Annual Report
and Accounts
2024
Helping people
thrive through
places and spaces
It could be a sustainable office that sparks creativity, or
a home that gives a family room to grow; a development
focused on the needs of the local community, or a rural
estate consciously managed for biodiversity.
Whether you are an investor, client, colleague, or live
in the communities in which we operate, our goal is
simple: to help our stakeholders thrive through
places and spaces.
SEE
OUR
BUSINESS MODEL ON PAGES 10 AND 11
Mark Ridley
CEO
Places and spaces are more than land or bricks and
mortar. They’re where people create new ideas,
build memories and plan futures.
01
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Contents
OVERVIEW
02
Group highlights
05
Savills at a glance
STRATEGIC REPORT
06
Chair’s statement
10
Our business model
12
Market insights
18
Key performance indicators
20
Chief Executive’s review
27
Chief Financial Officer’s review
30
Principal and emerging risks and uncertainties
facing the business
37
Viability statement
38
Responsible business
60
Task Force on Climate-Related Financial
Disclosures (‘TCFD’)
GOVERNANCE
83
Governance overview
83
Applying the principles of the 2018 UK Corporate
Governance Code
84
Leadership and Company purpose
84
Chair’s Introduction
86
Governance at a Glance
88
Board of Directors
91
Group Executive Board
94
Board Leadership and Company Purpose
95
Board Attendance in 2024
96
What the Board did in 2024
100
Stakeholder Engagement
103
Section 172(1) statement
106
Division of responsibilities
106
A robust governance framework
107
Division of the responsibilities
112
Composition, succession and evaluation
112
Nomination & Governance Committee Report
119
Audit, risks and internal controls
119
Review of the effectiveness of the risk management
and internal control systems
120
Audit Committee Report
129
Directors’ Remuneration Report
129
Annual statement
163
Directors’ Report
167
Statement of Directors’ responsibilities in respect
of the financial statements
FINANCIAL STATEMENTS
168
Independent Auditor’s Report
178
Consolidated income statement
179
Consolidated statement of comprehensive income
180
Consolidated statement of financial position
181
Consolidated statement of changes in equity
182
Consolidated statement of cash flows
183
Notes to the consolidated financial statements
269
Company statement of financial position
270
Company statement of changes in equity
271
Notes to the Company financial statements
285
Appendices
287
Shareholder information
02
Annual Report and Accounts 2024
£39.5m
£52.9m
2023
2024
55.1p
66.2p
2023
2024
£94.8m
£130.4m
2023
2024
4.2%
5.4%
2023
2024
65%
64%
2023
2024
£158.6m
2023
2024
30.0p
39.4p
2023
2024
£2,238.0m
£2,404.0m
2023
2024
£18.8m
The Group delivered an improved
performance in 2024 in line with
expectations and substantially ahead
of the previous year.
Reported profit after tax
£52.9
m
(2023: £39.5m)
Underlying earnings per share**
66.2
p
(2023: 55.1p)
Underlying profit**
£130.4
m
(2023: £94.8m)
Underlying profit margin**
5.4
%
(2023: 4.2%)
Balance (non-transactional)*
64
%
(2023: 65%)
Operating cash generation
£158.6
m
(2023: £18.8m)
Reported earnings per share
39.4
p
(2023: 30.0p)
Revenue
£2,404.0
m
(2023: £2,238.0m)
GROUP HIGHLIGHTS
03
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
2023
2024
2.5%
2.6bn
3.7%
2.7bn
2023
2024
£22.1bn
£21.7bn
2023
2024
58%
58%
2023
2024
Global real estate markets began to recover in 2024, however volatility in interest
rate expectations and challenging geopolitical events somewhat flattened the
curve of that recovery. Against this backdrop the Group’s improved performance
is in line with our expectations and, if greater economic and political stability
emerges, bodes well for further growth in our business.”
Mark Ridley
CEO
SEE PAGES 20 TO 26
Property under management (sq ft.)
2.7
bn
(2023: 2.6bn)
Reported pre-tax profit margin***
3.7
%
(2023: 2.5%)
Assets under management (‘AUM’)****
£21.7
bn
(2023: £22.1bn)
Geographical spread (% non-UK)
58
%
(2023: 58%)
*
Defined as the % of Group revenue derived from non-transactional
revenue streams. See Non-Financial Key Performance Indicators on
page 19 for further information.
**
Underlying profit is an alternative performance measure used to
assess the performance of the Group. Underlying profit is calculated
by adjusting reported pre-tax profit for profit/loss on disposals,
share-based payment adjustments, amortisation and impairment of
intangible assets arising from business combinations, impairment of
goodwill, significant restructuring costs, transaction-related costs and
other items that are considered significant in size or non-operational in
nature. Underlying EPS is also an alternative performance measure used
to assess the performance of the Group. Underlying EPS is calculated
using the underlying profit after tax measure, with the weighted average
number of shares remaining the same as the GAAP measure. Refer to
Note 10 and Note 14.2 to the financial statements for further explanation
of underlying profit measures.
***
Reported pre-tax profit margin is an alternative performance measure
calculated by dividing profit before income tax by revenue.
****
Estimated position as at 31 December 2024, 2023 comparative as
reported in the 2023 Report and Accounts.
04
Annual Report and Accounts 2024
WHAT WE DO
680
+
Offices and
associates
42,000
+
Staff
We provide best-
in-class insights
and advice to
help individuals,
businesses and
investors make better
property decisions.
£2.4
bn
Group revenue
United Kingdom
42%
Continental Europe
and the Middle East
16%
Asia Pacific
29%
North America
13%
05
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Where our
expertise lies
For nearly 170 years, we
have been helping people
thrive through ‘places and
spaces’. At the forefront of
the real estate industry and
with over 42,000 professionals
working collaboratively
across our global and local
networks, we offer a huge
range of services and specialist
expertise to ensure our clients
achieve the best outcomes.
TRANSACTION ADVISORY
The Transaction Advisory
business stream comprises
commercial, residential, leisure
and agricultural leasing, tenant
representation and investment
advice on purchases and sales.
SEE PAGES 22 AND 23
PROPERTY AND
FACILITIES MANAGEMENT
Management of commercial,
residential, leisure and
agricultural property for owners.
Provision of a comprehensive
range of services to occupiers of
property, ranging from strategic
advice through to project
management and all services
relating to a property.
SEE PAGE 24
INVESTMENT MANAGEMENT
Investment management of
commercial and residential
property portfolios for
institutional, corporate or
private investors, on a pooled
or segregated account basis.
SEE PAGE 26
CONSULTANCY
Provision of a wide range of
professional property services
including valuation, project
management and housing
consultancy, environmental
consultancy, landlord and tenant,
rating, development, planning,
strategic projects, corporate
services and research.
SEE PAGE 25
SAVILLS AT A GLANCE
Demonstrating
geographic and
business diversity
Our global size and strength
We have an international network of over 680 offices and associates and
over 42,000 staff throughout the UK, Asia Pacific, the Americas, Continental
Europe, Africa and the Middle East, offering a broad range of specialist
advisory, management and transactional services to clients all over the world.
CONTINENTAL EUROPE
AND THE MIDDLE EAST
UNITED KINGDOM
ASIA PACIFIC
NORTH AMERICA
£1,008.6
m
Revenue
(2023: £941.5m)
£702.6
m
Revenue
(2023: £659.0m)
128
Offices
(2023: 131)
9,610
Employees
(2023: 9,454)
57
Offices
(2023: 57)
28,430
Employees
(2023: 28,412)
£377.9
m
Revenue
(2023: £342.4m)
£314.9
m
Revenue
(2023: £295.1m)
63
Offices
(2023: 63)
3,430
Employees
(2023: 3,220)
41
Offices
(2023: 43)
980
Employees
(2023: 994)
06
Annual Report and Accounts 2024
Chair’s statement
Stacey
Cartwright
Chair
Strong profit growth
in challenging
environment.”
Results overview
The Group’s revenue increased by 7% to £2.4bn (2023:
£2.2bn), up 10% on a constant currency basis. Savills
Transactional businesses delivered 13% revenue growth
during the year with recovery in most markets despite
significant ongoing volatility. The trajectory of that recovery
was somewhat shallower than anticipated at the start of
the year; for investors and occupiers this was a function
of macroeconomic and geopolitical events including the
impact of elections in key markets, significant volatility in
bond yields and, latterly the interest rate expectation being
‘higher for longer’. Nevertheless, improved transaction
markets, the inherent operational gearing of the Group
and the benefits of prior period restructuring in certain
markets, combined to deliver a 38% increase in Group
underlying profit to £130.4m (2023: £94.8m), representing
an underlying profit margin of 5.4% (2023: 4.2%).
The Group’s strength across our less transactional service
lines continued to provide a resilient earnings stream, with
the Consultancy and Property Management businesses
performing well, growing revenue by 8% and 5%, respectively.
Our Investment Management business traded in line with
our expectations given the valuation adjustments during
the period, with the raising and deployment of capital
inevitably more challenging during a period of interest
rate and price volatility.
07
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
§
Group revenue up 7% to £2.4bn (2023: £2.2bn)
§
Underlying profit before tax increased 38% to
£130.4m (2023: £94.8m)
§
Reported profit before tax, after exceptional
costs, increased 59% to £88.3m (2023: £55.4m)
§
Underlying basic EPS up 20% to 66.2p (2023:
55.1p); reported basic EPS up 31% to 39.4p
(2023: 30.0p)
§
Aggregate proposed final and supplementary
interim dividends of 23.1p (2023: 15.9p), giving
a total distribution for the year of 30.2p
(2023: 22.8p)
§
Net cash of £176.3m (2023: £157.1m).
2024 HIGHLIGHTS
The Group’s reported profit before tax increased by
59% to £88.3m (2023: £55.4m), representing a reported
pre-tax profit margin of 3.7% (2023: 2.5%). In the face
of continued economic uncertainty and geopolitical
risk, the restructuring programme that commenced in
2023 was continued in 2024 to ensure market recovery
assumptions remained valid; for specific markets,
these were revised and further action taken. The Group
recognised restructuring costs of £17.2m in the year
(2023: £13.9m), with approximately £3.5m being
carried over to Q1 2025.
The Group continued to maintain a strong liquidity
position with net cash (cash and cash equivalents net
of borrowings and overdrafts) of £176.3m at year-end
(2023: £157.1m).
Currency movements in the year reduced revenue by
£49.3m, underlying profit by £2.4m and reported profit
before taxation by £1.7m.
Market conditions
In the UK, for both occupiers and investors, macro-
economic and geopolitical factors, together with the
actual and potential impact of economic and fiscal
policies in a number of core markets, limited the urgency
to transact. In the occupational markets the return to
more normal levels of leasing activity continued in 2024.
Take-up in the London office market was 2% up year-
on-year, and only 5% below the long-term average. Due
to occupier demand, the most notable change in the
London office market in 2024 was in City of London
prime rents, which rose by 7.5%. The logistics market
had a stable year in terms of take-up.
UK Residential markets were aided by interest rate cuts
through the year, however sentiment was affected by
fiscal changes introduced in the post-election budget.
In Europe, overall economic growth remained
muted. Southern and Eastern European countries
outperformed, while Germany and France remained
subdued. Against that backdrop, the final quarter of
2024 saw a resurgence in investment activity, with
volumes reaching €53bn, a 31% increase compared with
Q4 2023. This recovery was buoyed by improved market
sentiment following the European Central Bank’s interest
rate cuts in the second half of 2024.
In Asia Pacific, in the context of easing inflationary
pressures, the start of rate-cut cycles across the region
(excluding Japan) and the establishment of new
governments after a busy election year, investment
activity in the region began to improve. 2024 real estate
investment volumes across Asia Pacific showed 15% year-
on-year growth, reaching US$168.1bn after the previous
two years of contraction. The exception was Greater
China, where transaction volumes reduced by just over
15% year-on-year.
In North America, the office sector largely recalibrated,
with wide variations in the rate and degree of recovery
across markets. The polarisation of the office sector
between ‘Grade A’ and everything else increased
as prime properties, with appropriate amenity and
environmental attributes, were in high demand from
financial services companies, law firms, and other
professional services tenants. Leasing activity in the
technology sector remained largely muted although
there are positive signs of demand from the generative
AI and cloud computing sectors.
Business development
Savills has continued to focus on the strategic
development of the Group and improving our offering
to clients; this has been enabled by the Group’s strong
balance sheet and positions the Group well as global
markets continue their progressive recovery. In the first
half of the year we advanced our strategy of expanding
our Global Prime Residential services with the acquisition
of an agency in Switzerland (Verbier Hospitality SA) and
increasing our shareholding in our agency network in the
French Riviera (Riviera Estates SAS). We also invested
significantly in starting a prime residential agency in the
United Arab Emirates and further invested in residential
sales in Sydney and Melbourne, Australia. On the
Commercial side, the Group acquired Situu Limited, a
market leading flexible office advisory business in the UK
to complement our Workthere flexible occupier service.
In the second half of the year, we increased our
shareholding in, and began to consolidate the results of,
the fast-growing full-service real estate consultancy in
India (Savills Property Services (India) Private Limited)
and a leading supply chain and logistics consultancy
based in Malaysia (LCA Core Sdn Bhd Group). In
addition, the Group acquired a project management
consultancy in Malaysia (PMCC Actus Sdn Bhd) and
a residential property management business in Spain
(Medasil Desarrollos SL).
Supported by our strong balance sheet, we continue
to focus on enhancing our client offering across
geographies and service lines and have a healthy
pipeline of opportunities under review.
08
Annual Report and Accounts 2024
CHAIR’S STATEMENT
continued
Technology
The Group continues to focus on developments in
technology and data, investing in platform upgrades
throughout the business, including both operating
and finance systems, and service-specific digital
transformation programmes.
Our digitally enabled businesses continue to perform
well. Our market-leading Auction business took further
market share in both the UK residential and, increasingly,
commercial auction markets, selling over £810m of
property during the year, an annual increase of
over 40%.
Cureoscity, a platform that connects occupiers,
landlords and their managing agents has increased
annual recurring revenue (‘ARR’) by over 35% year-on-
year. Workthere, our flexible office advisory business
operating in eleven markets, more than doubled revenue
in the UK and increased revenue over 70% globally.
Climate:
Through our advice to clients and the
work we do directly, we always seek to add value
through initiatives that help both people and our
environment to thrive.
In 2024, we were pleased to receive SBTi validation
for our near-term Net Zero targets. Against these
targets, Savills greenhouse gas (‘GHG’) Scope 1 and
2 target of 72% reduction is on track with a decrease
achieved during the year, so that at the end of 2024
GHG emissions had reduced by 31.6% against the 2019
baseline. Despite this progress there remains much
to do and we remain committed to progressing our
path to decarbonisation.
Culture:
We actively foster an inclusive workplace –
aiming to attract diverse talent, develop and support
our people, and always lead by example.
This year Savills UK supported 239 apprentices
and 256 graduates, we continue to attract diverse
applicants across all of our apprentice and graduate
programs, and have worked hard to increase the
options available by partnering with more teams
and divisions throughout the year.
Savills was activity recognised at 16 different award
events globally. In particular, seven Savills North
America colleagues were recognised with highly
regarded ESG-related awards and our UK Head of
Diversity and Inclusion (‘D&I’) won Head of D&I of
the Year at the British Diversity Awards.
78 D&I events were held across our global office
locations this year and 86 mental health events took
place. Savills Hong Kong became a signatory of both
the Racial Diversity & Inclusion Charter for Employers
and the Good Employer Charter 2024 and Savills
France, Savills Germany, and Savills Netherlands
signed country Diversity Charters.
Community:
People are at the heart of our business.
We aim to create a lasting positive social impact on
the local communities in which we work through the
way we engage with them, the work we do and the
charitable initiatives we run to support them.
In 2024, over 21,600 voluntary and pro bono
hours were given across Savills and £1.5m donated
by the Group, with over 495 charitable causes
supported globally. Every employee is encouraged
to provide social value through volunteering,
fundraising or pro bono activity. In North America,
around 80% of employees contributed to office-
wide events, while in Asia 3,649 volunteer sessions
were given. In CEME 1,358 colleagues were involved
in volunteering or fundraising initiatives, while in
Savills IM a further 138 were recorded for volunteering
activities this year. In the UK, employees contributed
13,868 social value hours, covering volunteering,
fundraising and pro bono activity. 9,993 of these
hours were volunteering. Savills teams also advised
on planting of 3.2m trees and undertook 241 Net
Zero or Carbon Pathways.
SUSTAINABILITY IN REAL ESTATE
Many of our investments through Grosvenor Hill Ventures
(our in-house ‘prop-tech’ investment subsidiary) continue
to develop well. YOPA, the hybrid estate agent, has taken
market share in the UK residential market. VU.CITY, the
highly accurate city-wide 3D digital platform that helps
make better design and planning decisions, continues to
attract new clients and increase annual recurring licence
revenue. Finally, Income Analytics, which helps the real
estate industry better understand tenant income risk,
almost doubled its annual revenue during the year.
We continue to investigate, appraise and experiment
with new and emerging technologies through our
innovation and data teams globally. There has been
increased focus on the opportunities presented by
the latest developments in the broad area of artificial
intelligence (‘AI’). We use machine learning technologies
in many of our bespoke data platforms across the
Group and use other AI technologies to help improve
efficiencies across multiple service lines.
Savills will continue to analyse the challenges across real
estate that this fast-moving technology can both create
and solve.
09
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Board
As announced in March 2024, Adriana (‘Andi’)
Karaboutis was appointed as an additional
Independent Non-Executive Director with
effect from 14 March 2024. I am delighted that
Andi has joined the Board and we are already
benefitting from her extensive experience,
particularly in the field of technology.
