Property behemoth Savills experienced a deceleration in transactions during the first half of the year as investors assessed the ramifications of tariffs, yet delivered robust performance.
The property colossus achieved a 6 per cent uplift in turnover to £1.1bn in the six months to end June, as reported by .
Underlying profit climbed by 10 per cent to £23.3m up from £21.2m, while reported profit before tax surged by 78 per cent to £15.8m.
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Underlying basic earnings per share fell to 11.7p, reflecting heightened tax obligations.
Savills' investment management division witnessed a 6 per cent decline in revenue to £43.6m, which the FTSE 250-listed company attributed to expectations as "some existing products came to the end of their life" while new strategies launched in 2024 will "take time to achieve scale."
Assets under management (AUM) held steady at £22.1bn.
Savills' share price fell 0.8 per cent to 967p in early morning trading, extending a six month decline.
The board announced an interim dividend of 7.4p, up from 7.1p in the first half of 2024.
Mixed conditions in EMEA
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Economic circumstances across Europe, the Middle East and Africa (EMEA) proved varied, with sluggish manufacturing and business confidence, fuelled by elevated market volatility following the announcement of US tariffs in April.
Subdued investor confidence was experienced in the Asia Pacific region, where market transactions declined 26 per cent, as the region was especially affected by US trade policy uncertainties. However, Spain recorded a robust property market, with Germany also showing improvement owing to the Government's plans to increase infrastructure investment.
In the 海角视频, the prospect of potential fiscal changes in the forthcoming Autumn Budget created a "dampening effect" on corporate and private investment activity, leading to a 13 per cent decline in real estate market investment.
The US office market displayed early indicators of recovery, but economic uncertainties affected occupiers' confidence in securing leases for large properties, with comparable conditions evident in the US industrial market.
Mark Ridley, group chief executive of Savills said: "Q2 saw a slowing of transactional activity as occupiers and investors digested the implications of tariffs and geopolitical events.
"Our performance reflects the geographic weighting of our capital markets business."
Business resilient
Despite declining sales, Savills strengthened its footprint in Northern Ireland by acquiring established commercial property agency, Osborne King & Megran Limited.
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Its non-transactional operations delivered a stable earnings stream throughout the period, with the estate agents' digital ventures performing strongly.
The firm's auction division sold more than £420m worth of commercial and residential property during the first half of the year, rising 8 per cent.
Its flexible office market operation, Workthere, also doubled its revenue. Savills' full-year outlook remains unaltered, with the firm believing the deceleration in its principal markets will "prove to be temporary."