Savills, an international real estate advisory firm, has released its preliminary financial results for the fiscal year of 2022 (ending December 31, 2022). The company posted a 7% year-over-year rise in their total revenue, coming in at GBP2.3 billion ($3.57 billion). However, despite the increase in revenue, Savills’ underlying profit before tax shrank by 18% year-over-year, settling at GBP164.6 million.

Mark Ridley, group chief executive at Savills, commented on the results saying that the firm’s performance was “slightly ahead” of their expectations given the difficult markets they were faced with. He also noted that in comparison to the pre-Covid period of 2019, Savills had made a significantly better showing. He added that their less transactional businesses – such as property and facilities management, consultancy and investment management – were largely responsible for propelling the company’s performance, citing that the property and facilities management business had seen a 13% increase in revenue and consultancy had grown by 4%.

Making remarks on the trends seen for the coming year, Ridley shared concerns about possible inflation and interest rate changes. Additionally, he further suggested that the UK market had been recalibrating quicker than usual and would be aided by the lack of supply of developments and an overall move towards sustainability.

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With the tough market conditions expected to last for some time, Ridley predicts the improvement of their market activities to start from the second half of the year. He said that the company was actively making sure their staff was ready for the coming recovery and were additionally investing to prepare.

Marcus Loo, CEO for Savills Singapore, weighed in on the performance of the firm’s transactional teams, noting that they had “once again performed extremely strongly” in the past year and that they were aiming to grow their non-transactional business both locally and regionally by acquiring more organisations.

In conclusion, Savills saw a 7% increase in revenue despite a fall in underlying profits and are expecting progressive market improvement in the latter part of the year. Their team is ready and prepared to make use of the recovery, with firm plans in place to expand their business both locally and regionally.