Dividends
An interim dividend of 7.1p per share (2023:
6.9p), amounting to £9.7m was paid on
30 September 2024, and a final ordinary
dividend of 14.5p per share (2023: 13.9p) is recommended,
making the ordinary dividend 21.6p per share for the
year (2023: 20.8p). A 330% increase in the supplemental
interim dividend to 8.6p per share (2023: 2.0p) is
declared, taking into account the improved underlying
performance of our Global Transaction Advisory business.
Taken together, the ordinary and supplemental interim
dividends comprise an aggregate distribution for the
year of 30.2p per share, an increase of 32% on the 2023
aggregate ordinary and supplemental dividend of 22.8p.
Subject to Shareholder approval of the proposed final
dividend at the AGM on 14 May 2025, the aggregate
final and supplementary interim dividends of 23.1p will
be paid on 22 May 2025 to Shareholders on the register
at 11 April 2025.
People
On behalf of the Board, I wish to express my thanks to
all our people worldwide for their hard work, commitment,
collaborative approach and continued focus on client
service, which enabled the Group to deliver a substantially
improved performance on the previous year.
Summary and outlook
Savills improved performance in 2024 reflects the robust
earnings provided by our less transactional businesses
together with the effect of our inherent operating
leverage in the early recovery of transactional markets.
Most markets were in recovery as we entered 2025
and, whilst uncertainty continues, there remains the
expectation of reductions in the cost of capital during
the year.
We expect re-financing driven activity and the trend
towards corporates requiring greater office attendance
for staff to continue to be positive for transaction
volumes. Savills remains well positioned to deliver
against the Group’s strategic objectives of broadening
our offering to clients across geographies and service
lines, supported by a strong balance sheet and thus
driving profitability as market recovery continues.
Stacey Cartwright
Chair
12 March 2025
5.4
%
Underlying
profit margin
(2023: 4.2%)
£88.3
m
Reported profit
before tax
(2023: £55.4m)
£130.4
m
Underlying profit
(2023: £94.8m)
£2,404.0
m
Revenue
(2023: £2,238.0m)
10
Annual Report and Accounts 2024
OUR BUSINESS MODEL
The model below illustrates in simple terms how
we create Shareholder value through improving the
strength of our premium brand, and through the delivery
of profits and dividends to Shareholders. We treat every
client as an individual and take time to understand what
they need and how we can best service them.
With more than 42,000 professionals dedicated to
commercial and prime residential real estate across
70 countries, we have the expertise to bring a
client’s vision to life.
Our people are key to delivering excellent service
to our clients and achieving our objectives and the
culture ingrained in our business is what sets us
apart, guiding the way our people behave to bring
our clients the best possible service.
We have built our brand and reputation on the
quality of our people, relationships, resources and
processes. Savills has a strong and well-embedded
culture, founded on an entrepreneurial approach
and on our values and operational standards. All
that we do is underpinned by strong governance,
a disciplined approach to risk management and
high standards of responsibility, which supports
the sustainable development of our business.
More detail of our governance structure, policies
and practices can be found later in this Annual
Report on pages 83 to 165.
We are committed to delivering the highest
levels of client service and creating long-term
relationships with our clients. We are committed
to adding value while always honouring our
responsibility to protect the environment, support
local communities and foster an inclusive culture.
Whether our client is a corporate business looking
to expand, an investor seeking to sustainably
optimise their portfolio or a family trying to find
a new home, we bring a truly personal approach
to every project, delivering best-in-class insights
and advice to help our clients make better
property decisions.
1
Our resources & relationships
LONG-TERM CLIENT
RELATIONSHIPS
OUTSTANDING PEOPLE
FINANCIAL
INTELLECTUAL
PROPERTY
§
Client care programmes
§
High-quality service
§
Local knowledge
§
Entrepreneurial approach
§
Prudent capital structure
§
Strong cash generation
§
Market intelligence
§
Brand and reputation
11
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
4
Value-creation
2
Our business model
Underpinned by
3
DEFENSIVE,
SCALE BUSINESS
CYCLICAL HIGH-MARGIN
BUSINESSES
SHAREHOLDERS
30.2
p
Dividends
£52.9
m
Reported profit
after tax
39.4
p
Reported earnings
per share
£130.4
m
Underlying profit
66.2
p
Underlying earnings
per share
PEOPLE
§
Develop talent
§
Employee engagement
§
Diversity and inclusion
CLIENTS
§
High-quality service –
Client relationship
§
Client care –
Client relationship
management team
COMMUNITY
§
Reduce environmental
impact – Carbon
emission reduction
§
Community investment –
Community engagement
programmes
39
%
Property and
facilities
management
28
%
Commercial
transactions
21
%
Consultancy
8
%
Residential
transactions
4
%
Investment
management
OUR GLOBAL VALUES
§
We listen
– We put our
clients at the heart of
everything we do. We listen
to our clients’ unique needs
and take time to understand
their aspirations, responding
with bespoke solutions to help
them achieve their goals
§
We empower
– Our experts
pioneer new approaches,
bringing fresh ideas and
informed insights to the table
§
We challenge
– We are always
open and honest in our views,
constructively challenging our
clients and each other in the
pursuit of the best results
§
We collaborate
– We
collaborate with our clients
to build personal, lasting
relationships, uniting diverse
perspectives and expertise
across our global and
local networks
GOVERNANCE
§
Strong Board and
management
§
High standards of governance
DISCIPLINED APPROACH
TO RISK
§
Risk mitigation to limit
exposure to any one market
or economy
REVENUE BY BUSINESS
12
Annual Report and Accounts 2024
MARKET INSIGHTS
UK Commercial
2024 saw the expected gentle
recovery in commercial property
transactional volumes in the
UK, albeit in some markets off
a low base. In the investment
market the first two downward
movements in the UK base rate
made debt more accretive in
some sectors, and this, combined
with a strong occupational story,
was enough to deliver a 13% year-
on-year increase in the volume
of investments traded. While this
is still 14% below the ten-year
average for the UK it is a reversal
of the recent downward trends
in transactional activity.
At a sectoral level investment volumes were up in all of
the beds-based sectors and retail, with hotel volumes
up more than 200% year-on-year, and retail volumes
up 35%. 2024 was a notable year for shopping centre
investment activity, with the volume of assets traded
hitting £2bn for the first time since 2016. Office and
logistics investment volumes were down on 2023, by
5% and 11% respectively.
In the occupational markets the return to normal levels
of leasing activity that we saw in 2023 continued in
2024. Take-up in the London office market was 2% up
year-on-year, and only 5% below the long-term average.
The most notable change in the London office market in
2024 was in City of London prime rents, which rose by
7.5% last year. Amongst the other sectors the logistics
market had another steady year of occupier demand,
with take-up in 2024 of 27.8m sq ft compared to 27.7m
sq ft the previous year.
B&M, Ellesmere Port
Advised B&M retail on the acquisition of a 674,000
sq ft unit in Ellesmere Port. The deal represented
one of the largest transactions to occur in the
North West market.
13
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
UK Residential
The mainstream residential
markets benefitted from a
much more stable mortgage
environment over the course of
2024. That, together with two cuts
in bank base rate in the second
half of the year, supported price
growth of 4.7% according to the
Nationwide and a 7% increase in
completed transactions.
The prime housing markets were more affected by
political uncertainty surrounding the general election
and first budget of the new government. Widely trailed
changes in the taxation of non-doms and imposition
of VAT on school fees, hung over the market. Prices in
a challenging central London market fell by 1.9% while
those of other prime property in the capital rose by
just 1.4%. The prime regional markets, which saw the
strongest price growth during the post-pandemic mini
housing market boom, also eased back by 1.0% over
the course of the year.
In London overall we sold +8% more year on year. In the
Country we again saw a strong performance, especially
in our Prime markets. Overall our transactions grew
by +7%.
Meanwhile, after three years in which rents of prime
property in London rose by a total of 23%, much greater
sobriety returned to the market, with rents rising by
1.5% over 2024. A similar picture emerged outside of the
capital where rents of prime homes edged up by just 1.1%.
Mears Ashby Hall, Mears Ashby,
Northamptonshire.
Sold November 2024.
Guide Price £4,250,000.
A Grade II Listed country house, principally Jacobean
with Victorian extensions, in a delightful village
setting. Sitting in an elevated position in grounds
including an ornamental lake, stream, woodlands and
paddock. Extensive range of out buildings, stable
block and tennis court. Sits in approximately 11 acres.
14
Annual Report and Accounts 2024
MARKET INSIGHTS
continued
North America
North America economic growth
expected to be positive again in
2025, led by the US consumer
and resilient labour market.
The US economy remains the primary driver of global
economic growth, supported by robust consumer
spending and a low unemployment rate of 4.1% at
year-end 2024. The strong employment data at year-
end, however, has caused Federal Reserve watchers to
anticipate fewer interest rate cuts in the first half of 2025,
as concerns remain about inflation, which continues
above the 2.0% target. As a result, ten-year Treasury
yields have risen, keeping borrowing costs elevated,
especially for commercial real estate loans.
Canada’s economy is also performing well, buoyed by
a stable labour market and steady consumer demand.
Much attention will be directed toward the new US
presidential administration, its stance on tariffs and
potential effects on the economic paths of the US
and Canada in 2025.
The office sector has largely bottomed out, with
wide variations in the rate and degree of recovery
across markets. The bifurcation in the office sector
has increased as trophy properties have been in high
demand from financial services companies, law firms,
and other professional services tenants.
Leasing activity in the technology sector has
remained largely muted although there are positive
signs of demand from generative AI startups and
cloud computing firms, who may be poised to kick
off the next wave of office leasing in this sector both
nationally and globally. Overall, the office sector
remains largely oversupplied with older and functionally
obsolete buildings. With high availability and vacancy
rates persisting, many of these properties will not be
productive assets unless converted or redeveloped to
non-office use.
Industrial fundamentals weakened further in 2024 as new
supply outpaced demand for the second consecutive
year. Vacancy rates have continued to increase but
remain well below levels seen during the Global Financial
Crisis. Canada is performing better than the US due to
more restrained development activity. Across North
America, the rolling of below-market leases continues to
support investment returns and limit distress. However,
industrial rents have remained largely flat over the past
year, with key markets, such as Southern California,
experiencing continued declines. Rising concessions
and lower annual escalations on new leases are reducing
effective rents, creating additional challenges for
landlords. Sublease availability has reached an all-time
high, although there is reasonably healthy churn, with
third-party logistics providers absorbing space released
by consumer goods and e-commerce companies.
Louis Vuitton
Savills assisted Louis Vuitton in relocating its long-
time Manhattan headquarters ahead of a 2025
demolition. After evaluating 90 buildings and
conducting extensive negotiations, Savills secured a
110,000 SF Class A workspace at 590 Madison Avenue
for 400-500 employees. The deal included prominent
signage, luxury brand exclusivity, and design input for
the building’s amenity center. Strategically located
across from LVMH Tower and Louis Vuitton’s flagship
store, the new headquarters aligns with the brand’s
vision while meeting budgetary needs.
15
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Europe
While 2024 may not be
considered a landmark year,
it marks a pivotal transition for
Europe, leaving an enduring
impact on the region’s
economy and politics.
As Europe adapted to post-pandemic realities amid
geopolitical challenges, stabilising growth and curbing
inflation were central goals. Despite resilience in parts
of the bloc, overall economic growth remained sluggish.
Southern and Eastern European countries outperformed,
while Germany and France lagged behind expectations.
Energy independence and sustainability remained
priorities, driving substantial investments and policies
to strengthen energy security. Politically, the European
Parliament elections in June saw a rise in right-wing
and Eurosceptic parties, signalling potential shifts in
EU policymaking.
Despite these challenges, the final quarter of 2024 saw a
resurgence in investment activity, with volumes reaching
€53 billion, a 31% increase compared to Q4 2023 and
the highest since late 2022. This recovery pushed annual
investment volumes to approximately €174 billion,
buoyed by improved market sentiment following the
European Central Bank’s interest rate cut in September.
Investor interest grew steadily, supported by better
pricing conditions and a surge in asset supply as
European open-ended funds faced redemption
pressures, leading to heightened deal activity.
Larger transactions became more common, aided
by easing bank loan conditions and the re-entry of
institutional investors.
Sectoral investment distribution showed significant
shifts. The office sector’s share fell to 22%, while logistics
accounted for 23%, retail 17%, hotels 11%, and living
sectors 19%. Rental growth remained relatively resilient
despite weaker occupational demand, underpinned
by limited development activity that minimised
vacancy risks.
Yields slowly started to stabilise in early 2024, with
inward shifts in prime logistics and CBD office markets
recorded during Q3 and spreading across most asset
classes by year-end, indicating that prices might have
bottomed out.
Portugal
Savills advised Fidera Group on the sale of MB4 Office
Building to MEAG.
16
Annual Report and Accounts 2024
MARKET INSIGHTS
continued
Investment management
Capital values stabilise but high
interest rates continue to hold
back the recovery.
As interest rates peaked in 2024 and real estate
investment markets adjusted to a new cost of capital,
there were some renewed signs of improving investor
confidence. However, capital raising for core and
core-plus strategies continued to be challenging.
Many European investors remained over-allocated to
real estate, while attractive returns from alternative
asset classes and the high cost of debt meant return
requirements skewed investor interest towards value-add
or opportunistic strategies. Indeed, global fundraising for
core and core-plus strategies declined further in 2024, to
the lowest level since the global financial crisis, according
to data from RealFinX. But as interest rates fall, this
should support more capital back into the sector.
Where investors did deploy capital, this was focused
on a narrow set of income producing assets in the
living, industrial and logistics, and retail park sectors,
supported by strong long-term demand-supply
fundamentals. Institutional investors, particularly
pension funds, are increasingly attracted to funds which
can demonstrate a social impact. In contrast, offices
remained out of favour, particularly larger lot sizes.
Transaction volumes across Europe improved through
the year, up by 11% on 2023’s cyclical low according
to MSCI data. This was largely driven by the return
of capital from North America and the UK. However,
liquidity was still relatively low, with 2024 volumes -40%
below the 2015-19 average. Private investors and those
less beholden to debt financing in particular supported
liquidity for smaller lot sizes, seeking to capitalise in a
market with less competitive tensions. By comparison,
capital flows across the APAC region remained
somewhat subdued, falling by -14% on the year, back
towards levels last seen in 2015-16.
With the decline in capital values increasing the
downside protection to real estate debt investments,
and still strong risk-adjusted returns achievable
compared to real estate equity returns, investor appetite
for debt funds continued to be healthy. However, the re-
entry of some traditional lenders into the market resulted
in a more competitive landscape for lending terms
towards the living and industrial and logistics sectors
in particular. Nonetheless, the underlying fundamentals
towards debt investment continue to be robust.
With capital values stabilising and a supply-side that
has been constrained by high financing and construction
costs, the investment market is well placed to recover.
Particularly sectors and assets that have the tailwinds of
strong demand-supply fundamentals and the ability to
generate rental growth.
Modern multifamily acquisition
in Amsterdam
We have recently completed on a very exciting
acquisition of a modern multifamily asset in
Amsterdam’s Ijburg residential neighbourhood at the
newly developed Centre Island. The six-storey Juf
Nienke building consists of 61 residential units with a
total NLA of 4,389 sqm, with 30 units leased in the
mid-rental segment and 31 in the free rental segment.
The modular, timber-framed construction, has strong
ESG credentials. It has been built with materials which
are either recycled or renewable, significantly reducing
its embodied carbon profile, and has other sustainable
attributes including solar panels, EV chargers and
efficient district thermal heating.
17
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Asia Pacific
With easing inflationary
pressures, the start of rate-cut
the cycles across the region
(ex-Japan), and the establishment
of new governments after a busy
election year, investment activity
in the Asia Pacific region finally
saw a revival in 2024. Preliminary
estimates for 2024 real estate
investment volumes across the
region showed an estimated 9%
year-on-year growth, reaching
US$159.6 billion after two years
of contraction.
Despite experiencing two rate hikes in 2024, Japan
remained a prime investment destination in the region,
thanks to favourable yield spreads and strong leasing
fundamentals. Markets which have seen higher interest
rates over the past two years, including Australia, South
Korea and Singapore, also rebounded following the
expectation of rate-cuts.
Meanwhile, India continued to stand out as an attractive
option for global institutional investors among emerging
markets in 2024, thanks to its promising economic
outlook and the limited availability of prime assets. In
contrast, mainland China and Hong Kong have been
heavily impacted by an economic slowdown and tight
liquidity, and investment activity has remained mute
and dominated by distress sales.
Fuelled by the rapid growth in AI technology, demand
for data centres surged from US$2.2 billion in 2023 to
US$21.3 billion in 2024. Hospitality also saw growth
due to a resurgence in tourism and business travel.
Meanwhile the industrial and logistics sector remained
resilient, driven by the expansion of manufacturing and
ecommerce. In contrast, office, retail and residential
sectors underperformed, due to less favourable yield
returns prompting investors to increasingly diversify
their portfolios toward alternative assets including
life sciences and the living sectors.
*
Notes: Office, retail, industrial, apartment, hotel, and senior housing &
care transactions included. Entity level deals included. Development sites
excluded. Based on independent reports of properties and portfolios
$10 million and greater. Data believed to be accurate but not guaranteed.
Source: MSCI Real Capital Analytics, as of 10th January 2024.
Fraser Residence River
Promenade, Singapore
Savills was engaged as Sell-side Advisor on Fraser
Residence River Promenade. The property comprises
of a 4-storey block of 72 serviced apartments,
3 conservation warehouses and is located within
Robertson Quay along Singapore River.
