Savills profits soar amid rush to buy before end of stamp duty holiday

Savills earned 36.4p per share, up from 3.9p the year before

Savills (LON:SVS) revealed on Thursday that its profit soared during the first half of the financial year, as demand for its transaction advisory services rose to record-highs.

The company’s pre-tax underlying profit rose by £52.9m, from £13.2m a year ago, to £66.1m.

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The company’s revenue took a similar path, rising to £932.6m during the six-month period to 30 June, up from £141.2m in comparison to the year before.

People to rushed to buy homes as the stamp duty holiday came to an end, causing the property advisory company to post such results.

The stamp duty holiday has buoyed the property market during the pandemic, with greater demand for property and surging housing prices.

GoodMove, the property buyer, carried out research which found that 39% of Brits took advantage of the stamp duty holiday when buying their home during the past year. It is estimated that they made savings of up to £15,000.

Commenting on the results, Mark Ridley, Group Chief Executive of Savills plc, provided a summary:

“I am delighted that our strategy of maintaining full operating strength and high levels of client service through the pandemic has proven successful through the progressive recovery of many markets in which we operate. We have a strong balance sheet and are focused on continuing to develop our global businesses through the recovery period, maintaining a first class service to our clients and safeguarding our staff,” said Ridley.

“Our Transactional businesses have benefited from improving sentiment in most markets, although travel restrictions still represent an obstacle to cross-border capital deployment. In particular, our Residential Transaction business delivered an exceptionally strong performance in the first half albeit we expect activity to return to more normal levels, particularly in the UK, during the second half of the year compared with a strong comparative period in H2 2020.”

The Savills share price is up by 3.97% during the morning session on Thursday, as the company earned 36.4p per share, up from 3.9p the year before.

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