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Savills FS results hit by property doldrums

Savills financial services arm was hit by the property market downturn and made a loss of £2.1m for the first half of this year.

It posted profits of £1m at the end of 2008. The financial services arm comprises brokerage Savills Private Finance and Savills Capital Advisers.

Savills’ fund management operations made a profit of £1.6m, down by 27 per cent from £2.2m six months ago.

Property and facilities management made a profit of £2.5m, down by 87 per cent from £19.2m at the end of 2008. The division now represents almost half the group’s revenues.

Chief executive Jeremy Helsby says: “These results demonstrate Savills’ resilience in some of the toughest trading conditions in decades. To generate a profit is testament to the diversification of our business and the quality and determination of our teams around the world.”

The group is on track to make at least £50m annualised cost savings by the end of the year.

He says: “Although there have been recent signs of improvement in some areas of UK residential and Asia-Pacific regions, property markets generally are still suffering from a lack of debt finance, shortage of quality product and concerns over the impact of recession upon occupiers. We will continue to adopt a cautious outlook as predicting the timing of sustainable improvement in our markets remains difficult.”


Flipping the figures

This has been really rather a remarkable summer, markets-wise. By the middle of last week, the FTSE 100 index was flirting with 5,000 – a level not seen since the dark days of last autumn. The recovery from lows of less than six months ago has been a staggering 40 per cent. In the US, it has been even greater. If this truly has been only a bear market rally, then you still would have been very wrong to ignore it.

Remove MPs’ long stop

I was interested in the decision by the Conservative Shadow Cabinet not to support a long stop on financial services business.


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