By Millie Turner
Estate agency giant Savills has continued to make hay while the sun shines, with revenue spilling over into the £1bn mark.
Revenue up over 10 per cent to £1.03bn in the six months to 30 June, up from £932.6m in the same period last year.
Like housebuilders, estate agencies have also been reaping the scaling profits of the UK’s house price boom, alongside the frenzy of sales during the stamp duty holiday which ended last summer.
However, the group’s pre-tax profit tumbled by some £13m in the period, falling from £63.3m to £50.4m year-on-year.
The London-listed estate agency has hiked its dividend from 6p to 6.6p, as chief executive Mark Ridley notes that there is a risk of a short-term drop in activity given the current economic and geopolitical climate.
“Despite staff cost inflation and the anticipated increase in discretionary costs, we have performed well so far this year, in line with the board’s expectations,” Ridley said in a statement.
Despite inflation driving up interest rates up, which Ridley expects to continue into the second half of this year – agreeing with wider consensus – he said “there remains significant investor interest in the secure income characteristics of real estate.”
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