Savills reveal FY 2010 revenues up 21% to £677 million powered by it's Asia Pacific business

Savills reveal FY 2010 revenues up 21% to 677 million powered by it's Asia Pacific business

Savills in it's annual results for 2010 today revealed that for the first time revenues from the UK market represented less than half of the total, coming in at 49% (2009 51%) as it reported an 88% increase in underlying pre-tax profits to 47.3 million on revenues up 21% to 677 million.

Savills growth is being powered by the Asia Pacific markets where revenues for 2010 were up from 210 million in 2009 to 279.7 million. But the firm warned of uncertainty about the market impact from Japan's worsening crisis. Continental Europe produced revenues of 60.9 million and the USA 3.1 million, both of which were exceeded by their costs and therefore produced pre-tax losses of 9.8 million, which were reduced from the previous year.

Revenue from UK Commercial transactions increased by approximately 35% to 48.2 million (2009: 35.7 million). Trading conditions continued to improve for much of 2010. During 2010, the relative lack of supply of prime London assets catalysed renewed interest in high end regional retail assets. At the lower lot sizes, largely equity backed investors also focused on well let regional office, hotel and smaller retail assets.

There was a greater general willingness from the banks and other owners to release assets into a strengthening market. The regional Occupational business in the UK improved over the year as a whole as rents halted their declining trend of the past two years. The London City and West End offices market continued to improve with significant take up during the year. Rental values, particularly in London continued to strengthen and the relative lack of developed supply led to a number of mothballed developments being recommenced.

Jeremy Helsby, Chief Executive of Savills Plc, said:

"I am pleased to report a strong performance by Savills, driven by a resurgence of investment activity in prime global markets, most notably in London and a number of Asian capitals. It was also encouraging to see conditions improve in the US and the key French and German markets, although the trend was not consistent across all of Continental Europe.

We are well placed, thanks to our core strengths in both the Commercial and Prime Residential sectors, to meet the developing needs of our worldwide client base.

Our confidence in the longer term potential of our business is reflected in the substantial increase in annual dividend and our new dividend policy announced today."

Savills has shed it's debt burden over the past years, increasing it's net cash from 66.3 million last year to 86.9 million, and has even reduced it's contingency facilities, so in this respect is much better placed than some of it's peers. The company proposed a final dividend of 6 pence and a supplement of 4 pence, which brings the total dividend for the year to 13 pence, compared with 9 pence the previous year.

Shares in Savills opened this morning up 5.8p on these results at 365.8p, which values the business at 493 million.

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