Savills reports higher profits
CONCENTRATING on high margin opportunities rather than chasing volume business was the key to a year of higher turnover and profits for land agents Savills.
In keeping with the industrys general recovery, agriculture made an improved contribution in the year to Apr 30. Agricultural agency income rose 23% to £2.3m on the back of the 19% increase in the value of vacant posession land.
Further growth expected
The farm management side of the business also benefited from the acquisition of a controlling interest in Lincs-based Aubourn Farming. Consultancy services are expected to show further growth with the advent of the new Farm Business Tenancies from Sept 1.
Taken together, agricultural and residential property services brought in £21.7m (up 21%) and generated operating profits of £1.5m (up 29%).
The group as a whole saw turnover rise 11% to £35.2m and pre-tax profits up 8% to £3.5m.