Savills (SVS) H2 2024 earnings summary

Executive summary

• Annual revenue grew 7.4% (10% in constant currency) to £2.404 billion, with underlying profit up 37.6% to £130.4 million, reflecting strong operational leverage despite challenging macroeconomic conditions.

• Underlying earnings per share rose 20% to 66.2p; net cash increased 12% to £176.3 million.

• Dividend per share increased 32% to £0.32, reflecting strong cash generation and performance.

• Growth was primarily organic, with less transactional revenue now exceeding £1.5 billion per annum and transactional revenues recovering 13%.

• Investment Management revenue declined 11% due to lower performance and transaction fees; AUM slightly reduced to £21.7 billion.

Financial highlights

• Revenue: £2,404.0m (+7.4% YoY); UPBT: £130.4m (+37.6% YoY); UPBT margin: 5.4% (+120bps YoY).

• Underlying basic EPS: 66.2p (+20.1% YoY); basic EPS: 39.4p (+31.3% YoY).

• Net cash at year-end: £176.3 million (+12.2% YoY); operating cash flow improved to nearly £118 million from a negative £5.5 million the previous year.

• Dividend per share: £0.32, up 32%, with supplemental dividend up 330% to 8.6p.

• Restructuring provisions totaled £17.2 million in 2024, with an additional £3.5 million expected in Q1 2025, mainly in Germany and mainland China.

Outlook and guidance

• Most markets are in recovery as 2025 begins, but ongoing geopolitical and economic uncertainty continues to affect sentiment.

• Improved transactional revenues anticipated as market recalibration continues, with strong pipelines across main markets.

• Management expects mid to high single-digit margins over the next five years, with potential for double digits in strong years.

• Focus on operational leverage, balance sheet strength, and pipeline of growth opportunities.