Savills H1 Revenue Up 6%; Maintains FY Guidance

Savills plc (SVS.L) reported robust H1 2025 financial results, with revenue up 6% to £1,127.8 million and underlying profit before tax increasing 10% to £23.3 million, alongside a 4% dividend hike. However, the company noted a Q2 slowdown in transactional activity driven by geopolitical tensions and trade policy uncertainty. Despite this, Savills maintained its full-year expectations, anticipating a recovery in the second half, with CEO Mark Ridley expressing confidence the slowdown will be temporary.

Analysis

Savills plc reported a robust first half for 2025, with revenue increasing 6% to £1,127.8 million and underlying profit before tax growing 10% to £23.3 million. This performance was underscored by a 4% increase in the interim dividend to 7.4p, signaling management confidence. However, the positive headline figures mask a notable slowdown in transactional activity during the second quarter, which the company attributes to geopolitical tensions and trade policy uncertainty. This deceleration followed a strong first quarter and is reflected in the slight dip in underlying basic EPS to 11.7p from 12.1p in the prior year. While the Group CEO expressed confidence that the slowdown will be temporary, citing strong transactional pipelines, the company's full-year guidance is critically contingent on the pace of recovery in the second half. The company's performance is also contextualized by its geographic weighting towards EMEA and Asia Pacific, with relatively low exposure to the recovering capital markets in North America.

Key Decisions for Investors

• Given that full-year guidance is contingent on a second-half recovery, investors should closely monitor leading indicators for transactional activity in the EMEA and Asia Pacific real estate markets.
• The 4% dividend increase suggests underlying confidence, but the dip in underlying EPS to 11.7p and the stated Q2 slowdown warrant a cautious stance until a rebound in transactions is confirmed.
• Consider Savills' specific geographic exposure, as its performance may lag peers with greater exposure to the North American market recovery mentioned in the commentary.