Savills Private Finance breaks even in second half of 2009
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Mortgage Strategy understands that Savills Private Finance broke even in the second half of 2009 and that the brokerage is currently on track to book a small profit in 2010.
The full year results for estate agency group Savills, which came out this morning, combine the results of its two financial services businesses - London-based brokerage Savills Private Finance and Savills Capital Advisers which looks to raise capital on behalf of funds and other investor clients.
As a division Savills’ financial services businesses declined by 35.6% to £11.2m, down from £17.4m in 2008. Overall the division made a loss of £2.9m, compared to a loss of £1m in 2008.
An increase in SCA revenue was offset by the increased costs of an expanded team and a significant reduction in SPF fee income as the UK mortgage market remained stagnant.
SPF’s individual results wont be out until later on in the year but Mark Harris, managing director of SPF, says that against the backdrop of the last year in which several of its main competitors in the broker market went under, the firm was now in a “comfortable” position.
He says: “We made a loss in the first half of 2009 but then broke even in the second half of the year and the outlook for 2010 is to break even or make a small profit.”
Across the group revenue was marginally down from £568.5m in 2008 to £560.7m in 2009, profits surged from £7.7m loss in 2008 to a profit of £13.5m.
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