Savills plc Results for the six months to 30 June 2015 6 August - - PowerPoint PPT Presentation

▶
savills plc
SMART_READER_LITE
LIVE PREVIEW

Savills plc Results for the six months to 30 June 2015 6 August - - PowerPoint PPT Presentation

Oct 19, 2022 357 likes •639 views

Savills plc Results for the six months to 30 June 2015 6 August 2015 1 Disclaimer: Forward-looking statements These slides contain certain forward- looking statements including the Groups financial condition, results of operations and

slide-1
SLIDE 1

Savills plc

Results for the six months to 30 June 2015 6 August 2015

1

slide-2
SLIDE 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

  • bjectives 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

  • n 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

  • therwise.

2

slide-3
SLIDE 3

Results

1 2 3 4 5

Introduction & Highlights Financial Review Business Review Management Focus Summary & Outlook

3

slide-4
SLIDE 4

Group underlying profit before tax up 28% (24% in constant currency) to £38.4m (H1 2014: £30.1m)

Highlights

4

Group revenue up 27% (25% in constant currency) to £547.0m (H1 2014: £430.8m) US revenues up substantially on full period effect of Savills Studley, with organic revenue growth of 24%. Several bolt-on acquisitions completed in the period Transaction Advisory revenue growth of 55% as strong UK Commercial, Asia Pacific and US performances offset weaker UK Residential activity Savills Investment Management revenue growth of 10% (14% in constant currency). Assets under Management increased 25% to €7.9bn (H1 2014: €6.3bn) and SEB acquisition expected to close imminently

slide-5
SLIDE 5

Business Development

5

slide-6
SLIDE 6

Financial Review

6

slide-7
SLIDE 7

Summary Underlying Results

6 months ended June (£ millions) 2015 2014 % chg Revenue 547.0 430.8 27.0% Underlying profit before tax 38.4 30.1 27.6% Underlying PBT margin 7.0% 7.0%

  • Underlying basic earnings per share

20.0p 17.2p 16.3% Interim Dividend 4.0p 3.75p 6.7% Net (debt) / cash (24.3) 2.5 n/a

7

slide-8
SLIDE 8

Underlying PBT Reconciliation

6 months ended June (£ millions) 2015 2014 Reported profit before tax 26.4 24.7 Intangible assets amortisation 1.5 1.1 Share-based payment adjustment (0.6) (0.4) Restructuring costs 0.5 0.5 Profit on disposal of available-for-sale investments

  • (2.2)

Acquisition related costs 10.6 6.4 Underlying profit before tax 38.4 30.1

8

slide-9
SLIDE 9

Global Revenue and Underlying PBT

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Transaction Advisory 258.2 166.1 55.4% 24.3 16.3 49.1% Property Management 178.4 158.5 12.6% 7.7 7.6 1.3% Consultancy 96.4 93.5 3.1% 7.8 8.4 (7.1)% Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3% Other

  • (3.9)

(3.8) (2.6)% Total 547.0 430.8 27.0% 38.4 30.1 27.6% UPBT margin 7.0% 7.0%

9

slide-10
SLIDE 10

Revenue and Underlying Profit by Region

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg UK 222.7 209.6 6.3% 20.7 20.8 (0.5)% Asia Pacific 184.9 158.1 17.0% 12.8 12.1 5.8% Europe 38.7 39.3 (1.5)% (1.2) 0.1 n/a United States 86.7 11.1 681.1% 7.5 (0.7) n/a Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3% Other

  • (3.9)

(3.8) (2.6)% Total 547.0 430.8 27.0% 38.4 30.1 27.6%

10

slide-11
SLIDE 11

Constant Currency Equivalent

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg UK 222.7 209.6 6.3% 20.7 20.8 (0.5)% Asia Pacific 176.3 158.1 11.5% 12.1 12.1

  • Europe

43.6 39.3 10.9% (1.0) 0.1 n/a United States 79.4 11.1 615.3% 6.7 (0.7) n/a Investment Management 14.5 12.7 14.2% 2.8 1.6 75.0% Other

  • n/a

(3.9) (3.8) (2.6)% Total 536.5 430.8 24.5% 37.4 30.1 24.3%

11

slide-12
SLIDE 12

Transaction Advisory Business

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Commercial Transactions

  • Asia Pacific

46.1 35.7 29.1% 4.5 3.5 28.6%

  • UK

41.9 30.3 38.3% 5.9 2.5 136.0%

  • Europe

19.0 20.5 (7.3)% (0.1) 1.1 n/a

  • United States

86.7 11.1 681.1% 7.5 (0.7) n/a Total Commercial Transactions 193.7 97.6 98.5% 17.8 6.4 178.1% Residential Transactions

  • UK

51.8 59.6 (13.1)% 5.4 8.4 (35.7)%

  • Asia Pacific

12.7 8.9 42.7% 1.1 1.5 (26.7)% Total Residential Transactions 64.5 68.5 (5.8)% 6.5 9.9 (34.3)% Total 258.2 166.1 55.4% 24.3 16.3 49.1% UPBT margin 9.4% 9.8%

12

slide-13
SLIDE 13

Non-Transactional Business

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Property Management

  • Asia Pacific

111.1 99.1 12.1% 6.2 5.7 8.8%

  • UK

54.4 47.9 13.6% 3.3 3.6 (8.3)%

  • Europe

12.9 11.5 12.2% (1.8) (1.7) (5.9)% Total Property Management 178.4 158.5 12.6% 7.7 7.6 1.3% Consultancy

