Savills has reported a 9% decline in group revenue, falling to £1.74bn, as real estate deals dried up during the pandemic.
Transactional advisory revenue dived by 19%, with the consultancy business down 5% and property management climbing 2%.
In contrast, the UK business was the strongest global performer, with revenue down 2% at £710.7m, compared with a 27% decline in North America, 9% across Europe and 8% in Asia Pacific.
A 19% drop in UK investment volumes for the market drove a 15% decline in transaction revenue. However, the UK residential business rose 10%, as Savills benefited from government measures to buoy the housing market.
Overall, pre-tax profit during the year to 31 December slid 28% to £83.2m, with a profit margin of 5.6%. Supported by property management and consultancy, the UK and Asia reported less dramatic profit declines, down 4% and 1%, respectively.
Chairman Nicholas Ferguson said: “Savills delivered a resilient revenue and profit performance in 2020 in the face of challenging market conditions.
“The relative stability of our less transactional businesses, particularly property management, helped to offset the impact of material Covid-19-related declines in transaction volumes across the world.
“While it remains too early to predict the direction of market activity in the near term, global investor demand for secure income, restricted supply and expectations of continued low interest rates underpin the medium and long-term attraction of real estate as an asset class.”
Chief executive Mark Ridley said: “We remain confident in the long-term attraction of real estate as an asset class and although macro-economic uncertainty resulting from Covid-19 clearly remains, we see enhanced investor demand for income and improvements in leasing activity as occupiers increasingly seek to address their requirements.”
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