London, UK – Savills, the international real-estate advisor, reported a decrease in pretax profit for the first half of 2023. The decline was attributed to reduced trading volumes as real-estate markets adjusted to challenging macroeconomic conditions. Additionally, uncertainties over the timing of market recoveries have led to reduced expectations for the year.
During the six months ending June 30, pretax profit amounted to £6.0 million, a significant drop from the previous year’s figure of £50.4 million. Revenue also saw a slight decline, falling from £1.04 billion to £1.01 billion.
The decrease in transaction advisory revenue was partly offset by gains in market share. Meanwhile, Savills investment revenue experienced a 4% decline during the period.
Margin figures revealed a significant decrease compared to the same period last year. In the first half of 2023, margins stood at 1.6% compared to 5.7% previously. This decrease was a result of reduced market volumes and the company’s commitment to maintaining bench strength to support clients in challenging conditions.
Despite the challenging financials, Savills declared an interim dividend of 6.9 pence per share, representing a slight increase from the previous dividend of 6.6 pence.
In further news, Stacey Cartwright will assume the role of chair at Savills when Nicholas Ferguson retires from the board on December 31. Cartwright brings extensive leadership experience, having served as Chief Executive Officer at Harvey Nichols, Executive Vice President and Chief Financial Officer at Burberry, and CFO at Egg PLC.