Savills plc. Results for year ended 31 December March 2014

Transcription

1 Savills plc Results for year ended 31 December March 2014

2 Disclaimer: Forward-looking statements These slides contain certain forward-looking statements including the Group s financial condition, results of operations and business, and management s strategy, plans and objectives for the Group. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the Group s control, are difficult to predict and could cause actual results to differ materially from those expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that the Group operates in a highly competitive environment. All forward-looking statements in these slides are based on information known to the Group on the date hereof. The Group undertakes no obligation publically to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

3 Results 1 Introduction and Highlights 2 Financial Review 3 Business Review 4 Management Focus 5 Outlook

4 Highlights Revenue up 12% to 904.8m (2012: 806.4m) Underlying PBT up 28% to 75.2m (2012: 58.6m restated for IAS 19) Profit before tax up 35% to 70.1m (2012: 52.0m restated for IAS 19) Underlying basic EPS up 27% to 43.1p (2012: 33.9p restated for IAS 19) Total dividend for the year up 19% to 19.0p per share (2012: 16.0p) Net cash at the year-end of 112.4m (2012: 91.6m)

5 Financial Review

6 Summary Underlying Results Year ended December ( millions) % chg Revenue % Underlying profit before tax % Underlying PBT margin 8.3% 7.3% Underlying basic earnings per share 43.1p 33.9p 27.1% Dividend per share 19.0p 16.0p 18.8% Net cash % Net assets %

7 Underlying PBT Reconciliation Year ended December ( millions) Reported profit before tax Intangible asset/investment impairments/ amortisation Share-based payment adjustment (2.5) 0.7 Restructuring costs Loss/(profit) on disposal of available-for-sale investments 0.3 (1.7) Underlying PBT

8 Global Revenue and Underlying PBT Year ended December Revenue UPBT ( millions) % chg % chg Transaction Advisory % % Property Management % (1.7)% Consultancy % % Investment Management % (19.4)% Unallocated / other n/a (10.1) (8.7) n/a Total % % UPBT margin 8.3% 7.3%

9 Revenue and Underlying Profit by Region Year ended December Revenue UPBT ( millions) % chg % chg UK % % Asia Pacific % % Europe % (3.9) (7.0) 44.3% United States % (1.6) (2.1) 23.8% Investment Management % (19.4)% Unallocated / other n/a (10.1) (8.7) n/a Total % %

10 Transaction Advisory Business Year ended December Revenue UPBT ( millions) % chg % chg Commercial Transactions - Asia Pacific % % - UK % % - Europe % (3.0) (6.0) 50.0% - United States % (1.6) (2.1) 23.8% Total Commercial Transactions % % Residential Transactions - UK % % - Asia Pacific % % Total Residential Transactions % % Total % % UPBT margin 13.2% 10.3%

11 Non-transactional Business Year ended December Revenue UPBT ( millions) % chg % chg Property management - Asia Pacific % % - UK % % - Europe (2.1)% (2.3) (0.5) n/a Total Property management % (1.7)% Consultancy - UK % % - Asia Pacific (1.1)% (34.5)% - Europe % 1.4 (0.5) n/a Total Consultancy % % Investment Management % (19.4)% Total % % UPBT margin 7.0% 7.2%

12 Business Review Service Lines

13 Commercial Transaction Advisory Year ended December Revenue UPBT ( millions) % chg % chg Commercial Transactions - Asia Pacific % % - UK % % - Europe % (3.0) (6.0) 50.0% - United States % (1.6) (2.1) 23.8% Total % % UPBT margin 10.3% 6.7% High growth in revenues and profits in Australia, Japan and Korea Lower volumes in Hong Kong, impacted by higher taxes on commercial investments London office market strong, Regional UK recovery underway but stock availability is a challenge Continued recovery in Europe, with growth in Ireland, Germany, Spain, Sweden and Poland Improved US position with good pipeline for 2014

14 Residential Transaction Advisory Year ended December Revenue UPBT ( millions) % chg % chg Residential Transactions - UK % % - Asia Pacific % % Total % % UPBT margin 17.7% 16.3% Trading volumes up 8% year on year in the UK prime market (13% London; 5% Country) UK and Western European Nationals in Prime London represent 79% of buyers (2012: 77%) London office openings performing to plan; more lined up for 2014 Growth in Australia and China more than offsetting lower volumes in Hong Kong (intra region x-border)

15 Property Management Year ended December Revenue UPBT ( millions) % chg % chg Property Management - Asia Pacific % % - UK % % - Europe (2.1)% (2.3) (0.5) (360.0)% Total % (1.7)% UPBT margin 5.3% 6.0% Revenue up by 22% in mainland China, with profits up 19%; Hong Kong growing Asia Pacific region now manages 1.8bn sq ft (2012: 1.6bn sq ft) In the UK, the Residential and Rural Estate Management businesses increased revenues by 12% Short term impact of Residential Property Management expansion on UK profits Continental Europe profits impacted by loss of contract in Sweden and Poland team hire

16 Consultancy Year ended December Revenue UPBT ( millions) % chg % chg Consultancy - UK % % - Asia Pacific (1.1)% (34.5)% - Europe % 1.4 (0.5) 380.0% Total % % UPBT margin 9.2% 8.1% Strong performance in the UK in Valuation, Planning, Development services and Rural Energy In Asia Pacific growth in Mainland China, Japan and Singapore offset by reductions in Hong Kong and Korea In Europe growth mainly from Germany, Ireland, Sweden and France

17 Investment Management Year ended December Revenue UPBT ( millions) % chg % chg Investment Management % (19.4)% UPBT margin 11.2% 15.3% Assets under management grew by 17% to 4.2bn (2012: 3.6bn) Result impacted by restructuring costs in the UK, acquisition fees (Japan) and Investment costs in new funds 1bn capital raised during the year, with significant mandate wins

18 Management Focus

19 Management Focus Continued development of cross border Investment Advisory activity Expand International Prime Residential network Enhancement of Occupier Services business Continued focus on building Investment Management Grow US operation

20 Summary and Outlook

21 Summary and Outlook Strong performance in 2013 Solid start to 2014 in line with our expectations Looking to improve performance further in Europe and US in 2014 Well positioned with clear strategy for growth

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