, and expansion in the UAE and Australia.

• Less transactional, recurring revenue now forms two-thirds of total revenue, up 3% year-on-year.

Financial highlights

• Underlying basic EPS increased 31.5% to 12.1p; reported basic EPS up 74.3% to 6.1p.

• Underlying PBT margin improved to 2.0% from 1.6% year-over-year.

• Net cash position strengthened by 166% year-over-year to £34.0m.

• Total cash used in operating activities was £75.7m, down from £193.6m in H1 2023.

• Interim dividend: 7.1p per share, up from 6.9p.

Outlook and guidance

• Full-year expectations remain unchanged, with improved transaction pipelines and positioning for further recovery over the next 12–18 months.

• Continued investment in business growth and diversification, especially in Global Prime Residential services.

• Interest rate cuts by the Bank of England and ECB are expected to boost investor confidence, but overall capital markets recovery is delayed by ongoing uncertainty.

• Anticipated further interest rate reductions in H2 may increase buyer conviction and market liquidity.

• Balance sheet strength supports ongoing strategic growth.