18
Annual Report and Accounts 2024
2023
2021
2024
2022
2023
2021
2024
2022
2023
2021
2024
2022
£2,238.0m
£2,147.0m
£2,404.0m
£158.6m
£2,298.3m
£302.7m
£164.0m
£94.8m
£200.3m
£130.4m
£164.6m
£18.8m
2023
2021
2024
2022
2023
2021
2024
2022
2023
2021
2024
2022
4.2%
9.3%
5.4%
7.2%
55.1p
116.5p
66.2p
94.9p
£39.5m
£146.7m
£52.9m
£119.8m
KEY PERFORMANCE INDICATORS
Financial
Cash generation
£158.6
m
Underlying profit
£130.4
m
Revenue
£2,404.0
m
Underlying profit margin
5.4
%
Underlying earnings per share
66.2
p
Reported profit after tax
£52.9
m
The measure
The amount of cash the business has
generated from operating activities.
The target
To maintain strong cash
generation to fund working capital
requirements, Shareholder dividends
and strategic initiatives of the Group.
The measure
Underlying profit growth is the
increase/decrease in underlying
profit year-on-year.
The target
To deliver sustainable growth in
underlying profit.
The measure
Revenue growth is the increase in
revenue year-on-year.
The target
To deliver growth in revenue from
expansion both geographically and
by business segment.
The measure
Profitability after all operating costs
but before the impact of significant
non-operational costs and taxation.
The target
To deliver growth in operating
margin by improving the efficiency
with which services are offered.
The measure
Earnings per share (‘EPS’) is the
measure of profit generation.
Underlying EPS is calculated by
dividing underlying profit by the
weighted average number of
shares in issue.
The target
To deliver progressive, sustainable
growth in underlying EPS to
enhance Shareholder value.
The measure
Reported profit after tax growth is
the increase/decrease in reported
profit after tax year-on-year and
over a longer term.
The target
To deliver sustainable long-term
growth in reported profit after tax.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
19
2023
2021
2024
2022
30.0p
104.9p
39.4p
87.0p
65.5%
58.4%
63.8%
59.5%
2023
2021
2024
2022
57.9%
56.9%
58.0%
58.4%
2023
2021
2024
2022
2023
2021
2024
2022
2,635.1m
2,450.9m
2,666.1m
2,472.1m
2023
2021
2024
2022
£22.1bn
£21.9bn
£21.7bn
£22.1bn
Non-Financial
Reported earnings per share
39.4
p
The measure
Reported EPS is the measure of
reported profit generation and is
calculated by dividing reported
profit after tax by the weighted
average number of shares in issue.
The target
To deliver long-term growth
in reported EPS to enhance
Shareholder value.
The measure
Geographical diversity is measured
by the spread of revenues by region.
The target
To progressively balance the
Group’s geographical exposure
through expansion in our chosen
geographic markets.
Geographical spread
58.0
%
(% non-UK)
The measure
Revenue by type of business.
The target
To maintain a healthy balance
of transactional and less or non-
transactional business revenues.
Balance
63.8
%
(% non-transactional income)
The measure
Total square footage property
under management.
The target
To progressively increase the global
square footage under management.
Property under management
2,666.1
m
(million sq ft.)
The measure
Growth in assets under
management of our investment
management business, Savills
Investment Management.
The target
To increase the value of investment
portfolios through portfolio
management, new mandates and
the launch of new funds.
Assets under management
£21.7
bn
20
Annual Report and Accounts 2024
Our vision is to be the real
estate advisor of choice in
the markets we serve. This
is underpinned, especially in
volatile market conditions,
by retaining our core bench
strength to provide best in
class insights and advice to
help individuals, businesses
and investors make better
property decisions.”
Mark Ridley
Group Chief
Executive
The key components of our business strategy
to support this vision are as follows:
§
Business diversification
§
Geographical diversification
§
Commitment to clients to deliver the highest
standards of client service
§
Strength in all real estate sectors
§
Maintenance of our financial strength
§
Group Revenue up 7% (10% in constant currency),
with operational leverage, principally in the
Transactional Advisory business, driving 38%
underlying profit growth (40% in constant currency).
§
Good revenue growth across most our business lines:
–
Strong performance from Global
Transactional Advisory with revenues up
13% (16% in constant currency);
–
Global Residential revenues increased 6%
(6% in constant currency);
–
Good performance from Consultancy
and Property and Facilities Management,
which grew revenues by 8% (9% in
constant currency) and 5% (7% in
constant currency), respectively.
§
Savills Investment Management revenue decreased
11% as anticipated. Assets under management
decreased slightly to £21.7bn (2023: £22.1bn)
as the effect of new capital raised was outweighed
by valuation adjustments during the period.
KEY OPERATING HIGHLIGHTS
Chief Executive’s review
21
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Our performance
Savills geographic and business diversity were key to achieving the year’s results. Our performance by region was
as follows:
Revenue £m
Underlying profit/(loss) £m
2024
2023
% change
2024
2023
% change
UK
1,008.6
941.5
7
108.9
98.3
11
Asia Pacific
702.6
659.0
7
29.6
23.4
26
CEME
377.9
342.4
10
(1.0)
(9.8)
n/a
North America
314.9
295.1
7
3.3
(8.4)
n/a
Unallocated
–
–
n/a
(10.4)
(8.7)
n/a
Total
2,404.0
2,238.0
7
130.4
94.8
38
On a constant currency* basis Group revenue increased by 10% to £2,453.3m, underlying profit increased 40% to
£132.8m (and reported profit before tax increased by 62% to £90.0m). The UK business, representing 42% of the
Group, posted revenue of over £1bn for the first time. Our Asia Pacific business represented 29% of Group revenue
(2023: 30%) and our international businesses as a whole represented 58% of Group revenue (2023: 58%). In North
America and Continental Europe and the Middle East (‘CEME’), improvements in revenue together with the impact of
restructuring substantially improved profitability, despite some challenging market conditions. Further restructuring
was conducted during the year in specific markets, where initial market recovery assumptions were revised.
Our performance by service line is set out below:
Revenue £m
Underlying profit/(loss) £m
2024
2023
% change
2024
2023
% change
Transaction Advisory
870.0
772.9
13
35.6
4.3
728
Property and Facilities Management
944.5
899.5
5
53.6
48.8
10
Consultancy
495.5
459.8
8
41.5
35.6
17
Investment Management
94.0
105.8
(11)
10.0
14.8
(32)
Unallocated
–
–
n/a
(10.4)
(8.7)
n/a
Total
2,404.0
2,238.0
7
130.4
94.8
38
*
Constant currency is an alternative performance measure used to assess
the performance of the Group. Revenue and underlying profit for the
year are translated at the prior year exchange rates to provide a constant
currency comparison. Refer to the appendices to the financial statements
for further explanation of this measure.
Overall, our Commercial and Residential Transaction
Advisory business revenue represented 36% of Group
revenue (2023: 35%) and delivered revenue growth of
13% year-on-year despite continued market volatility. Of
this, Residential Transaction Advisory represented 8% of
Group revenue (2023: 9%). Our Property and Facilities
Management businesses continued to perform well,
growing revenue by 5% year-on-year and representing
39% of Group revenue (2023: 40%). Our Consultancy
businesses increased revenue by 8% and represented 21%
of revenue (2023: 20%). Finally, Investment Management
saw a 11% fall in revenue and represented 4% of Group
revenue (2023: 5%).
People
Over the past year Savills has continued to invest in the
business and our people, diversifying by geography and
strengthening our offer in all major real estate sectors.
The UK business retained its standing as The Times
Property Graduate Employer of Choice for the 18th
consecutive year and our Workthere business was
awarded Flex agency of the year at Flex and The
City Awards.
In our CEME business, Savills Middle East and Egypt
were both awarded Best Real Estate Agency at the
Euromoney Real Estate Awards. Savills also remains
committed to sustainability, highlighted by Savills
Portugal being honoured with a prestigious National
Sustainability Award and Savills Italy winning the real
estate category at the LC Sustainability Awards.
In Asia Pacific, the Savills Project Management team in
Australia was awarded the Project Management Team
of the Year at the RICS 2024 Awards Ceremony, the
Savills Malaysia business also won the Valuation Team
of the Year award from RICS. Finally, Savills won the
Asia Pacific Property Award of Best Property Agency/
Consultancy in Taipei.
These awards are a testament to the strength of our
people and their approach to client service and I thank
them for their continued commitment, loyalty and
hard work.
22
Annual Report and Accounts 2024
64%
36%
Contribution
to Group
revenue
(%)
£4.3m
+13
%
YOY change
The Savills Group advises on commercial, residential, rural
and leisure property. We also provide corporate finance
advice, investment management and a range of property-
related financial services. Operations are conducted
internationally through four business streams.
In August, with Savills India having reached breakeven
from a standing start six years ago, we increased our
ownership in the business to a control position; through
the balance of the year it contributed both revenue and
its maiden profits to the Group.
Overall the Asia Pacific Commercial Transactional
business delivered a return to profitability, with
underlying profit of £6.7m (2023: £2.9m underlying loss).
UK Commercial
UK Commercial Transactional revenue grew by 10% to
£111.0m (2023: £100.6m), predominantly driven by higher
leasing revenues (up 21%). Capital markets revenue
remained stable year-on-year.
2024 saw the expected slow recovery in commercial
property transactional volumes in the UK, albeit in some
markets off a low base. Investment volumes for the year
remained 14% below the ten-year average for the UK.
Core growth areas were the ‘beds-based’ sectors (multi-
family/care/hospitality) and retail, with hotel volumes
up more than 200% year-on-year, and retail volumes
up 35%. 2024 was a notable year for shopping centre
investment activity, with the volume of assets traded
hitting £2bn for the first time since 2016, of which
Savills had the leading market share. Office and logistics
investment volumes were down on 2023, by 5% and 11%
respectively, with the latter stable in terms of take-up.
UK Commercial underlying profits increased by 19% to
£16.7m (2023: £14.0m) with an improved margin of 15.0%
(2023: 13.9%).
£772.9m
£870.0m
£35.6m
2023
2024
£35.6
m
Underlying profit
+728
%
YOY change
Transaction Advisory
£870.0
m
Revenue
2023
2024
Transaction Advisory
Overall, our Transaction Advisory revenue increased by
13% (16% on a constant currency basis) to £870.0m (2023:
£772.9m). Globally our commercial capital transaction
business revenue increased by 30% and our leasing and
occupier-focused transactional revenues by 8%. Our
Global Residential business revenue increased by 6%.
This is a good performance given significant volatility
in transactional market sentiment over the course of
2024, which has nevertheless shown some recovery in
most markets.
Underlying profits increased to £35.6m (2023: £4.3m).
Asia Pacific Commercial
Revenue from the Asia Pacific Commercial Transactional
business increased by 27% to £129.8m (2023: £102.1m),
an increase of 33% in constant currency.
Revenue increased year-on-year in the majority of our
businesses in the region as markets began to recalibrate
in the face of interest rate rises and other challenges.
Leasing revenue growth aided most countries with the
principal exception of Hong Kong, which continues to
face an oversupply in the office sector. In mainland China,
markets remained subdued, however the business did
reduce losses year-on-year. Through the second half of
the year we saw significant improvement in a number of
key markets such as Australia, which grew revenues by
33%, South Korea and Taipei. In addition, in Japan, which
remained largely (but not totally) immune to global
interest rate rises, our transaction business had a very
strong year.
Transaction Advisory
Rest of Group
CHIEF EXECUTIVE’S REVIEW
continued
23
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
North America
Revenue from the North America Transactional business
increased to £284.5m (2023: £266.7m), a 7% increase
(10% in constancy currency).
The overwhelming majority of North American revenue
relates to occupier leasing transactions primarily in the
office sector, but with increasing activity in logistics
and mandated Global Occupier Services (‘GOS’), the
latter of which grew revenue by 24% during the year. In
conventional brokerage, most regions with the exception
of Southern California, achieved revenue growth as
corporate occupiers increasingly began to commit to
new leases. Despite the continued tendency toward
‘home-working’ in most major metropolitan markets,
the return of larger transactions resulted in strong
revenue growth in New York and Chicago; meanwhile
the financial sector trend southwards led to significant
growth in Texas, Atlanta and Nashville. In Canada, new
leadership and recruitment led to 30% revenue growth
year-on-year.
With the growth in revenue, continued investment in the
platform and the benefits of the focused restructuring
exercise in the previous period, the North American
business turned around to record an underlying profit
of £3.5m (2023: £7.4m underlying loss).
Continental Europe and the Middle East
In CEME, transaction fee income increased 26% to
£144.2m (2023: £114.6m); 33% in constant currency.
Generally in CEME, southern regions saw more market
improvement than the core countries of Germany
and France. Nonetheless, the German business grew
revenue by over 10% and halved its losses year-on-year,
as did the Netherlands and Sweden. Ireland produced
revenue and profit growth alongside Spain, Portugal and
Czechia. In the Middle East, investment in our residential
brokerage resulted in strong revenue growth, but held
back overall transactional profits during the period as
anticipated. Meanwhile, in France there was a decline
in revenue and increased losses as we undertook a
re-positioning there. As a consequence of improved
market conditions in many locations and the impact
of restructuring (net of some significant investment),
the CEME transactional business improved its position,
reducing losses by 46% (48% in constant currency)
to £10.9m (2023: £20.3m underlying loss).
UK Residential
UK Residential Transactional revenue increased by
7% to £183.3m (2023: £171.0m), with the mainstream
residential markets benefitting from a more attractive
mortgage environment, aided by two interest rate cuts
in the second half of the year and greater clarity around
the future direction of rates. The prime housing markets
were affected by political uncertainty surrounding the
general election and the fiscal changes introduced in the
last budget. Prices in Prime Central London fell by an
average of 1.9% during the year. Regional prime markets
gave up some of their post-COVID price gains, falling by
an average of 1%.
Savills ‘second-hand’ sales revenue rose 13% with the
number of exchanges up 8% to 5,099 (2023: 4,735).
In London the average lot size transacted by Savills was
down 7% to £2.06m, as lower lot sizes predominated,
but remained stable at £1.27m in regional markets.
Revenue from the sale of new homes reduced 13% year-
on-year, reflecting a decrease of 20% in the number
of exchanges. However, the policy environment for
housebuilders and developers improved substantially
over the course of the year, with the new government
putting house building among its six key objectives.
This will take time to come to fruition; however, the
restructuring of the last 18 months has right-sized
our business for current conditions and improved
profitability and we expect to grow our business as
this market recovers.
Savills Operational Capital Markets business, the
Institutional Residential segment (multi-family/build-to-
rent/PRS/PBSA), increased revenue and profits despite
a number of significant transactions falling into the
beginning of 2025.
Collectively, the UK Residential business increased
underlying profit 6% to £20.5m (2023: £19.4m). In
some challenging market conditions, this performance
represented an underlying profit margin of 11.2%
(2023: 11.4%).
Asia Pacific Residential
Revenue from the Asia Pacific Residential Transaction
business decreased by 4% to £17.2m (2023: £17.9m),
a fall of 1% in constant currency. This was primarily a
consequence of the significant reduction in activity
in mainland China and the impact of reduced market
volumes in Singapore, which significantly reduced the
profit contribution from our mid-market associate,
Huttons. On the positive side, investment in the
Australian residential business (Victoria and Queensland)
led strong revenue growth and the business in Hong
Kong performed well with strong market share
completing some significant individual super-prime
sales. Finally, our Prime residential team in India posted
a maiden profit during the period.
The net result of the above factors, led to an underlying
loss of £0.9m (2023: £1.5m underlying profit) for the year.
24
Annual Report and Accounts 2024
61%
39%
Contribution
to Group
revenue
(%)
CHIEF EXECUTIVE’S REVIEW
continued
Alongside high single-digit growth in Property
Management and double-digit growth in Facilities
Management, Savills Energy Sourcing and Sustainability
teams generated good revenue growth and a significant
improvement in underlying profits as a consequence of
the ‘Green-fit’ agenda.
Our Residential Lettings business delivered a robust
performance with revenues increasing 2%, driven by the
Prime London market, which represents circa 70% of
the business.
Finally, our rural management business performed
well with revenue growth of 4% and significant
profit improvement.
Overall, the UK business increased underlying profit by
14% to £34.6m (2023: £30.4m), reflecting an underlying
margin of 8.9% (2023: 8.5%).
Continental Europe and the Middle East
CEME Property Management revenues increased
by 7% to £103.2m (2023: £96.7m); 12% growth on a
constant currency basis. Much of this increase was in
respect of pass-through costs for outsourced services
in Germany which had no effect on profits.
Revenue growth reflected new mandates won in
Ireland and the Netherlands and expansion into the
residential property management business in Ireland,
the Netherlands and Spain, through the acquisition of
Medasil in August 2024.
Area under management at 31 December 2024 was
320.5m sq ft, an increase of 9% (2023: 294.8m sq ft.).
Profitability and margins in the CEME business were
materially impacted by investment in the German
platform, required to support a significant recent
contract win and anticipated future growth. As a result,
the CEME business recognised a slight increase in
underlying loss for the year to £3.9m (2023: £3.8m loss).
Property and Facilities Management
Our Property and Facilities Management businesses
continued to perform well, with revenues growing by 5%
to £944.5m (2023: £899.5m); 7% in constant currency,
in line with our expected overall growth rate for the
business. Savills total area under management increased
by 1% to 2.67bn sq ft (2023: 2.63bn sq ft). Underlying
profit increased by 10% to £53.6m (2023: £48.8m); 11%
in constant currency.
