Savills FY19 Profit Rises, Lifts Dividend; Buys Macro Consultants In US

Savills plc. (SVS.L), a real estate advisor, reported Thursday that its fiscal 2019 profit before tax increased 6 percent to 115.6 million pounds from last year’s 109.4 million pounds.

Basic earnings per share increased 8 percent to 60.6 pence from 56.2 pence last year.

Underlying profit before tax was 143.4 million pounds, compared to last year’s 143.7 million pounds. Underlying basic earnings per share were 78.0 pence, compared to 77.8 pence a year ago.

Group revenue grew 10 percent to 1.93 billion pounds from 1.76 billion pounds a year ago, driven by strong performance in Less Transactional business lines.

Further, the company announced a final ordinary dividend of 12.05 pence, higher than last year’s 10.8 pence. This makes the ordinary dividend for the year of 17.0p, up from last year’s 15.6p.

In addition, a supplemental interim dividend of 15.0p, down from 15.6p last year, is declared, based upon the underlying performance of Transaction Advisory business.

The ordinary and supplemental interim dividends comprise an aggregate distribution for the year of 32.0p per share, representing an increase of 2.6 percent.

Looking ahead, Mark Ridley, Group Chief Executive, said, “While we continue to monitor the impact of global uncertainties on investor and occupier demand for real estate, we have made a good start to 2020 with the first two months outperforming the same period last year on all measures. As a result of the dynamic situation in respect of COVID-19 it is difficult accurately to predict its impact on our business for 2020 as a whole, although we do expect a greater weighting of activity to the second half of the year.”

Separately, Savills announced the acquisition of Macro Consultants LLC, a project management firm in North America. The acquisition completed on March 11.

The deal is part of the firm’s strategy of expanding the complementary real estate consultancy services offered by Savills US and its other businesses around the world.

Macro employs more than 90 staff located in offices across New York, Los Angeles, Washington D.C, Denver and Philadelphia.

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