Estate agent and consultancy firm Savills saw pre-tax profits soar by 36% last year, boosted by improving markets and strategic acquisitions across the UK and Asia.
Buoyed by an improving volume of transactions across both its prime commercial and residential markets in the UK, and a “record year” in Asia, the firm reached its year end with pre-tax profits of £54.2 million, up from £40m in 2011.
Reducing losses in Continental Europe, and “substantially” growing assets under the management of its investment arm, also allowed the FTSE 250 firm to grow overall revenue by £84.9m (12%) to £806.4m, for the year to December 31, 2012.
Savills group chief executive Jeremy Helsby said: “The changes we have made to our business over the last few years, including acquisitions, recruitment and restructuring, have improved the group’s underlying profit margin.”
The “record” performance in the group’s Asia Pacific business saw profits increase 18% to £32.6m.
Mr Helsby said the group had carried this position forward to make a strong start to 2013.“We expect to make further progress across the group in the year ahead,” he added.
“We anticipate delivering continued improvements in our businesses in Continental Europe and the US, although we are mindful of the risk of further weakness in some of these markets.”
He said Savills’ investment management business has a “good pipeline of funds” to invest through its European platform during the coming year.
Numis analyst Chris Millington said: “Savills’ full-year results are stronger than expected, and it is a tribute to the investment made during the downturn which has resulted in rising market share across the business.
“We are increasing 2013 estimates despite the expectation of tougher transactionary markets in Asia.”