Asia Pacific
In Asia Pacific, Property Management revenue was
£451.6m, an increase of 1% year-on-year (2023: £447.1m);
4% increase in constant currency.
Investment in Australia started to yield results with
strong revenue and profit growth. The same was true
of Singapore, particularly in the Facilities Management
business. Meanwhile our business in Vietnam continued
to perform well. In Hong Kong, revenue and profits
declined marginally in the period as a result of labour
shortages and reduced contribution from Macau as
the leisure industry there saw much reduced demand.
Finally, in mainland China, revenue declined by 8% (4%
in constant currency). The restructuring of activities in
certain second tier cities largely mitigated the effect
of this on profits.
Overall, despite some of the headwinds, the region’s
underlying profits increased by 3% (6% in constant
currency) year-on-year to £22.9m (2023: £22.2m)
reflecting a slightly increased margin of 5.1%
(2023: 5.0%).
UK
The UK Property and Facilities Management business grew
revenues by 10% to £389.7m (2023: £355.7m) with square
footage under management increasing by 5% as at the
end of the year (2024: 630.0m sq ft, 2023: 600.1m sq ft).
+5
%
YOY change
£899.5m
£944.5m
£53.6m
2023
2024
£53.6
m
Underlying profit
+10
%
YOY change
Property and Facilities Management
£944.5
m
Revenue
£48.8m
2023
2024
Property
and Facilities
Management
Rest of Group
25
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
79%
21%
Contribution
to Group
revenue
(%)
On the positive side, there were good increases in
profitability in Australia, Japan and Taipei.
The above factors resulted in underlying profit
decreasing by 74% to £0.5m (2023: £1.9m); 74% in
constant currency.
Continental Europe and the Middle East
Revenue increased by 8% (10% in constant currency)
to £82.3m (2023: £76.3m).
The CEME Consultancy segment comprises Valuations,
representing circa 60% of the business, and Project
Management consultancy (40%), both business streams
delivered year-on-year growth (8% and 7% respectively).
Revenue growth was driven primarily by the business
in Spain, Poland, the Netherlands and the Middle East,
with the latter growing revenue and profits significantly,
particularly in Saudi Arabia. This helped to mitigate
flatter market conditions for consultancy services in
the northern CEME markets.
Underlying profit increased by 48% to £7.4m (2023:
£5.0m); 56% in constant currency.
North America
This segment primarily comprises complex project
management consultancy and workplace solutions advice
specialising in the life sciences and technology sectors.
Revenue increased 7% to £30.4m (2023: £28.4m);
10% in constant currency. There was strong growth
and a return to profits in our mainstream project
management business with some major projects coming
back on stream. Unfortunately, the effect of much
reduced activity in the Technology and Life Science
Consultancy sectors significantly affected our business
and investment in the Workplace and Location Strategy
Consultancy was a further impediment to profitability
during the period.
The North American Consultancy business delivered
a reduced underlying loss of £0.2m (2023: £1.0m
underlying loss).
Consultancy
Global Consultancy revenue increased by 8% to
£495.5m (2023: £459.8m), 9% at constant currency rates.
Recovery in some of the services which were particularly
challenged in prior periods allowed the Global business
to achieve operational leverage increasing underlying
profits by 17% to £41.5m (2023: £35.6m); 18% on a
constant currency basis.
UK
The UK Consultancy businesses, comprising a broad
range of advisory activities, increased revenue by 5% to
£285.0m (2023: £271.0m).
Most service lines saw growth returning over the year
with the exception of Leisure and Housing Consultancy
services, the latter being affected by the hiatus around
the General Election. Valuation Consultancy grew
10% year-on-year in line with the gradual recovery of
transactional markets. The 6% growth in the Project
Management Consultancy business was driven by the
increase in ’Green-fit’ assignments in both the office and
logistics sectors. Planning, Rural, Lease and Development
Consultancies all delivered significant increases in
revenue and underlying profits during the year.
The above factors resulted in underlying profit increasing
by 14% to £33.8m (2023: £29.7m).
Asia Pacific
In the Asia Pacific Consultancy segment, revenues
increased by 16% to £97.8m (2023: £84.1m); 20% on
a constant currency basis. The year-on-year growth
in revenues was driven by the first-time consolidation
of Savills India from August. The majority of the Asia
Pacific Consultancy segment still constitutes valuation
services, which continued to reflect the relatively low
level of investment transactions across the region. For
this reason, there was a significant reduction in activity
in China and Hong Kong which materially affected the
overall performance of the region.
+8
%
YOY change
£459.8m
£495.5m
£41.5m
2023
2024
£41.5
m
Underlying profit
+17
%
YOY change
Consultancy
£495.5
m
Revenue
£35.6m
2023
2024
Consultancy
Rest of Group
26
Annual Report and Accounts 2024
96%
4%
Contribution
to Group
revenue
(%)
CHIEF EXECUTIVE’S REVIEW
continued
-11
%
YOY change
£105.8m
£94.0m
£10.1m
2023
2024
£10.1
m
Underlying profit
-32
%
YOY change
Investment Management
£94.0
m
Revenue
£14.8m
2023
2024
Investment
Management
Rest of Group
Investment Management
Given the prolonged challenging macro environment in
what was expected to be the ‘nadir period’ for European
Core and Core plus style Investment Managers, Savills
Investment Management traded broadly in line with
expectations, with revenue down 11% to £94.0m (2023:
£105.8m); 10% down in constant currency.
The decrease was primarily due to significant reductions
in performance and transaction fees as recalibrating
valuations continued to make both realisation (through
disposals) and the deployment of capital challenging.
Reflecting valuation changes, base management fees
declined by 3% to £81.1m (2023: £84.0m), increasing
their proportion of gross revenues to 86% (2023:
79%). The decline is in line with expectations as some
existing products came to the end of their life whilst
new strategies, across both pooled funds and mandates,
were launched during the year and will take time to
achieve scale.
AUM, including undrawn commitments, decreased
slightly to £21.7bn (2023: £22.1bn), reflecting a continued
reduction in real estate valuations.
Raising and the deployment of capital was inevitably
harder during this period, however Savills Investment
Management successfully raised £2.0bn (2023: £2.0bn).
Successes during the year include first closes of DRC
SIM’s Pan European Whole Loan Fund and the UK Simply
Affordable Homes Fund, whilst there were also asset
management mandate wins in the UK, Germany and Italy.
As at Q3 2024, 68% of products (by AUM) continued to
exceed their respective fund target or benchmark returns
on a five-year rolling basis.
During the year the business continued to restructure
its cost base, which will benefit future periods, however
underlying profits for the year decreased by 32% to
£10.1m (2023: £14.8m); 30% on a constant currency basis.
Mark Ridley
Group Chief Executive
27
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Simon
Shaw
Group Chief
Financial
Officer
The Group’s strength across our less
transactional service lines continued to
provide a resilient earnings stream and
maintain our strong financial position.
Our full year performance for 2024
improved substantially on the prior
year reflecting gradual recovery and
active cost containment in many of
our markets.”
Profit margin
Underlying profit margin increased to 5.4% (2023: 4.2%),
see Note 10 and Note 14.2 for further explanation of
underlying profit measures. From a trading perspective, this
principally reflected improved performance year-on-year
in higher margin transactional businesses. In addition, each
principal business line began to benefit from the operational
leverage provided by both retaining much of our bench
strength during the challenging market conditions of prior
periods and through targeted restructuring in those markets
where we deemed substantive recovery to be too distant.
Reported pre-tax profit margin increased to 3.7%
(2023: 2.5%).
Taxation
The tax charge for the year increased to £35.4m (2023:
£15.9m), representing an effective tax rate on reported
profit before tax of 40.1% (2023: 28.7%). The Group’s
effective reported tax rate is higher than the UK tax of
25% as a result of the geographic distribution of profits,
prior period adjustments principally to deferred tax and
disallowable expenses largely arising from transaction-
related costs. The underlying effective tax rate increased
to 31.5% (2023: 22.3%) for the same reasons.
Chief Financial Officer’s review
28
Annual Report and Accounts 2024
CHIEF FINANCIAL OFFICER’S REVIEW
continued
Transaction-related costs
During the year the Group recognised a total of £15.9m
in transaction-related costs (2023: £14.6m). These costs
primarily represent liabilities for future consideration
payments which are contingent on the continuity of
recipients’ employment at the time of payment (2024:
£13.2m, 2023: £12.7m). The largest individual component
of this charge related to the acquisition during 2021 of
the 75% partnership interests in DRC Capital LLP (the
real estate debt investment manager), which the Group
did not already then own. The final payment in respect
of this acquisition was made in September 2024.
Transaction-related costs have been excluded from the
calculation of underlying profit on a consistent basis in
line with the Group’s policy.
Restructuring costs
The restructuring programme that commenced in
2023 was continued through 2024 to ensure initial
market recovery assumptions remained valid; on the
revision of these in certain markets, further action was
taken predominantly in Savills Investment Management
and our operations in China, Germany and France.
As described in the Chair’s statement, this resulted in
exceptional restructuring costs of £17.2m (2023: £13.9m)
in aggregate, with a further £3.5m finalised but to be
reflected in Q1 2025.
These charges have been excluded from the calculation
of underlying profit on a consistent basis in line with the
Group’s policy.
Earnings per share
Basic earnings per share increased 31% to 39.4p (2023:
30.0p), reflecting a 34% increase in reported profit
after tax. Adjusted on a consistent basis for significant
restructuring, transaction-related costs, profits and losses
on disposals, certain share-based payment adjustments,
amortisation of intangible assets arising from business
combinations, impairments of goodwill and transaction-
related fair value gains and losses, underlying basic
earnings per share increased 20% to 66.2p (2023: 55.1p).
Fully diluted earnings per share increased by 29% to
37.2p (2023: 28.8p). The underlying fully diluted earnings
per share increased 18% to 62.5p (2023: 52.9p).
Dividends
An interim dividend of 7.1p per share (2023: 6.9p),
amounting to £9.7m was paid on 30 September 2024,
and a final ordinary dividend of 14.5p per share (2023:
13.9p) is recommended, making the ordinary dividend
21.6p per share for the year (2023: 20.8p). A 330%
increase in the supplemental interim dividend to 8.6p
per share (2023: 2.0p) is declared, taking into account
the improved underlying performance of our Global
Transaction Advisory business. Taken together, the
ordinary and supplemental interim dividends comprise
an aggregate distribution for the year of 30.2p per share,
representing an increase of 32% on the 2023 aggregate
ordinary and supplemental dividend of 22.8p.
Cash resources, borrowings and liquidity
Cash and cash equivalents, net of overdrafts in notional
pooling arrangements, at year end increased 7% to
£337.2m (2023: £314.3m). This increase reflected the
Group’s improved profitability in the year.
Gross borrowings at year end increased to £160.9m
(2023: £157.2m). These principally comprise £150.0m
(2023: £150.0m) of 7, 10 and 12 year fixed rate notes
which were issued in June 2018. The Group’s £360.0m
UK revolving credit facility (‘RCF’) was undrawn at the
end of the year (2023: undrawn), and represents the
major part of a total of £421.3m (2023: £422.0m) of
undrawn borrowing facilities available to the Group.
At the year end, cash and cash equivalents net of
borrowings was £176.3m (2023: £157.1m). In February
2025, the £360.0m RCF was cancelled and replaced
with a new £360.0m RCF, which has an initial 4-year
term (with two 1-year extension options) and can be
increased by an additional £90.0m accordion facility.
The new RCF expires on 20 February 2029.
Cash is typically retained in a number of the Group’s
subsidiaries in order to meet the requirements of
commercial contracts or capital adequacy. In addition,
cash in certain territories is retained to meet future
growth requirements.
The Group’s net inflow of cash is typically greater in the
second half of the year. This is as a result of seasonality
in trading and the major cash outflows associated with
dividends, profit-related remuneration payments and
related payroll taxes in the first half. The Group cash
inflow for the year from operating activities was £158.6m
(2023: £18.8m). As previously mentioned, this increase
was due to higher profits year-on-year.
With a significant proportion of the Group’s revenue
typically being transactional in nature, the Board’s
strategy is to maintain low levels of gearing, but retain
sufficient credit facilities to enable it to meet cash
requirements during the year and finance the majority
of business development opportunities as they arise.
Capital and Shareholders’ interests
During the year 16,140 (2023: 4,322) new ordinary
shares were issued on the exercise of options by
participants of the Group’s Save As You Earn (‘SAYE’)
schemes and 154,220 (2023: 32,549) of new ordinary
shares were issued to participants of the Group’s
Performance Share Plan (‘PSP’) schemes. It is the
Group’s policy to issue new ordinary shares for such
schemes only where it is legally required to do so;
for other equity-related incentive schemes the Group
acquires existing shares in the market. The total number
of ordinary shares in issue (before the impact of shares
held by the Savills plc 1992 Employee Benefit Trust
and the Savills Rabbi Trust) at 31 December 2024
was 144,560,279 (2023: 144,389,919).
29
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
66.2
p
Underlying
earnings
per share
(2023: 55.1p)
£176.3
m
Cash and cash
equivalents,
net of borrowings
(2023: £157.1m)
39.4
p
Reported
earnings
per share
(2023: 30.0p)
Savills Pension Scheme
The funding level of the defined benefit Savills Pension
Scheme in the UK, which is closed to future service-
based accrual, improved during the year, with a rise in
the yield on AA-rated corporate bonds decreasing the
Scheme’s liabilities. The plan was in a surplus position
of £9.9m at the year-end (2023: £0.7m deficit).
Net assets
Net assets as at 31 December 2024 were £777.8m
(2023: £752.8m). This movement reflects primarily the
Group’s profit for the year and actuarial gains recognised
on the Group’s defined benefit pension schemes
offset by primarily purchases of treasury shares and
dividend payments.
Key performance indicators (‘KPIs’)
The Group uses a number of KPIs to measure its
performance and review the impact of management
strategies. These KPIs are detailed under the Key
Performance Indicators section on pages 18 and 19. The
Group continues to review the mix of KPIs to ensure that
these best measure its performance against its strategic
objectives, in both financial and non-financial areas.
Financial policies and risk management
The Group has financial risk management policies which
cover financial risks considered material to the Group’s
operations and results. These policies are subject to
continuous review in light of developing regulation,
accounting standards and practice. Compliance with
these policies is mandatory for all Group companies and
is reviewed regularly by the Board. Refer to Note 6 to the
financial statements for further information on financial
risk management.
Treasury policies and objectives
The Group Treasury policy is designed to reduce the
financial risks faced by the Group, which primarily relate
to funding and liquidity, interest rate exposure and
currency rate exposures. The Group does not engage in
trades of a speculative nature and only uses derivative
financial instruments to hedge certain risk exposures.
The Group’s financial instruments comprise borrowings,
cash and liquid resources and various other items such
as trade receivables and trade payables that arise
directly from its operations. Surplus cash balances are
generally held with A rated banks or better.
Interest rate risk
The Group finances its operations through a mixture
of retained profits and borrowings, at both fixed and
floating interest rates. Borrowings issued at variable rates
expose the Group cash flow to interest rate risk, which is
partially offset by cash held at variable rates. Borrowings
issued at fixed rates expose the Group to fair value
interest rate risk. Group policy is to maintain at least
70% of its borrowings in fixed rate instruments.
Liquidity risk
The Group prepares an annual funding plan which
is approved by the Board and sets out the Group’s
expected financing requirements for the next 12 months.
These requirements are ordinarily expected to be met
through existing cash balances, loan facilities and
expected cash flows for the year.
Foreign currency
The Group operates internationally and is exposed to
foreign exchange risks. As both revenue and costs in
each location are generally denominated in the same
currency, transaction-related risks are relatively low
and generally associated with intra Group activities.
Consequently, the overriding foreign currency risk relates
to the translation of overseas profits and losses into
sterling on consolidation. The Group does not actively
seek to hedge risks arising from foreign currency
translations due to their non-cash nature.
The net impact of foreign exchange rate movements
during the year represented a £49.3m decrease in
revenue and a £2.4m decrease in underlying profit.
Refer to Note 6.1 to the financial statements and the
appendices for further information on foreign exchange
risk and movements during the year.
Simon Shaw
Group Chief Financial Officer
30
Annual Report and Accounts 2024
A robust framework for
identifying and managing risk
Identifying and managing our risks
The Board determines the Group’s appetite for risk in
pursuit of strategic objectives, and the level of risk that
can be taken by the Group and its operating companies.
Savills businesses worldwide are responsible for executing
their activities in accordance with the risk appetite set by
the Board, complemented by the Savills Code of Conduct,
Group policies and delegated authority limits.
Risk is assessed across the Group using a systematic
risk-management model covering both external and
internal factors and the potential impact, timing of
impact, and likelihood of those risks occurring. Risk
Management is embedded in all of Savills activities.
Our culture encourages staff engagement to identify
risks and opportunities. Risk discussions are held at
team, divisional and regional level. Conclusions from
risk assessments are incorporated into Risk Registers
at Principal Business and Group-level, which evolve
to reflect changes in identified principal risks and the
emergence of new risks and uncertainties. Where
it is considered that a risk can be mitigated further,
responsibilities are assigned and action plans are agreed.
Principal risks are those to which the Board and senior
management pay particular attention and which could
cause the delivery of the Group’s strategy, results,
financial condition or prospects to differ materially
from expectations.
Plc Board
Audit Committee
Group Executive Board
Group Risk Committee and Group ESG Committee
Principal Business Executive Committees
Heads of Group
functions
Key risks:
Heads of Group
functions identify the
key risks and develop
mitigation actions
Heads of operating
companies
Key risks:
Heads of operating
companies create a register
of their principal risks and
mitigation actions
The Savills Investment Management business has its own
comprehensive and regulatory-compliant framework for
identifying and managing risk, reporting to the Group’s Risk
and Audit Committees and Board.
