Savills’ revenue slides 9% in 2020 due to the COVID-19 disruptions

Savills plc (LON: SVS) said on Thursday that its pre-tax profit in 2020 posted a 28% decline. The company attributed its dovish performance to the ongoing COVID-19 pandemic that has so far infected more than 4.2 million people in the United Kingdom and caused a little under 125 thousand deaths. Despite a decline in its pre-tax profit, however, Savills declared a dividend on Thursday.

Savills shares jumped roughly 3% in premarket trading on Thursday and gained another 1.5% on market open. Including the price action, the stock now has a per-share price of £10.95 versus a lower £9.72 per share at the start of 2021. Learn more about how can you start trading on the stock market.

Savills reports £83.2 million of pre-tax profit

Savills said that its pre-tax profit came in at £83.2 million in 2020. In the previous year, its pre-tax profit stood at a higher £115.6 million. The international real-estate advisor valued its full-year revenue at £1.74 billion that represents a 9% annualised decline.

The London-based company reported £96.6 million of underlying pre-tax profit in the recently concluded year – a decline from £143.4 million in 2019.

Savills’ board recommended 17 pence per share of final ordinary dividend on Thursday, which remained unchanged from the cancelled dividends in 2019. The FTSE 250 listed company refrained from announcing a supplemental interim dividend.

CEO Mark Ridley’s comments on Thursday

Chief Executive Mark Ridley commented on the financial update on Thursday and said:

“We remain confident 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.”

Savills also highlighted that it started the year 2021 on a good note and expressed confidence in development opportunities that it sees in the upcoming months. In separate news from the United Kingdom, pub operator Marston’s said on Thursday that its Chief Executive Officer, Ralph Findlay, will step down at the end of the ongoing financial year that will conclude on 30^th September. Findlay served the role at Marston’s for almost twenty years.

Savills performed fairly downbeat in the stock market last year with an annual decline of more than 15%. At the time of writing, it is valued at £1.57 billion and has a price to earnings ratio of 21.94.