Savills Aussie revenue soars

SAVILLS Australia's has made a substantial contribution to Savills plc's result for the year to December 31.

The London Stock Exchange listed agency yesterday booked an underlying profit before tax up 14% to £85.5 million compared to £75 million in 2006.

And revenue was up 26% to £650.5 million from £517.6 million.

According to Savills Australia’s executive chairman Paul McLean revenue for the year was 23% ahead of forecast and profit was 52% ahead of forecast budget.

“The strength of the market last year was Sydney and Perth and we performed best in Office Leasing and in the professional services – valuations,” he added.

However, McLean said the performance would be hard to repeat in 2008.

“We are predicting a softening of the market. It will be a much tougher year in terms of the general economy and we are seeing that right now.

“So we anticipate that it will be 12-18 months where will see a correction in the market,” he concluded.

Australian Property Journal