Review and confirmation
Review and confirmation by the Board.
Process
Risks and mitigation reviewed by Audit
Committee after validation by the Group Risk
Committee and Executive Boards/Committees.
Ongoing review and control
There is ongoing review of the risks and the
controls in place to mitigate these risks.
Review and assessment
Group Director of Risk and Assurance
consolidates the risks identified by the Principal
Businesses, functional and Group risks to
compile the Group’s key risks. Any significant
programme/project risks are also considered
and factored into the Group Principal Risks.
Group Risk
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS
Emerging risks are those which have unknown
components, the impact of which could crystallise over
a longer period of time.
We aim to continuously strengthen our risk management,
with more dynamic risk detection and visibility of the
linkage between risks across the Group.
The Group Director of Risk & Assurance facilitates the
risk assessment and evaluation process with Group and
Principal/business unit management, and challenges risk
findings and the internal control framework to ensure
that these are effective. Risk owners periodically attend
the Group Risk and Audit Committees to present their
in-depth analysis of risks to ensure they are aligned with
an accepted risk tolerance.
Group policies and delegated authority levels set by the
Board provide the basis against which potential risks are
reviewed and escalated to the appropriate level within
the Group, up to and including the Board, for review
and confirmation.
We have a clear framework for identifying and managing
risk, both at a financial, operational and strategic level.
Our risk identification and mitigation processes have
been designed to be appropriate to the ever-changing
environments in which we operate.
31
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Roles and responsibilities
The Board continuously reviews the Group’s principal risks
and is supported in the discharge of this responsibility by
various committees, and in particular the Audit Committee,
the Group Risk Committee and the Group Executive Board.
The risk management roles and responsibilities of the
Board, its Committees, and business management are
set out below, and all of these responsibilities have been
discharged during the year.
1. Board
Responsibilities
§
Approves the Group’s strategy
§
Determines Group risk appetite in the context of the
Group achieving its strategic objectives
§
Establishes and monitors the Group’s systems of risk
management and internal control.
The Audit Committee supports the Board by monitoring risk
and reviewing the effectiveness of internal controls, including
systems to identify, assess, manage and monitor risks.
Actions
§
Receives regular reports on Internal and External
Audit and other assurance activities
§
Receives regular risk updates from the
Principal Businesses
§
Determines the nature and extent of the principal
Group risks and assesses the effectiveness of
mitigating actions
§
Annually reviews the effectiveness of risk
management and internal control systems
§
Approves the Group risk management policy.
2. Group Executive Board
Responsibilities
§
Strategic leadership of the Group’s operations
§
Ensures that the Group’s risk management and other
policies are implemented and embedded
§
Monitors that appropriate actions are taken to manage
material strategic risks and key risks arising within the
risk appetite set by the Board
§
Considers emerging risks in the context of the Group’s
strategic objectives and the global macro-economic
and socio-political environment
§
Approves Group policies
§
Monthly/quarterly finance and performance reviews
Receives updates from Group Risk Committee Monitors
the application of risk appetite and the effectiveness of
risk management processes. The Group Risk Committee
and Board also consider the Group’s overall risk
appetite in the context of the negative impact that the
Group can sustain before the Group’s business model,
future performance, solvency or liquidity are threatened.
Actions
§
Review of risk management and assurance activities
and processes.
3. Principal Business Executive Committees
Responsibilities
§
Responsible for risk management and internal control
systems within the relevant regions/businesses
§
Monitor the discharge of responsibilities by business
units within the relevant regions/businesses.
Actions
§
Review key risks and mitigation plans
§
Review results of assurance activities
§
Escalate key risks to Group Management and Group
Executive Board and the Plc Board.
4. Heads of the Group functions and
operating companies
Responsibilities
§
Maintain an effective system of risk management and
internal control within their function/business unit.
Actions
§
Regularly review operational, project, functional and
strategic risks as well as emerging risks
§
Review mitigating controls, whether financial,
operational or compliance and mitigation plans to
address control gaps
§
Plan, execute and report on assurance activities as
required by Regional or Group Management.
The Group’s overall risk management framework is
further enhanced by the contributions of specialist
groups, for example, the Group Information Security
Committee. As appropriate, certain businesses also
have their own risk committees.
Savills continuously reviews and enhances its
risk management process and seeks advice from
independent advisors where applicable.
The Board is responsible for
the Group’s system of risk
management and internal control.
Risk management is recognised
as an integral part of the
Group’s activities.”
32
Annual Report and Accounts 2024
Change from 2023:
Up
Down
Unchanged
Description
Mitigations
Change
from 2023
1
MARKET CONDITIONS, MACRO-ECONOMIC AND GEOPOLITICAL ISSUES
Strategic objective:
Geographic diversification/Financial strength
Global markets have seen sustained volatility, with
geopolitical tensions and macro-economic risk,
particularly in relation to inflationary pressures and higher
interest rates, with the consequent impact on real estate
values, resulting in uncertainty in many sectors.
This macro-economic uncertainty could lead to a material
contraction in real estate transactional activity.
Political change could bring changes in policy focus and
economic outlook with a consequential impact on real
estate transaction markets.
Inflation and consequential impact in interest rates have
impacted market sentiment and investor confidence, with
the speed at which individual investment/transactional
markets will recalibrate to the current/anticipated cost
of debt uncertain.
Group earnings and our financial condition could be
adversely affected by these and other macro-economic
uncertainties. Savills operates in a number of countries
where transactional business is the largest component,
increasing the level of risk in relation to earnings.
There is a currency risk from operating in a large
number of countries.
As this is in an externally driven risk, the risk landscape
is fluctuating with wider economic interventions and
geopolitical challenges.
Savills has a relatively resilient business model with a
strong brand and focus on excellence in client service.
Our strategy of diversifying our service offering and
geographic spread mitigates the impact on the Group of
macro-economic downturns and weak transactional market
conditions in specific geographies, but this strategy cannot
entirely mitigate the overall risk to earnings. To manage
these risks further, we maintain a continuous focus on our
cost-base and seek to improve operational efficiencies.
Contingency plans are in place to enable us to respond quickly
to market information, economic trends and adverse events.
Continual monitoring of market conditions, market changes
and other events, against our Group strategy, supported by
the reforecasting and reporting in all of our businesses, are
key to our ability to respond on a timely basis to changes
in our operating environment.
Our exposure to countries with economies which are
currently weak is balanced by our business in stronger
markets. When considering new market entry we undertake
due diligence including the impact assessment of political
and economic issues in that particular country.
We manage currency risk in local operations through
natural hedging and matching revenue and costs in the
same currency.
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS
continued
Principal and emerging risks
The Directors have carried out a robust assessment
of the principal risks facing the Company, including
those that would threaten its business model, future
performance, solvency, liquidity and/or pose a material
reputational risk. Our consideration of these key risks
and uncertainties relating to the Group’s operations,
along with their potential impact and the mitigations in
place, is set out on pages 32 to 36. There may be risks
and uncertainties other than those listed which may also
adversely affect the Group and its performance. More
detail can be found in the Audit Committee Report on
pages 120 to 128.
We also conduct a formal exercise twice yearly to
identify and assess emerging risks. While assessing
potential emerging risks we have considered our risk
exposure across a number of themes, e.g. finance
and economics, geopolitical and security, social,
technological, climate and sustainability. Emerging risk
and horizon scanning are integrated as part of regular
risk discussions and reported at both regional and
Group level.
IN SUMMARY, THE GROUP’S PRINCIPAL
EXISTING AND EMERGING RISKS (NOT IN
ORDER OF PRIORITY) ARE:
1
Adverse market conditions, macro-economic
and geopolitical issues.
2
Achieving the right market positioning to
meet the needs of our clients.
3
Recruitment and retention of high-
calibre employees.
4
Reputational and brand risk.
5
Legal risk.
6
Failure or significant interruption to IT systems
causing disruption to client service.
7
Operational resilience/business continuity.
8
Business conduct.
9
Changes in the regulatory environment/
regulatory breaches.
10
Acquisition/integration risk.
11
Environment and sustainability.
33
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Description
Mitigations
Change
from 2023
2
ACHIEVING THE RIGHT MARKET POSITIONING IN RESPONSE TO THE NEEDS OF OUR CLIENTS
Strategic objective:
Business diversification/Strength in Residential and Commercial markets/Geographical
diversification/Commitment to clients
The markets in which we operate are highly competitive.
Competition could lead to a reduction in market share
resulting in a decline in revenue. Failure to respond to
changing service requirements from clients, to innovate
or execute on transformational activities could impact
profitability and market share. Our focus is on retaining
existing clients as well as engaging with new clients. Our
service offering continuously evolves and improves to meet
the changing needs of our clients and this will continue as
changes to our clients’ real estate requirements change, as
a result of, for example, climate change.
To remain competitive in all markets and deliver return
to investors, we continue to promote and differentiate
our strengths while focusing on providing the quality of
service that our clients require.
We continue to invest in the development of client
relationships, our businesses and people and associated
systems/digital technology to support, enhance and
extend our client service offering.
3
RECRUITMENT AND RETENTION OF HIGH-CALIBRE STAFF
Strategic objective:
Financial strength/Commitment to clients
We recognise that the current and future success of
our business is dependent on attracting, developing,
motivating and retaining people of the highest quality.
Ineffective recruitment, people management or
succession planning could impact Savills delivering
its strategic objectives.
We continue to invest in the development of our people
and our learning and development programmes across the
business. Reflecting the change to working patterns, Savills
has maintained its flexible approach to office working while
ensuring that client service remains at the highest level. We
focus on fostering a diverse and inclusive culture across all
our businesses which allows all our people to bring their
true whole selves to work and be the best they can be.
Our partnership-style culture and profit-sharing approach
to remuneration are combined with selective use of share-
based and other rewards to incentivise and retain our
best people for the long-term benefit of the Group. We
continuously review our markets to ensure that reward
packages remain competitive.
We aim to develop talent and promote from within.
Our Diversity and Inclusion strategy, health and
wellbeing programmes and encouragement of charitable
activities and participation in the communities in which
our businesses operate, all combine to ensure that
our businesses have an inclusive culture, provide our
employees with the ability to be the best they can be
and maintain our ‘employer of choice’ status.
4
REPUTATIONAL AND BRAND RISK
Strategic objective:
Strength in Residential and Commercial markets/Commitment to clients
Savills is a strong, well-recognised and valued brand
with an excellent reputation in the markets in which it
operates. The Group’s reputation could be damaged due
to an action or event that results in negative media/social
media coverage.
We recognise the need to maintain this reputation by
ensuring the quality of the service we provide and as
described below, requiring our people to operate to
the highest ethical standards.
We recognise that our brand strength is vital to
maintaining market share in established and new markets.
A brand management programme is in place to ensure
the brand’s positioning and identity is clearly and
consistently promoted.
Our social media policy is supported by guidance and
training as well as ongoing monitoring. All external
statements have to be appropriately approved.
We recognise that the quality of the service we offer
is vital to maintaining the brand. We have in place
policies, controls and processes to monitor the quality
of our client service to support our programme of
continuous improvement.
The Group has well established Environmental,
Social and Governance (‘ESG’) programmes as set
out in Responsible business on pages 38 to 82 to
support our brand values.
34
Annual Report and Accounts 2024
Change from 2023:
Up
Down
Unchanged
Description
Mitigations
Change
from 2023
5
LEGAL RISK
Strategic objective:
Financial strength/Commitment to clients
Failure to fulfil our legal or contractual obligations to
clients could subject the Group to action and/or claims
from clients. The adverse outcome of such actions/
claims could negatively impact our reputation, financial
condition and/or the results of our businesses.
For example:
§
In accepting client engagements, Group companies
are generally subject to client duty of care obligations.
Failure to satisfy these obligations could result in claims
being made against the relevant operating company.
§
In our Property and Project Management businesses,
we may be responsible for appointing or overseeing
third-party contractors that provide construction
and engineering services. In addition in our Property
Management business we may be responsible for
health and safety at site-level. Failure to discharge
these responsibilities in accordance with our obligations
could result in brand damage and/or claims being made
against the operating companies.
§
In our valuation consultancy businesses, we can be
subject to claims, alleging, in particular the over-
valuation of properties.
The Group has a range of policies in place including
client acceptance, legal and regulatory compliance, data
protection, health and safety, procurement, contractor
management and valuation to mitigate contractual risk.
In particular we have Best Practice groups, policies,
procedures and training which are designed to deliver
the relevant contractual obligations and thereby mitigate
against the risk of such actions/claims being made and
where such claims occur, to limit liability, particularly in
relation to health and safety and consultancy services such
as valuations. Such policies are regularly reviewed.
The Group maintains professional indemnity insurance to
respond to and mitigate the Group’s financial exposure
to any claims. As described below, our strong emphasis
on appropriate business conduct by all our employees,
contractors and associates further mitigates this risk.
6
FAILURE OR SIGNIFICANT INTERRUPTION TO OUR IT SYSTEMS CAUSING DISRUPTION TO CLIENT SERVICE
Strategic objective:
Financial strength/Commitment to clients
Major failures in our IT systems may result in client service
being interrupted or data being lost/corrupted causing
damage to our reputation and consequential client and/
or revenue loss.
There is a risk that a third-party cyber attack on our
infrastructure by a malicious individual or group could be
successful and impact the availability of critical systems.
Specific back-up and resilience requirements are built
into our systems.
Our critical infrastructure is set up so far as is reasonably
practical to prevent unauthorised access and reduce the
likelihood and impact of a successful cyber attack.
Our data centres are accredited to international
information security standards. Our IT strategy is to
diversify our services utilising the cloud and hosting, in
order to avoid a single point of failure.
Penetration testing and vulnerability testing is carried
out regularly.
Business continuity and disaster recovery plans are in place
to cover the residual risks that cannot be mitigated.
We continuously review our resilience to cyber attacks,
implementing new systems and procedures to address
continuously evolving and ongoing cyber threats. Internal
and external assurance programmes provide maturity
assessments applying the NIST maturity Framework and
additional technical reviews of the security measures
in place.
Cyber insurance cover is in place.
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS
continued
35
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Description
Mitigations
Change
from 2023
7
OPERATIONAL RESILIENCE/BUSINESS CONTINUITY
Strategic objective:
Financial strength/Commitment to clients
Significant non-IT events may affect continuity of
service to clients, consequential revenue loss and
reputational damage.
Business continuity plans are in place across our
businesses worldwide to enable us to respond to external
incidents which threaten the continuity of our operations.
Continuity plans encompass a range of events that could
impact on our people or buildings such as pandemics,
terrorist events and natural disasters.
As with most other large international businesses,
remote working capabilities are robust. We have teams
and processes dedicated to crisis management, disaster
recovery and the implementation of business continuity
plans that ensure that these can be activated across key
teams at short notice if so required.
8
BUSINESS CONDUCT
Strategic objective:
Business diversification/Geographical diversification/Commitment to clients
Significant non-IT events may affect business continuity.
We operate in international markets that may present
business conduct-related risks involving, for example,
fraud, bribery or corruption.
Failure by the Group and its employees to observe the
highest standards of integrity and conduct in dealing
with clients, suppliers and other stakeholders could result
in civil and/or criminal penalties, regulatory sanction,
debarring and/or reputational damage.
We have programmes to promote compliance with our
Code of Conduct, particularly in areas of higher risk such
as procurement.
36
Annual Report and Accounts 2024
Description
Mitigations
Change
from 2023
9
CHANGES IN THE REGULATORY ENVIRONMENT/REGULATORY BREACHES
Strategic objective:
Commitment to clients
We are required to meet a broad range of regulatory
compliance requirements in each of the markets in
which we operate.
For example, some of out operations have regulatory
licences:
In the UK, Savills Capital Advisors Limited and Savills
Investment Management LLP are authorised and regulated
by the Financial Conduct Authority (‘FCA’) in respect of
activities conducted pursuant to the Markets in Financial
Instruments Directive (‘MIFID’) and Alternative Investment
Fund Managers Directive (‘AIFMD’).
Savills Investment Management entities are also variously
authorised by the Bank of Italy, MAS in Singapore, BaFin in
Germany, JFSC in Jersey, CSSF in Luxembourg and ASIC
in Australia. Savills Group companies also hold financial
services advisory licences in Japan. Our entities across
the Group employ resources and maintain a framework
of controls aimed at preventing our business being
used to facilitate financial crime, and to comply with
complex financial sanctions regimes which are continually
changing in response to global events.
In addition, some of our service businesses are regulated
by The Royal Institution of Chartered Surveyors (‘RICS’),
for example, Savills (UK) Limited.
Failure to satisfy regulatory compliance requirements
may result in fines being imposed, adverse publicity,
brand/reputation damage and ultimately the withdrawal
of regulatory approvals. We also have a number of key
statutory obligations including the protection of the
health, safety and welfare of our staff and others affected
by our activities. New legislation and the growing scope
of regulation in key areas like data protection, financial
crime and environmental standards are contributing to an
increasing complexity in the regulatory environment.
Our Group Policy Framework, which sets out our standards
for professional, regulatory, statutory compliance and
business conduct, is reviewed regularly.
To support this framework each business has its own
regulatory compliance resources which monitor regulatory
developments and maintain the internal processes and
controls required to fulfil our compliance obligations.
Our compliance environment, at all levels, is subject
to regular review by internal audit and external
assurance providers.
