The economic headwinds caused by inflation and rising interest rates were only too real for Savills PLC (LSE:SVS), which saw its profits collapse by 72% in the first half.
For most, this would be seen as a failure. But for the international estate agency group, it was almost used as an object lesson in tactical flexibility.
"Savills has weathered both the inflationary cost conditions and reduced transaction volumes well, increasing market share and, supported by our strong balance sheet, continuing to undertake selective business development activities to further the group's long-term growth strategy," CEO Mark Ridley said.
Showing the operational gearing of the business, profits dropped by almost three-quarters to £16.3 million on just a 3% fall in revenues to just over £1bn in the six months ended 30 June 2023.
Looking ahead, Ridley added: "We are seeing some positive signs in markets such as the UK and continued strength in certain Asia Pacific markets including Japan; in Continental Europe and mainland China we now expect reduced market volumes to continue through much of the year.
"In many locations, we are carrying very strong capital transaction pipelines awaiting the market conditions for launch. In prolonged uncertain conditions, it remains challenging to predict accurately the timing of individual market recoveries."
The market gave its verdict by marking down the shares by 2.6% to 966p.