Savills on track for £40m profit in 2010

Savills Group, the parent company of Savills Private Finance, says it is on course to make profits in excess of £40m in 2010.

In its Q3 interim management statement released today, the group says it anticipates its underlying profit before tax for the year to December 31 2010 will be more than £40m.

This compares with its underlying pre-tax profit of £25.2m in 2009.

It says revenue at Savills Private Finance has continued to be stable, but the mortgage market remains stagnant.

Since June it has seen transactions in the prime London residential business continue at a healthy level, but it expects Q4 will see lower volumes than that of 2009.  

Its commercial transaction advisory business has also continued to perform strongly, with Q3 revenue over 60% ahead of the same period last year.

It anticipates that it will continue to perform well through Q4 although with limited growth against the strong comparative quarter last year.

Its residential agency business has continued to match 2009’s strong performance since June, driven by continued strength in the prime London market.

A highlight has been the sales performance of a range of luxury developments, which could complete within the calendar year.

The group is in a net cash position and has an unutilised facility of £50m.