A strong UK residential market and recent acquisitions help push interim pre-tax profit to £31m

Property services company Savills reported a 56% increase in interim pre-tax profit buoyed by strong UK residential property market and recent acquisitions.

Group profit before tax shot up to £31m for the first six months to 30 June 2006 compared with £19.9m over the same period last year. Group revenue grew 33% to £211.1m up from £158.2m.

Savills made a number of acquisitions in the first half of the years. It paid £8.4m for a 50% stake in Korean Asset Advisors and BHP Korea. It also acquired Irish firm Hamilton Osborne King for £39.6m.

Peter Smith, chairman said: “We believe that recent volatility in stock markets continues to highlight the value of property as an asset class. Despite rising global interest rates, the general economic outlook remains positive which should provide general support for property markets. On this basis we are confident of achieving a good result for the full year in line with our expectations.”