10
ACQUISITION/INTEGRATION RISK
Strategic objective:
Business diversification/Geographical diversification/Strength in Residential and
Commercial markets/Financial strength
The structuring and integration of acquisitions is critical
to realising the benefits targeted. People, systems and
processes are key components.
We apply the Group Acquisitions Policy and procedures
and use professional advisors in the due diligence process,
and allocate responsibility and accountability to individuals
for integration. Post-acquisition reporting ensures the
Board is aware of progress against plan.
11
ENVIRONMENT AND SUSTAINABILITY
Strategic objective:
Commitment to clients/Financial strength
Environment and sustainability matters are a significant
consideration for clients, employees and investors. Failure
to prioritise
Environmental, Social, and Governance
(ESG)
considerations can have significant operational
and
reputational consequences
for any company that
fails to prepare.
Savills offers its clients expert advice on a growing range
of environmental and sustainability matters.
Savills, like all listed companies, has commitments and
targets to meet in accordance with the legislation of the
relevant jurisdictions.
We apply the Group’s Sustainability Policy and employ
appropriately qualified and skilled teams. We are
continuously enhancing our services in this area to ensure
that we can provide clients, employees and investors with
the best advice and information.
Savills has committed to net zero targets: Scope 1 and 2 net
zero by 2030; and Scope 3 (for controlled assets) by 2040.
We collect data and report in accordance with the relevant
legislation and regulatory framework, including TCFD
(Responsible Business pages 60 to 67).
PRINCIPAL & EMERGING RISKS & UNCERTAINTIES FACING THE BUSINESS
continued
Change from 2023:
Up
Down
Unchanged
37
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
VIABILITY STATEMENT
The longer-term viability of the Group is assessed for
a period longer than for the going concern analysis.
In accordance with Provision 31 of the UK Corporate
Governance Code, the Directors have assessed the
Group’s viability taking account of the Group’s current
position and prospects, the Group’s strategic plan, and
the Group’s principal risks and the management of
those risks, as detailed in the Strategic Report on pages
30 to 36. The Group’s emerging risks are also disclosed
in the Strategic Report. This longer-term assessment
supports the Board’s statements on both viability, as set
out below, and going concern as set out on page 163.
Period for assessment
The Directors have determined that a three-year
period to 31 December 2027 is an appropriate
period over which to provide the Group’s viability
statement being consistent with the period covered
by the Group’s strategic plan and the cyclical nature
of property markets. The strategy and associated
principal risks which underpin the Group’s three-year
plan are reviewed by the Directors at least annually.
The Directors also satisfied themselves that they have
the evidence necessary to support the statement
in terms of the effectiveness of the internal control
environment in place to mitigate risk.
Viability assessment and key assumptions
The Board’s assessment of the Group’s viability
comprised a sensitivity analysis which was
undertaken on the three-year plan, including financing
projections, to flex the financial forecasts under a
variety of severe downside scenarios, which involved
applying different assumptions to the underlying
forecast both individually and in aggregate. These
scenarios assess the potential impact from several
macro-economic risks, including a severe global
economic downturn analogous to that experienced
during the Global Financial Crisis in 2008/09. The results
of this sensitivity analysis showed that the Group would
maintain significant available facility and covenant
headroom to be able to withstand the impact of such
scenarios over the period of the financial forecast, as
a result of the resilience and diversity of the Group,
underpinned by a strong balance sheet.
Performance against the three-year plan is monitored
on an ongoing basis, including regular Board briefings
provided by the Heads of the Principal Businesses
on the progress made by those businesses. These
reviews consider both the market opportunity and the
associated risks. These risks are considered within the
Board’s risk appetite framework. The principal risks that
would have the most significant impact on the Group’s
business model, future performance, solvency or liquidity
identified on pages 30 to 36, have been considered as
part of the viability assessment. The Directors continue
to monitor the principal risks facing the Group, including
those that would threaten the execution of its strategy,
its business model, future performance, solvency
and liquidity.
Viability statement
The Audit Committee reviews the output of the viability
assessment in advance of final evaluation by the Board.
Based on the Group’s strong net cash position and
undrawn £360m revolving credit facility, as described in
the Chief Financial Officer’s review, combined with the
assessment explained above and in accordance with the
UK Corporate Governance Code, the Directors confirm
that they have a reasonable expectation that the Group
will be able to continue to operate and meet its liabilities
as they fall due, over the three-year period ending
31 December 2027.
The Directors also considered it appropriate to prepare
the financial statements on the going concern basis as
explained in Note 3 to the accounts.
38
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
Helping both
people and our
environment
to thrive
Climate
Through our advice
to clients and the work
we do directly, we
always seek to add value
through initiatives that
help both people and our
environment to thrive.
Community
People are at the heart of
our business. We aim to
create a lasting positive
social impact on the local
communities which we
impact through the way
we engage with them,
the work we do and the
charitable initiatives we
run to support them.
Culture
We actively foster an
inclusive workplace –
aiming to attract diverse
talent, develop and support
our people, and always
lead by example.
Commitment to 9 UN Sustainable Development Goals
39
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Developing
Talent
Diversity &
Inclusion
Promoting Health
& Wellbeing
Throughout 2024 Savills plc remained committed
to achieving net zero for its operations (Scope 1
and 2) in 2030 and for its value chain (Scope 3)
greenhouse gas (‘GHG’) emissions by 2040.
Savills has near-term carbon reduction targets
validated by Science-Based Targets initiative
(SBTi) as follows:
§
a commitment to reduce absolute Scope 1
and 2 GHG emissions by 72% by 2030 from
a 2019 base year
§
a commitment to reduce Scope 3 GHG
emissions from purchased goods and services
by 51.6% per million GBP of value added by
2030 from a 2022 base year
§
a further commitment to reduce Scope 3 GHG
emissions from assets held under discretionary
mandates within Savills IM funds by 51.6% per
square meter within the same timeframe.
Savills also has a supplier commitment to influence
stakeholders to work towards decarbonisation.
In addition, Savills has a comprehensive
Sustainability Consultancy offering.
CLIMATE CHANGE
CLIMATE
COMMUNITY
CULTURE
PEOPLE
Affordable
and Clean
Energy
Quality
Education
Good Health
and Well-
Being
Climate
Action
Sustainable
Cities and
Communities
Gender
Equality
Responsible
Consumption
and Production
Life on
Land
Decent Work
and Economic
Growth
Environmental, Social and Governance (ESG)
strategy and goals
Savills ESG strategy is set at the Group level and is
then implemented across our Principal Businesses and
through them at country level. Our ESG strategy aligns
to the nine UN Sustainable development Goals where
we believe we can make the most difference. It is
developed and recommended by management and
endorsed at Board level and is then implemented
across our global operations.
Group ESG Committee
Our ESG Committee, comprising senior representatives
from our Principal Businesses and central teams, co-
ordinates our ESG strategy. The TCFD workstream
runs across the Principal Businesses.
§
Responsible (with the Group Risk Committee) for
overseeing climate-risk assessment and all other
aspects of the Group’s ESG agenda
§
Tracks and monitors the delivery of the Group-wide ESG
targets which are aligned to the nine UN Sustainable
Development Goals we measure our performance against
§
Chair: Group Legal Director & Company Secretary
§
Lead: Group Sustainability Director.
40
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Climate
Savills recognises the need for
urgent action by real estate owners
and occupiers to help address
the climate crisis and support
the transition to a greener, more
resilient economy.
41
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Despite this progress there remains much to do and
we remain focused on progressing our decarbonisation
journey. Savills Group Net Zero Transition Plan can be
found here: https://pdf.savills.com/documents/Group-
Net-Zero-Transition-Plan-2024.pdf
Net zero action
Scope 1 and 2
Some of the key actions to reduce our Scope 1 and
2 GHG emissions within our Net Zero plan include
transitioning to renewable energy, investing in energy
audits to identify efficiencies such as installing LED
lighting, transitioning company-owned and leased cars
from petrol and diesel to electric vehicles (EVs) and
agreeing ‘green’ leases. The progress made on these
actions over the year is summarised below.
Renewable energy tariffs
Further progress on obtaining certified renewable
energy tariffs was made within 2024. For the UK,
renewable electricity tariffs account for 88% of supplies,
while in CEME 53% of electricity consumed in offices
now has a green tariff. The Savills IM business has green
tariffs covering 87% of electricity consumption. Green
tariffs are generally unavailable across markets in Asia
Pacific, with around 8% of the electricity consumption
of Savills Asia Pacific offices now serviced by green
tariffs. (Note: the methodology employed to recognise
certified green energy tariffs has changed this year as
part of moving to a new data management system;
as a consequence some tariff percentages may differ
from those reported in the prior year.)
Our strategy in action
The Board is responsible overall for managing ESG
and climate-related risks and realising opportunities,
as detailed in the Governance section of the TCFD
Disclosures (page 60). A summary of our ESG strategy
and our Sustainability Policy can be found here:
(https://www.savills.com/why-savills/environmental-
social-and-governance.aspx)
The delivery of our commitment to achieving net zero
for our operations (Scope 1 and 2) in 2030 and for its
value chain (Scope 3) greenhouse gas (GHG) emissions
by 2040 remains a key management focus. As part of
this focus, Savills worked with the Science Based Targets
initiative (SBTi) to validate near-term decarbonisation
targets with Savills consequently being recognised
by the Race to Zero and Business Ambition for 1.5°C
campaigns. Savills near-term SBTi targets are:
§
A commitment to reduce absolute Scope 1 and 2 GHG
emissions 72% by 2030 from a 2019 base year
§
A commitment to reduce Scope 3 GHG emissions
from purchased goods and services 51.6% per million
GBP of value added by 2030 from a 2022 base year
§
A commitment to reduce Scope 3 GHG emissions
from client assets managed in a discretionary basis
by Savills IM to 51.6% per square meter within the
same timeframe.
In 2024, we were pleased to receive SBTi validation for
our near-term Net Zero targets. Against these targets,
Savills greenhouse gas (GHG) Scope 1 and 2 target
of 72% reduction is on track with a further reduction
achieved during the year, so that at the end of 2024
GHG emissions were 31.6% lower than our 2019 baseline.
2024 Highlights
§
Savills ESG activity was
recognised at 16 different award
events globally (page 49)
§
Delivery of Savills Greenhouse
Gas emissions Scope 1 and 2
targets of a 72% reduction by
2030 remains on track with
current reduction of 31.6%
against the 2019 baseline
§
Savills IM Assets under
Discretionary Management
(AUM) emissions reduced
from 130,369 tonnes in 2022
to 100,706 this year, which is a
22.8% decrease in emissions
§
Increased renewable energy
tariffs across global office
portfolio, for example CEME
which has 53% of the leased
office spaces served by green
tariffs (up from 38% in 2023)
§
Increased use of energy efficient
LED lighting, for example, in
North America, LED is now
estimated to be in place for 62%
of total office space
§
84 Green Building certifications
are now held at our office
locations worldwide
§
69 environmental events
undertaken across our global
office locations during the year
§
Savills UK advised clients on the
planting of 3.2 million trees.
42
Annual Report and Accounts 2024
Climate
continued
RESPONSIBLE BUSINESS
continued
Savills Scope 1 and 2
emissions targets of a 72%
reduction by 2030 remain on
track with current reduction
of 31.6% against baseline.
Savills IM Assets under
Discretionary Management
(AUM) emissions are reduced
from 130,369 tonnes in
2022 to 100,706 this year,
which is a 22.8% decrease
in emissions.
Electric vehicles (EV)
Savills continues to transition company-owned and
leased vehicles from petrol and diesel to EV, where
infrastructure allows. Progress has been made again
this year; in CEME 11% or 51 of 448 of the vehicles are
now EV and 42% are now either EV or hybrid. While
in the UK, 37% of the vehicles are EV consisting of
seven cars, there is one hybrid vehicle and a remaining
11 cars are petrol or diesel, which we are working to
transition, as vehicle contracts allow. In Asia Pacific, the
transition of the vehicle fleet to EV continues with some
challenges around charging infrastructure. However,
Australia, New Zealand, Korea and Taiwan now use
mostly hybrid vehicles and in Singapore around 40% of
leased vehicles are EV. For Savills IM, 14% of the leased
vehicles are EV. North America has no company-owned
nor leased vehicles, so have focused their Net Zero
efforts in other areas. In addition, the UK employee
benefit scheme to support the purchase of a personal
EVs has been extended to the full employee base after
a pilot programme.
LEDs and equipment replacement
In the UK, lighting surveys are underway across 50
offices to better understand LED coverage; in addition
an LED requirement has been incorporated within Savills
UK office fit-out guidance. Part of Savills IM’s Net Zero
Transition Plan includes actions to review and increase
LED lighting, as part of this it is estimated that 64%
of the Savills IM office space now uses LEDs. In North
America, LED is in place for 62% of total office space.
In Asia Pacific, eight out of 12 countries are using 100%
LED lighting in their main offices, including Malaysia
which moved into a new office in 2024 featuring LED
lighting. In CEME, 79% of occupied floor area is now
estimated to have LED coverage. In the UK more
efficient window display screens were rolled out with an
estimated 2% saving and gas surveys were undertaken
on four residential offices to understand the costs
and complexities of moving away from gas.
Energy audits and green leases
For Savills IM, seven offices completed a Net Zero
Carbon audit or undertook Net Zero Carbon initiatives
during the year. Savills remains committed to including
green lease provisions in material new office leases and
renewals whenever possible, and has been successful
in incorporating several improvements towards our
decarbonisation efforts through this process during
the year.
43
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
held at our office
locations worldwide
84
69
GREEN BUILDING CERTIFICATIONS
undertaken within our global
office locations during the year
Scope 3
For Scope 3 reductions, key actions within our Net Zero
plan are to engage with our corporate suppliers, and to
work with our people to enable the knowledge and skills
needed to move towards decarbonisation collectively.
We also need environmental management systems
such as ISO14001 or Green Building Certifications to
help support our journey. Our progress for the year is
summarised below.
Supply chain carbon
Savills aims to ensure responsible management of
environmental and social issues, and safe and fair
working conditions within our corporate supply chain
through engagement with our service chain partners.
As part of this, to help further support supply chain
engagement during 2024, our Group Responsible
Supplier Charter was launched (https://pdf.savills.com/
documents/Group-Responsible-Supplier-Charter-Nov-
2024+FINAL.pdf). Savills corporate supply chain makes
up just over 20% of our Scope 3 carbon emissions. As
part of our efforts to decarbonise, Savills has worked
to engage with its top suppliers by spend to encourage
decarbonisation of our value chain. We have asked
many of our corporate suppliers in each of our Principal
Businesses to sign up to our third part supplier portal
and submit their company carbon emissions. There is still
much work to be done on this agenda, however, last year
saw a significant increase in the level of engagement
undertaken with suppliers.
ISO14001 and green building certifications
The UK completed an extension to scope of its ISO14001
audit, which certified a further 9 UK offices, meaning
that 112 offices and 10 divisions are fully certified, with a
further 5 UK divisions partly certified. ISO14001 is now in
place for Poland and Ireland, which also have ISO9001.
Savills Spain also achieved ISO14001 for its Arquitectura
business and is currently implementing this across
its wider business along with ISO5001, ISO9001 and
ISO27001. Savills Property Management business
in Stockholm also holds ISO14001, while other countries
in CEME are considering implementing ISO14001 for
next year.
Each Principal Business where Savills operates now has
substantial coverage of Green Building certifications for
the occupied offices, covering BREEAM, WELL, LEED,
Energy Star and equivalents. In total, for our global office
locations, 84 Green Building certifications are now in
place, and we continue to build upon this each year.
ENVIRONMENTAL EVENTS
44
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Savills Earth and wider
Sustainability Consultancy
Net Zero or
Carbon Pathways
BREEAM
In Use and
109
BREEAM
Assessments
38
As partner of GRESB, Savills
has supported multiple clients
on their GRESB submissions
with a total Assets Under
Management of over £11
billion for 16 portfolios across
11 countries, attaining two
5-star ratings, two 4-star
ratings and five 3-star ratings
Contributed to 115 press pieces
in 64 different national, regional
and trade publications on ESG
and sustainability-related topics
and produced 31 blog posts
Through practical advice we support clients to develop
strategies and working practices that turn sustainability targets
and commitments into reality and embrace the change needed
to engender resilience. The teams cover various disciplines
advising on Sustainable Design, Low-Carbon Energy, Social
Value and Operational Sustainability. Global highlights of
where we supported clients in 2024 include:
>1,000
compliance audits to support
ISO14001 certifications
NET ZERO PATHWAYS COVERING
241
Natural Capital team
sold £15 million of
nutrient neutrality
credits in UK and
over £1 million in
Biodiversity Net Gain
(BNG) units
1,410
(38 single-asset,
9 multi-asset pathways)
units
45
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FINANCIAL STATEMENTS
Client’s Passivhaus homes to
achieve planning permission
for 7 of the top 12 UK
shopping centres by size
187
SUSTAINABLE DESIGN CONSULTANCY
SERVICES SUPPORTED
planning applications
46
pre-planning
projects
11
graduates
and
8
work placements
supported
7
Several advisory roles were
supported by UK Social Value
team including: Social Value
UK Advisory Board (Chair),
Social Value Creative Estuary
Board, Land Aid Grants
Committee, Social Value
Leadership Group, GLA High
Streets for All Advisory Board
and LPA DEI Committee
THE SECOND SAVILLS EARTH PODCAST
SERIES WAS DOWNLOADED OVER
10,800
SUSTAINABILITY ADVISORY
ADVISED CLIENTS ON THE PLANTING OF
3.2
WELL Certifications and
23
13
million
trees
Sustainability
strategies
41
Social Value
projects
48
times
CRREM
Analysis
projects
80
ESG Due Diligence or
Performance reports
56
LEED
projects
21.2
GW
SUPPORTED CLIENTS TO GENERATE
SAVILLS SUPPORTED
of energy
storage
of renewable energy
and create
2.7
GW
46
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Our chosen SDGs
The Group’s ESG strategy aims to achieve a positive impact on the environment and society, while maintaining
robust governance measures and is aligned with nine of the 17 UN Sustainable Development Goals (‘SDGs’).
