Britain’s Savills 69% Dip In Profit
London-listed real estate adviser Savills Plc reported a 69% slump in first-half pre-tax profit as commercial deal activity was hammered by coronavirus-led restrictions that prevented property visits across its markets.
The company said real estate investment activity contracted by 40% in Asia Pacific, while investments in Europe nearly halved in the second quarter. Office space demand in the United States also took a hit.
Britain’s property market was already facing a meltdown due to Brexit-related uncertainties before the pandemic brought the sector to a virtual standstill, in tandem with the global markets. Savills, which cancelled its interim dividend and had previously cut executive pay to ride out the crisis, said profit before tax fell to 7.7 million pounds ($10.14 million) in the six months ended June 30, from 24.7 million pounds last year. Revenue dropped 7% to 791.4 million pounds, as commercial transaction sales dived 23%.