Savills has bucked the trend among service firms and predicted record results for 2007 in a trading statement issued today.
Despite the credit crunch and market correction Savills expects its full year results for 2007 to be ‘slightly ahead of expectations’.
This is in stark contrast to DTZ, which said in December it expected full year results to miss expectations.
Broker Cazenove said it expected pre-tax profits to be at least 20% below expectations
Savills, which will announce its full year results on 12 March, said 2007 had been a ‘record year’.
UK and US challenging
But it conceded: ‘Trading conditions in many commercial investment markets, particularly in the UK and US, have clearly been challenging in the last few months.
‘Tenant demand for commercial property in the UK and across Europe has remained steady for most of 2007. In the UK and European investment markets, following a strong first half to 2007, trading volumes in the second half have been restrained by the credit squeeze.’
Residential resilient
It reported its residential business remained resilient and consultancy, property and facilities management, financial services and fund management and its transactional businesses in Europe and Asia performed well.
It also said: ‘The outlook for our UK and US commercial investment, UK residential and UK mortgage broking businesses will inevitably depend on how quickly confidence returns to financial markets.
'However, our transactional businesses in Asia and Europe currently appear less affected by the credit squeeze. We look forward to continued progress in our consultancy, property and facilities management and fund management businesses.’
Savills shares were up 8% in preliminary trading this morning.
No comments yet