We adopted these nine SDGs as these are most relevant to the real estate sector and our business and have
agreed the underlying objectives to support our delivery against these in our Principal Businesses. Here are specific
examples of initiatives in place across our businesses during 2024 in relation to each of the nine SDGs.
QUALITY EDUCATION
We aim to create opportunities for growth
and development for our people and
within the communities that we impact.
What we did in 2024
Savills Group:
We deliver learning programmes
to reinforce and support the development of our
values and behaviours; for example, in relation to
ESG, financial crime risk, our Code of Conduct, data
security and data management. We have developed
training to over 1000 leaders to reinforce the need
to embed our values and behaviours. We continue
to provide learning and development in all core
areas of management and leadership, client and
business development, personal effectiveness, and
professional and technical capabilities.
GENDER EQUALITY
We actively promote gender equality
and aim to create a diverse and inclusive
environment for all.
What we did in 2024
Savills Group:
International Women’s Day (IWD)
was celebrated globally again this year. For example,
Savills IM celebrated with IWD panel discussions.
Savills UK’s Gender Group hosted a webinar on
Driving inclusion, a Brunch with external speaker
from Money Matters and a Lunch & Learn with Major
Sue Chittock about women in the army.
In CEME 11 countries across the region participated
in International Women’s Day with activities
ranging from webinars, external speakers, diversity
charters, community volunteering and external
networking events.
Savills Australia hosted IWD events, including panel
discussions and internal presentations, alongside the
White Ribbon Accreditation.
AFFORDABLE & CLEAN ENERGY
We aim to maximise energy efficiency,
and switch to using renewable energy
across our workspaces.
What we did in 2024
Savills UK:
Savills UK Energy and Infrastructure team
supported clients to generate 21.2 GW of renewable
energy, create 2.7 GW of energy storage and
support provision for 1.6 GW energy demand. Savills
also advised on 241 Net Zero or Carbon Pathways
during the year.
GOOD HEALTH & WELL-BEING
Our goal is to provide healthy workplaces,
encourage healthy lifestyles and raise
awareness of mental health & wellbeing.
What we did in 2024
Savills Portugal:
The ‘Empowering Lab’, an innovative
initiative by Savills Portugal, has been honoured with
the prestigious National Sustainability Award in the
‘Health and Well-being in Organisations’ category.
Developed by a dedicated team at Savills, the project
encompasses various activities such as workshops
and masterclasses covering topics including stress
management, effective communication, time
and conflict management, as well as aspects of
nutrition, sleep, and physical exercise. This accolade
acknowledges Savills dedication to fostering
a workplace where everyone possesses the
necessary tools to thrive.
47
OVERVIEW
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SUSTAINABLE CITIES AND COMMUNITIES
We work with government, national
and local communities to create
sustainable places.
What we did in 2024
Savills Investment Management:
This year, Savills IM’s
Net Zero & Sustainability Lead, actively contributed
to the Better Building Partnership’s (BBP) Net Zero
Carbon Working Group. Savills IM presented its Net
Zero Audits strategy to the BBP group, showcasing
a detailed scope template developed through
insights from a previous audit’s and a global net
zero tendering process. This initiative streamlines
the appointment of net zero carbon consultants
and reinforces Savills IM’s commitment to industry
knowledge sharing. Savills IM is implementing these
audits at both client fund and asset level, enabling
actionable budgets and plans to accelerate net
zero delivery. By refining processes, integrating
lessons learned and building partnerships with
delivery partners, Savills IM continues to drive
impactful, scalable initiatives in alignment with
its net zero targets.
DECENT WORK AND ECONOMIC GROWTH
We are committed to operating
responsibly and providing a fair, safe
and diverse culture.
What we did in 2024
Savills UK:
Savills Head of Diversity & Inclusion
was named Head of Diversity & Inclusion of the
Year at the British Diversity Awards. The awards
celebrate leading diversity and inclusion champions,
recognising achievements over the past year across
ethnicity, age, disability, sexual orientation, gender
identity and religious beliefs. Savills UK Ethnicity
group was also nominated for Outstanding Ethnicity
Network of the Year.
RESPONSIBLE CONSUMPTION
AND PRODUCTION
We seek to reduce our
environmental impacts through
active operational management and
responsible procurement.
What we did in 2024
Savills Asia:
Savills Singapore’s Energy &
Sustainability Management team working alongside
their client Singapore Pools were presented with
two awards at the 2024 ESG Business Awards, the
Energy Efficiency Retrofit Programme Award and the
Sustainable Infrastructure Award. This achievement
reflects the team’s dedication to creating impactful
green solutions for their clients in Asia. Savills
Singapore’s Energy & Sustainability Management
team designed and retrofitted Singapore Pools
Building’s HVAC systems with more efficient
equipment and assisted the client in attaining Green
Mark Platinum certification for the building.
CLIMATE ACTION
Work continuously to reduce carbon
emissions and report in accordance
with our Task Force for Climate-related
Disclosure obligations.
What we did in 2024
Savills Group:
In the UK lighting surveys are currently
underway across 50 offices to better understand
LED coverage, in addition an LED requirement has
been incorporated within fit out guidance. Part of
Savills IM Corporate Business’s Net Zero Transition
Plan includes plans to review and increase LED
lighting, as part of this it is estimated that 64% of
the Savills IM office spaces is using LEDs. In North
America, LED is in place for 62% of total office space.
In Asia, eight out of 12 countries are using 100% LED
lighting in their main offices, including Malaysia which
moved into a new office in November featuring LED
lighting. In CEME, 79% of occupied floor area is now
estimated to have LED coverage.
LIFE ON LAND
We expect our suppliers to operate
responsibly and seek to protect biodiversity
and ecosystems.
What we did in 2024
Savills Group:
To help further support supply chain
engagement during 2024, our Group Responsible
Supplier Charter was published: https://pdf.savills.com/
documents/Group-Responsible-Supplier-Charter-Nov-
2024+FINAL.pdf.
Savills corporate spend supply chain makes up just
over 20% of our Scope 3 carbon emissions. As part of
our efforts to decarbonise, during the year Savills have
worked to engaged with their top spend suppliers to
encourage decarbonisation of our value chain. We have
asked many of our corporate suppliers in each of our
Principal Business to sign up to our third-party supplier
portal and submit their company carbon emissions.
There is still much work to be done on this agenda,
however, last year saw a significant increase in the level
of engagement undertaken with suppliers.
48
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Climate
continued
Environmental events and awareness
Around 5 June 2024, various global activities were
organised to promote engagement for World
Environment Day. Teams across Savills IM offices
participated in activities such as volunteering at
community gardens in Madrid, nature walks in parks
across Milan, Stockholm, London, Singapore and
Hamburg, and a community clean-up in Amsterdam.
Educational events included a beekeeping workshop
in Warsaw and supporting farms and their sustainable
practices in Luxembourg and Sydney. In Savills UK,
a World Environment Day competition ran, raising
the profile of Savills Sustainability strategy, 22 offices
participated. In CEME 17 activities were held with ten
countries participating, ranging from beach-clearing,
sunflower growing, water awareness, seed planting, an
art competition and recycling workshop. There were
also eight client events including ‘Bee aware’ in Sweden,
a briefing on ESG and hotel developments in the
Netherlands and Poland ran a podcast. In addition, five of
Spain’s retail and shopping centres shared environmental
messages or carried out activities such as making bird
boxes. Overall, Savills hosted 69 environmental events
across its global office locations during 2024.
For Earth Hour Savills UK undertook a switch-off of non-
essential IT and lighting in many of its offices. Numerous
offices in Asia Pacific also participated, switching off
non-essential lighting to promote awareness about
energy efficiency. Savills China held 11 environmental
events including desk-cleaning drives and participation
in Earth Hour, while Savills Taipei implemented forest
protection programmes, enhanced recycling efforts, and
introduced zone-specific lighting timers to conserve
energy. Savills Singapore collaborated with the
Building and Construction Authority to deliver
workshops on sustainable technologies and green
building design. Savills Australia partnered with GPT in
Brisbane to implement a metal can recycling initiative.
While in CEME, a re-turn government scheme ran as part
of National bike week in Ireland.
Environmental Social and Governance (ESG)
training programmes
Approximately 92% of CEME employees have completed
the Region’s MyLearning ESG module. Additional country-
specific training has also taken place, content includes:
Human Rights & Modern Slavery Protection training in
Spain; ‘Lunch and learn’ sessions in Ireland on building
certifications and on ESG ‘fundamentals’ in Poland.
Meanwhile in the UK, for new starters a 30-minute in-
person sustainability learning is included in the induction
programme. UK Division employees also have access to
an enhanced training pathway as appropriate, for example
Property Management use ‘Sustainability School’ to
provide further ESG knowledge support.
In Asia Pacific, an ESG Awareness module has been
completed across all countries in local languages. In
addition, ESG training sessions were delivered to client-
facing teams during the year. In North America new ESG
training was launched in August, to provide foundation
learning for all employees. The training provided a
comprehensive overview of North America’s corporate
sustainability and ESG commitments and communicates
the crucial role that employees play in ensuring Savills
remains a sustainable business. Over the year, Savills
IM provided a blend of legislative ESG training, external
industry courses and avenues for advanced skill
development, supporting strategic alignment with
ESG objectives.
49
OVERVIEW
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GOVERNANCE
FINANCIAL STATEMENTS
and its client Singapore Pools
won the Energy Efficiency Retrofit
Programme Award and the
Sustainable Infrastructure Award at
the 2024 ESG Business Awards
CEME
Globe St.
Women of
Influence
Awards
3
APAC
NORTH AMERICA
UK
SAVILLS NORTH AMERICA
EMPLOYEES RECEIVED
HIGHLY REGARDED ESG-
RELATED AWARDS IN
2024 INCLUDING:
7
Savoy’s Most
Influential
Executives in
America Award
1
Connect
CRE-Women
in Real Estate
Awards
2
Crain’s
Notable Black
Executives
Award
1
Mahon Point Shopping
Centre won the Best
Energy Achievement
in Retail Award
won the ‘real estate’ category at
the LC Sustainability Awards 2024
SAVILLS ITALY
SAVILLS IRELAND’S
won the National Business
Sustainability Award in the
‘Health and Well-being in
Organisations’ category
SAVILLS PORTUGAL
SAVILLS ENERGY SUSTAINABILITY
MANAGEMENT TEAM
Savills UK Rural and Projects
Infrastructure team secured
3 awards including: Best
Sustainability Initiative
recognised at the
University College of Estate
Management’s (UCEM)
annual Built Environment
Apprenticeship
‘Head of D&I of the Year’ at the
British Diversity Awards
HEAD OF SAVILLS UK D&I WINS
2
TIMES GRADUATE EMPLOYER
OF THE YEAR FOR THE
Consecutive year
18
th
SAVILLS APPRENTICES
received two runners-up awards
at the prestigious 2024 Young
Modeller Award at the 2024 CIBSE
Building Simulation Awards
SAVILLS UK EMPLOYEES
2nd in RateMyApprenticeship’s
Best 100 Employers 2024-2025 list
SAVILLS RANKED
Social Mobility lead
won the ‘Rising
Star’ award at
Inspiring Women in
Property Awards
SAVILLS UK’S
AT THE NATIONAL GRID
ELECTRICITY TRANSMISSION
(NGET) AWARDS;
2024 ESG Awards
50
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Environmental case studies 2024
UK
Our UK Sustainability Enablers network has formed
to help spark conversation about sustainability
related matters amongst their colleagues,
with the overarching aim of encouraging
more environmentally and socially responsible
operations. Throughout 2024, our UK business
continued to develop this network. The network has
colleagues who are passionate about sustainability
and act as a key point of contact in each of our
offices. The UK now have 150 Enablers, with the
aim of at least one representative per office. Group
meetings every six months are held to share best
practice, challenges and opportunities. Examples
of initiatives implemented by Enablers include:
§
Energy cards left on desks that are not
switched off overnight
§
World Environment Day competition
§
Office sustainability newsletter
§
Green travel week, challenging people to take
a sustainable commute
§
Fundraising wreath making initiative
§
Training session on easy wins.
Savills Group
Savills have a global commitment is to be a
Net Zero business. To achieve this and also in
accordance with the Science Based Targets
initiative (SBTi) commitments we have adopted,
Savills has publicly committed to half the
greenhouse gas emissions associated with
corporate ‘purchased goods and services’ by 2030.
To support this during 2024, Savills launched a
Group Responsible Supplier Charter, available on
our website (https://pdf.savills.com/documents/
Group-Responsible-Supplier-Charter-Nov-
2024+FINAL.pdf)
Savills are working with each of our Regional
Businesses to ensure that their key suppliers
acknowledge our Responsible Supplier Charter
and, where possible, provide their company carbon
emissions via our chosen supplier portal. During
2024, our businesses in Asia Pacific, North America
and UK & EMEA, together with Savills Investment
Management have been engaging with key suppliers
to understand their decarbonisation journey and
commitments as well as their carbon footprint.
Since our suppliers have a key role in helping us
achieve our sustainability targets, we aim to work
with organisations that share our values and strive
to meet our standards. The Responsible Supplier
Charter outlines the commitments we ask our
corporate suppliers to uphold, this Charter does not
apply to the client or project-based supply chains.
Climate
continued
51
OVERVIEW
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FINANCIAL STATEMENTS
Europe
As part of the World Environment Day, Savills
Portugal welcomed 40 young students from ICCO
school (ages 3-5) to our offices and conducted
an engaging lesson on sustainability. Following
this, the children enjoyed a delicious snack on the
Savills terrace and participated in a fun recycling
activity to test their newly acquired knowledge.
This initiative highlights Savills dedication to the
community, especially the younger generations,
by fostering early awareness, environmental
consciousness, and positive habits.
Investment management
Savills Investment Management’s Global
Engagement Days involve colleagues coming
together to support one particular event around
the world. The below examples showcase
how different offices got involved with World
Environment Day 2024:
§
Amsterdam:
The Amsterdam team took part in
a community cleanup event
§
Hamburg:
A team nature walk to a micro-forest
grown using the Miyawaki method
§
London:
A donation to the Royal Parks, who
protect the wildlife and habitats of London’s
Royal Parks. The London team also took part in
a nature walk around local Regents Park
§
Luxembourg:
An organic farm tour promoting
sustainable eating habits, alongside a donation
to Natur&Ëmwelt
§
Madrid:
Volunteering at Fundación AlaPar,
helping the up-keep their community garden
and collect vegetables. Afterwards, a paella
competition was held using fresh produce from
the garden
§
Singapore:
Completed a litter picking walk
around The Botanic Gardens
§
Sydney:
Volunteering at Pocket City Farm, an
urban farm which works to educate and connect
communities through fair access to food. The
team also learned the art of pickling to reduce
food waste
§
Warsaw:
A beekeeping workshop was held in
our Warsaw office.
52
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Asia
Earlier this year, in a drive to reduce waste, Savills
Malaysia organised a campaign: ‘E-WasteErase: Clean
Up for a Green Tomorrow’. Running for three weeks,
this campaign was designed to promote responsible
waste management. Savills Malaysia encouraged
its teams to donate their old and unused electronic
devices from home by setting up a collection point
at the Savills Malaysia offices. The campaign aided
collection and recycling of various electronic waste
items. Collected items went to the IPC Recycling and
Buy Back Centre in Mutiara Damansara. This effort
resulted in 0.36 kg of metals saved from landfill
and equated to a saving of 224 kg of embodied
greenhouse gas emissions. The campaign showcases
Savills Malaysia’s commitment to mitigating
environmental impacts through proper disposal
and recycling of electronic devices.
Savills Singapore’s Energy and Sustainability
Management team, working alongside their client
Singapore Pools, received two awards at the 2024
ESG Business Awards: The Energy Efficiency
Retrofit Programme Award and The Sustainable
Infrastructure Award.
This achievement reflects the team’s dedication to
creating impactful green solutions for their clients
in Asia. Savills Singapore’s Energy & Sustainability
Management team designed and retrofitted Singapore
Pools Building’s HVAC systems with more efficient
equipment and assisted the client in attaining Green
Mark Platinum certification for the building. Singapore
Pools was established by the Singapore Government in
May 1968 to provide safe and trusted betting to counter
illegal gambling. As a not-for-profit organisation much
of Singapore Pools’ profits go to fund a wide range
of causes in social service, community development,
sports, the arts, education and health.
Environmental case studies 2024
continued
Climate
continued
53
OVERVIEW
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FINANCIAL STATEMENTS
Our disclosures
Greenhouse gas emissions
Our greenhouse gas (‘GHG’) emissions statement
includes all emission sources required under the
Companies Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013 and the Companies
(Directors’ Report) Regulations 2018 for the financial
year to 31 December 2024.
Reporting methodology
We report our GHG emissions using the revised
edition of the GHG Protocol Corporate Accounting
and Reporting Standard, the GHG Protocol Scope 2
Guidance, the GHG Protocol Corporate Value Chain
(Scope 3) Standard and the UK Government Guidance
on Streamlined Energy and Carbon Reporting (‘SECR’).
Our reporting boundary is based on an operational
control approach and includes emissions from Savills plc
and Group subsidiaries with a majority shareholding.
