Savills PLC on Thursday kept its annual forecasts despite a double-digit drop in interim profit.

For the six months that ended on June 30, the London-based property agent posted a 11% increase in revenue to £1.04 billion from £932.6 million a year earlier.

‘Revenue growth of 11% was driven by a combination of normal growth, 9.0%, in the less transactional service lines, a 26% improvement in commercial transaction revenues, and the anticipated reduction in activity in residential markets,’ Savills explained.

Pretax profit, however, fell 20% to £50.4 million from £63.3 million. ‘Profits were impacted globally by significant growth in staff costs after two years of effective stasis,’ it said.

Operating profit dropped by 21% to £55.8 million from £70.2 million.

Savills said employee benefits expense increased by 11% to £688.2 million from £621.0 million a year earlier.

‘Despite staff cost inflation and the anticipated increase in discretionary costs, we have performed well so far this year, in line with the board’s expectations,’ Chief Executive Mark Ridley said.

Savills declared an interim dividend of 6.6 pence per share, up 10% from 6.0p a year prior.

Looking ahead, Savills said its expectations for 2022 remain unchanged.

Shares were down 2.0% at 1,102.00 pence each on Thursday morning in London.

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