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The Markets
by Proactive
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The Markets
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Proactive UK has moved.
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Finance

Savills shares slip as political uncertainty hits first-half profit

Savills left its guidance for the year unchanged despite a challenging market

Estate agent Savills PLC (LON:SVS) posted a 7% drop in profit for the first half as political uncertainty in the UK and Hong Kong dragged on transaction volumes.

The company said profit before tax fell to £24.7mln in the six months to 30 June from £26.7mln a year ago.

Revenue, however, increased 16% to £847.0mln, driven by growth in North America.

"In many markets, particularly the UK and Hong Kong, political and economic uncertainty has considerably reduced the volume of real estate trading activity in recent months, although occupier demand remains robust,” said chief executive Mark Ridley.

“Underlying demand for the secure income qualities of real estate remains high, but these macro uncertainties weigh on investor sentiment and make predictions in respect of near term market activity difficult to determine with accuracy.

“Continued investor demand, restricted supply and expectations of continued low interest rates suggest that, if political clarity emerges, the medium and long term dynamics of the real estate markets in which we operate remain positive.”

Savills left its guidance for the year unchanged despite a challenging market.

The interim dividend was lifted by 3% to 4.95p each.

Shares dropped 2% to 928p in morning trading.

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