  • UK

74.6 71.8 3.9% 6.1 6.3 (3.2)%

  • Asia Pacific

15.0 14.4 4.2% 1.0 1.4 (28.6)%

  • Europe

6.8 7.3 (6.8)% 0.7 0.7

  • Total Consultancy

96.4 93.5 3.1% 7.8 8.4 (7.1)% Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3% Total 288.8 264.7 9.1% 18.0 17.6 2.3% UPBT margin 6.2% 6.6%

13

slide-14
SLIDE 14

Business Review Service Lines

14

slide-15
SLIDE 15

Commercial Transaction Advisory

  • Asia Pacific – substantial market share growth in Hong Kong
  • UK – Central London investment and leasing markets remain strong. Continued strength in UK regional

investment

  • Europe – constant currency growth in revenues of 4%, driven primarily by Germany
  • US – like-for-like revenue growth of 24%. Improved position in tenant rep and occupier services

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Commercial Transactions

  • Asia Pacific

46.1 35.7 29.1% 4.5 3.5 28.6%

  • UK

41.9 30.3 38.3% 5.9 2.5 136.0%

  • Europe

19.0 20.5 (7.3)% (0.1) 1.1 n/a

  • United States

86.7 11.1 681.1% 7.5 (0.7) n/a Total Commercial Transactions 193.7 97.6 98.5% 17.8 6.4 178.1% UPBT margin 9.2% 6.6%

15

slide-16
SLIDE 16

Residential Transaction Advisory

  • UK – revenues down 13% reflecting a cautious market in the run-up to the General Election
  • Improving positioning in “Core London” market
  • Signs of strengthening UK market post Election
  • Asia Pacific – strong growth in revenues, mainly in Australia. Singapore remains very weak

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Residential Transactions

  • UK

51.8 59.6 (13.1)% 5.4 8.4 (35.7)%

  • Asia Pacific

12.7 8.9 42.7% 1.1 1.5 (26.7)% Total Residential Transactions 64.5 68.5 (5.8)% 6.5 9.9 (34.3)% UPBT margin 10.1% 14.5%

16

slide-17
SLIDE 17

Property Management

  • Area under management increased by 3% to 2.03bn sq ft (H1 2014: 1.97bn sq ft)
  • Asia Pacific – growth in Hong Kong and Singapore. Staff cost pressure in China
  • UK Commercial – new commercial management contracts and growth in rural (Smiths Gore acquisition in May)
  • UK Lettings – impacted by pre-election caution and office openings. Good pipeline leading into H2
  • Europe – Restructuring costs affecting profits in Sweden and Ireland

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Property Management

  • Asia Pacific

111.1 99.1 12.1% 6.2 5.7 8.8%

  • UK

54.4 47.9 13.6% 3.3 3.6 (8.3)%

  • Europe

12.9 11.5 12.2% (1.8) (1.7) (5.9)% Total Property Management 178.4 158.5 12.6% 7.7 7.6 1.3% UPBT margin 4.3% 4.8%

17

slide-18
SLIDE 18

Consultancy

  • UK – strong performances in Building, Planning and Housing & Healthcare, offset by short-term fluctuations

in Development and Valuations and expansion costs. Good pipeline leading into H2

  • Asia Pacific – strong performance in Hong Kong, growth in Vietnam and Japan offset by weaker demand

from developers in China and restructuring in Australia

  • Europe – revenue up 6% in constant currency reflecting growth in Germany and Ireland

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Consultancy

  • UK

74.6 71.8 3.9% 6.1 6.3 (3.2)%

  • Asia Pacific

15.0 14.4 4.2% 1.0 1.4 (28.6)%

  • Europe

6.8 7.3 (6.8)% 0.7 0.7

  • Total Consultancy

96.4 93.5 3.1% 7.8 8.4 (7.1)% UPBT margin 8.1% 9.0%

18

slide-19
SLIDE 19

Investment Management

  • Fee income up 10% (14% in constant currency)
  • Assets under management increased by 25% to €7.9bn (H1 2014: €6.3bn)
  • Management fees represented 89% of revenue
  • Rebranding of Cordea Savills to Savills Investment Management
  • Acquisition of SEB Asset Management AG, anticipated to complete in August

6 months ended June (£ millions)

Revenue UPBT 2015 2014 % chg 2015 2014 % chg Investment Management 14.0 12.7 10.2% 2.5 1.6 56.3% UPBT margin 17.9% 12.6%

19

slide-20
SLIDE 20

Business Diversification

20

slide-21
SLIDE 21

Savills Diversified Business Model

21

slide-22
SLIDE 22

Geographic Breadth

22

slide-23
SLIDE 23

Looking Ahead

23

slide-24
SLIDE 24

Pursuing US growth opportunities (acquisition/recruitment)

Management Focus

Integrating key acquisitions

24

Developing and integrating Europe and UK businesses Deliver integration of SEB from completion

slide-25
SLIDE 25

Strong first half performance due to market strength in key transactional services

Summary & Outlook

Commercial markets generally strong, residential markets showing signs

  • f improvement.

Emphasis on delivery from period of expansionary activity

25

Savills well placed to serve worldwide occupiers and Investors

slide-26
SLIDE 26

Connecting people and property since 1855