Where actual data becomes available or there is better
proxy data available for more accurate estimation,
we restate individual office data points (for example,
electricity consumption of one location) of the previous
year at a threshold of 20% difference, i.e. we shall
not restate previously reported data if the difference
between reported data and actual data is less than 20%.
We will also restate the emissions if the cumulative effect
of the differences is more than 5% of the Scope affected
(e.g. multiple small variances totalling more than 5%).
We might also restate data as a result of acquisition or
disposal of sites/subsidiaries during the reporting year,
subject to the specific condition of the acquisition or
disposal. Where an acquisition or divestment is material,
with the inclusion or removal of the entity’s data resulting
in a variation that exceeds ± 5% of the original, historical
data will be restated where reasonably attainable.
Scope 1 and 2 emissions
Reported Scope 1 emissions include emissions from
fuel consumption by the Group’s owned and leased
vehicles, refrigerant and the combustion of fuels within
our offices. Scope 2 emissions are reported using both
‘market-based’ and ‘location-based’ methodologies
and relate to the consumption of purchased electricity,
heat, steam and cooling in offices where Savills
has operational control. Savills has a network of
representatives and associates in over 700 locations
globally. Out of the 700 locations, 265 fall under the
reporting Scope as Savills has operational control, i.e.
authority to introduce and implement our operating
policies. The majority of other offices, over 400, are
associates that are not consolidated into the Group
accounts and are outside the organisational boundary.
Some remaining offices are serviced offices and
therefore outside the operational boundary.
Scope 1 and Scope 2 ‘location-based’ emissions were
calculated using regional or national emission factors
published by the United Nations Statistics Division, the
UK Government GHG Conversion Factors for Company
Reporting, the US Environmental Protection Agency, the
Australian Department of the Environment & Energy and
other national agencies and internationally recognised
guidelines for each reporting period. Under the Scope
2 ‘market-based’ method, no emissions were accounted
for electricity supplies backed with local Renewable
Energy Certificates (‘RECs’), such as Renewable Energy
Guarantees of Origin (‘REGO’) in the UK and the EU. This
GHG accounting principle follows the Scope 2 Quality
Criteria set out by the GHG Protocol Scope 2 Guidance.
Scope 2 ‘market-based’ emissions from energy use
with no RECs in place were calculated using regional or
national residual mix emission factors where available,
or grid average if no residual factors are published.
To coordinate the collection of GHG emissions
data across our global operations, a network of
Environmental Reporting Officers (‘EROs’), has
been established, reporting datasets to the Group
Sustainability Reporting Team on a biannual basis.
A third-party environmental reporting tool was used
to facilitate data collection, aggregation and data
quality review. GHG emissions data was collated using
actual activity data wherever possible. In some instances,
where actual activity data was not readily available, we
calculated our operational emissions using a range of
standard carbon accounting methods in an estimation
hierarchy. For this financial year, 21% of reported
emissions were based on estimates using this method.
For sites where there is partial data for the period, the
data is extrapolated based on the time period with no
data. For sites where there is no data in the previous
month, historic data from the previous year is used
to extrapolate the relevant time period. If sites have
no current or historic actual data we use benchmarks
based on energy consumption per square metre of
floor area relative to the rest of the region.
In addition to absolute GHG emissions metrics, we
report two standardised intensity metrics that enable
comparisons of our regional performance and year on
year results. These are Scope 1 and 2 ‘market-based’
emissions per £ million of revenue and Scope 1 and 2
‘location-based’ emissions intensity of our offices per
square metre floor area. The floor area GHG intensity
ratio excludes emissions from fuel consumption of
our business owned and leased vehicles to enable
direct comparison of operational energy efficiency
of our premises.
54
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Scope 3 emissions
In 2024, we undertook our fourth assessment of the
Group’s Scope 3 emissions. Reported Scope 3 upstream
emissions include purchased goods and services,
capital goods, waste generated in operations, water
consumption, business travel in vehicles not owned,
leased or controlled by the Group, employee commuting
and fuel and energy-related emissions that are not
captured in Scopes 1 and 2. Purchased goods and
services include all expenditure on services (e.g. cleaning,
insurance, IT, professional services) and consumable
products or goods (e.g. food and stationery). Capital
expenditure includes all expenditure on durable products
or goods that were acquired within the Group’s 2024
financial year (e.g. office furniture). The methodology
used to estimate the supply-chain emissions from
purchased goods and services and capital goods is
based on the Exiobase
1
environmentally extended
input-output (‘EEIO’) dataset. EEIO combines economic
information about the trade between industrial sectors
with environmental information and the emissions
arising directly from those sectors.
Financial expenditure data was collected across all
regions. In some cases, where data only covers 10
months of the year, estimates were used to extrapolate
this to 12 months. Business travel data quality and
availability varies across the business. Business travel
emissions were calculated based on actual activity data,
where possible. Where activity data was not available,
expenditure data was used and business travel emissions
were calculated using the Exiobase model.
During 2022, we rolled out surveys to assess employee
commuting activity across all countries where Savills
has operations. We had responses from over 5,000
employees and calculated commuting emissions using
the UK Government GHG Conversion Factors for
Company Reporting and US EPA emissions factors.
This data has been combined with current employee
numbers and emissions factors to update the results for
2024. We plan to repeat the commuting survey next year
to see if travel habits have materially changed. Waste,
water, fuel and energy-related emissions are collected
using the same data collection process that is used for
Scopes 1 and 2, as described above.
Reported Scope 3 downstream emissions relate to
Savills IM Assets under Management (‘AUM’) and cover
all discretionary funds and mandates
2
excluding funds
in liquidation. While Savills IM has discretionary control,
it is important to note that a significant number of
the asset leases are of a ‘full repairing and insuring’
nature, which presents a challenge when it comes to
data collection and opportunities for energy reduction
interventions. Savills IM emissions for 2024 were 88%
estimated using the Deepki ESG Index. The prior year
data has been restated using actual energy consumption
collected data where this could be obtained, with 44%
estimation. Where data was found to be incomplete
for a specific utility for a particular building area (e.g.
landlord-controlled or tenant-controlled areas), the
actual data was extrapolated to provide full coverage.
For assets where no actual consumption data was
available, energy use and the associated GHG emissions
were estimated based on industry benchmarks
3
. Savills
IM has set an objective of collecting 75% of actual data
from AUM by 2025 and is working with property and
asset managers, tenants and ESG consultants to achieve
this data coverage.
Going forward, we plan to further refine our Scope 3
analysis by implementing a strategy to improve data
collection processes across our global operations. This
will be focused on providing activity data particularly
for business travel, improving the efficiency of data
collection processes through systemisation and reducing
the need for extrapolation where possible. In 2025 we
are planning to investigate alternative sets of emissions
factors for assessing our procurement and capital
investment emissions. We aim to select a methodology
that will publicly release updated emissions factors
more frequently. In addition to this, we are investigating
methods to incorporate supplier-specific emissions data
we have started to collect, so that we can track savings
generated through engagement with suppliers.
1.
EXIOBASE3 is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. It is attributed to the EXIOBASE Consortium and can
be found at www.exiobase.eu.
2.
Discretionary mandates apply to situations where Savills IM is granted discretion by the third party to make investment decisions (such as which assets
to buy and sell, in addition to asset management activities such as development, fit-out, refurbishment and leasehold transactions) without seeking prior
approval from that third party.
3.
Benchmarks used were from the Deepki ESG Index, available through their platform to which Savills IM has access as their new ESG data collection and
management tool since January 2024.
Our disclosures
continued
Climate
continued
55
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Performance and trends
In 2024, our absolute Scope 1 and 2 ‘market-based’
emissions totalled 5,559 tonnes CO
2
e, which is a 9.8%
(601 tonnes CO
2
e) reduction against our 2023 emissions.
This reduction is associated with a 7% decrease in fuel
use from company-owned and leased vehicles and
an increase in uptake of green tariffs. The Group used
24,302 MWh of energy, a 1.4% decrease on last year,
comprising a 2.3% decrease in electricity consumption
and a 0.4% increase in fuel use.
On an intensity basis, our Scope 1 and 2 ‘location-based’
GHG emissions per office floor space has reduced 4.4%
since 2023 and 28.6% from our 2019 baseline. Our GHG
financial intensity metric, expressed as GHG emissions
per £million revenue, has seen a reduction of 16%
and 46% respectively. These metrics reflect continual
improvement in managing our environmental impacts
and associated carbon emissions through office retrofits,
EV upgrades, behavioural changes, and procurement of
renewable electricity.
Key measures implemented and underway to reduce
our Scope 1 and 2 GHG emissions include: LED lighting
replacements, energy audits, promoting behavioural
changes to eliminate energy wastage, procurement of
renewable electricity and replacement of our owned and
leased vehicles with zero or low-emission alternatives.
For specific examples of this go to ‘Net Zero Actions
section’ (page 41). In 2024, we also published our
Group Net Zero Transition Plan (https://pdf.savills.com/
documents/Group-Net-Zero-Transition-Plan-2024.pdf)
detailing our strategy towards long-term decarbonisation
and SBTi GHG reduction targets. We’re currently on
track to achieving our 72% reduction in Scope 1 and 2
emissions by 2030 target with a current reduction of
31.6% against our 2019 baseline.
In 2024, actual or estimated Scope 1 and 2 emissions
data was reported for all offices where we have
operational control. Reported energy and GHG
emissions data include estimates where actual data
was unavailable. Due to a significant effort this year
to engage with landlords to collect actual data, the
proportion of estimated data has decreased by 14%
when compared to 2023; it remains a key priority to
strive for improved data accuracy.
The 2024 Scope 3 emissions totalled 202,434 tonnes
CO
2
e, including our upstream emissions from business
operations and the downstream AUM emissions where
Savills IM have discretionary control. These AUM
emissions were 100,706 tonnes CO
2
e which contributed
50% of Scope 3 emissions reflecting a decrease of
22.8% on 2022. The decrease is attributed to both a
reduction in floor area of discretionary assets and also
decrease in emissions intensity of the assets managed
in this category.
Our upstream Scope 3 emissions totalled to 101,728
tonnes CO
2
e, an uplift of 2.5% since 2022. These
emissions are fairly consistent, in relation to the prior
year, as a large proportion of these emissions are
associated with emissions from procurement and
employees commuting patterns. Both of these areas
are challenging to address, however, during 2024 we
have made significant efforts to engage with our top
spend suppliers and encourage decarbonisation of
our supply chain.
56
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Corporate GHG emissions,
tonnes CO
2
e
2024
2023
2022
2021
2020
2019
change vs 2019
Scope 1 (Direct)
1,923^
1,921
1,691
1,869
1,794
1,775
8.3%
Scope 2
(Indirect, market-based)
3,637^
4,240
4,989
4,783
5,386
6,358
-42.8%
Total Scope 1 and 2
1
5,559^
6,160
5
6,679
6,652
7,180
8,133
-31.6%
Scope 2
(Indirect, location-based)
4,956^
5,329
5,462
5,280
5,847
6,719
-26.2%
GHG financial intensity
ratio (tonnes CO
2
e /
£ million revenue)
2.31
2.75
2.91
3.10
4.13
4.25
-45.6%
GHG intensity ratio of our
offices (tonnes CO
2
e / m
2
)
2
0.034
0.036
0.039
0.040
0.042
0.048
-28.6%
2024
2023
2022
2021
2020
2019
change vs 2022
Scope 3 upstream,
estimate
3
101,728
104,662
99,201
55,223
nr
nr
2.5%
Scope 3 downstream,
estimate
4
100,706
113,315
130,369
118,544
nr
nr
-22.8%
Total Scope 3
202,434
217,977
229,570
173,767
nr
nr
-11.8%
Grand Total
207,993
224,137
236,249
180,419
nr
nr
-12.0%
Corporate energy use, MWh
2024
2023
2022
2021
2020
2019
change vs 2019
Total energy use
24,302^
24,640
24,006
22,864
24,568
25,938
-6.3%
Data coverage
(offices reporting data)
265
(100%)
281
(100%)
276
(100%)
279
(100%)
285
(100%)
282
(92%)
nr
Notes:
1.
Total Scope 1 and 2 emissions and GHG financial intensity ratio are calculated using the market-based Scope 2 emissions.
2.
GHG intensity ratio of our offices is calculated using the location-based Scope 2 emissions.
3.
This disclosure is partial; as we continue to work to improve our understanding of our Scope 3, our final figures are expected to be higher. With exception of
Savills IM AUM, downstream emissions covering carbon relating to client services are excluded.
4.
The Scope 3 downstream emissions for all years have been restated; historically we have used data from the previous reporting period to report on current
year due to the lags in data collection for Savills IM AuM. As our data collection and benchmarking methodologies have improved, we are now able to report
for current year using 2024 collected data and benchmarks.
5. The 2023 Scope 1 and 2 results have been restated due to improvements in data availability from some regions.
^
We engaged Grant Thornton UK LLP to provide independent limited assurance over selected data highlighted in the above table with a ^ symbol using the
assurance standards ISAE 3000 (Revised) and ISAE 3410. Grant Thornton has issued an unqualified opinion over the selected data and the full assurance
report can be found on our website here (https://www.savills.com/why-savills/grant-thornton-limited-assurance-report-2024.pdf).
Our disclosures
continued
Climate
continued
57
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Scope 3 2024 Performance by category
5
GHG Emissions category
tonnes CO
2
e
%
Purchased goods and services
52,194
26%
Capital goods
2,862
1%
Fuel and energy-related activities (not included in Scope 1 & 2)
2,044
1%
Waste generated in operations
362
0%
Business travel
7,604
4%
Employee commuting
36,662
18%
Savills IM Assets Under Management
100,706
50%
Total
202,434
5
100%
5. This disclosure is partial, as we continue to work to improve our understanding of our Scope 3, our final figures are expected to be higher. With the exception of
Savills IM AUM, downstream emissions covering carbon relating to client services are excluded.
2024 Performance by region
Region
Energy use
GHG emissions Scope 1 and 2
GHG emissions Scope 3
MWh
%
Intensity
ratio, tonnes
CO
2
e / m2
tonnes CO
2
e
%
tonnes CO
2
e
%
Asia Pacific
4,250
18%
0.039
1,749
32%
44,646
22%
Europe, the Middle East & Africa
8,956
37%
0.036
2,004
36%
19,562
10%
North America
3,407
14%
0.035
1,122
20%
6,274
3%
United Kingdom
6,610
27%
0.028
572
10%
28,930
14%
Savills IM
1,079
4%
0.046
112
2%
103,022
51%
Total
24,302
100%
0.034
5,559
100%
202,434
100%
58
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Our disclosures
continued
Climate
continued
Performance against Science Based Targets initiative (SBTi) targets
This is the first year that we are able to report on progress against our near-term SBTi targets after having them
approved in February 2024:
SBTi Targets by 2030
Unit
2024
Baseline
Progress against
baseline
Scope 1 & 2:
72% reduction against 2019 baseline
Tonnes
CO
2
e
5,559
8,133
31.6%
reduction
Scope 3 procurement:
51.6% reduction against 2022 baseline
Tonnes
CO
2
e/£
million value
added
31.36
30.93
1.4%
increase
Scope 3 AUM:
51.6% reduction against 2022 baseline
kg CO
2
e/m2
GIA
27.47
32.13
14.5%
reduction
We are currently on track to achieving our absolute 72% reduction in Scope 1 and 2 emissions by 2030 target with
a current reduction of 31.6% against our 2019 baseline. We are making good progress against the Scope 3 Assets
Under Management target with a 14.5% reduction against the 2022 baseline. The Scope 3 Procurement target is
more challenging to demonstrate progress against at this time as the emissions are embedded in the supply chain.
Emissions have increased 1.4% against this intensity metric. However, we have made significant efforts throughout
2024 to engage with our top spend suppliers and encourage decarbonisation of our value chain. We have asked
many of our corporate suppliers in each of our Principal Businesses to sign up to our third-party supplier portal and
submit their company carbon emissions. There is still much work to be done on this agenda, however, last year saw
a significant increase in the level of engagement undertaken with suppliers.
59
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Non-financial and sustainability information statement 2024
The table below sets out where stakeholders can find information in our Strategic Report that relates to non-financial
matters detailed under section 414CB of the Companies Act 2006.
Reporting
requirement
Relevant Policies and standards
Read more about our impact, including the
principal risks relating to these matters
Page
Environmental
matters
Environmental Policy
GHG emissions
TCFD reporting
Principal and emerging risks and
uncertainties facing the business
53 to 58
60 to 67
30 to 36
Employees
Health and Safety Policy
Equality and Diversity Policy
Code of Conduct
Whistleblowing Policy
Group Chief Executive review – People
Business model
‘People’ section of Responsible business
‘Culture’ section of Responsible business
‘People and culture’ principal risk in
the Principal and emerging risks and
uncertainties
s.172 (1) Companies Act statement – People
Corporate Governance Report
Directors’ Remuneration Report
20 to 26
10 and 11
74 to 80
72 to 82
30 to 36
103
83 to 128
129 to 160
Human rights
Code of Conduct
Modern Slavery Statement
‘Culture’ section of Responsible business
72 to 82
Social matters
Code of Conduct
Modern Slavery Statement
Tax Strategy
Responsible business
38 to 82
Financial crime
(anti-money
laundering,
anti-bribery
and corruption
and compliance
with financial
sanctions)
Code of Conduct
Whistleblowing Policy
Anti-Bribery and Corruption Policy
‘Culture’ section of Responsible business
Corporate Governance Report
72 to 82
129 to 160
Outcome of non-
financial policies
and standards
Carbon emissions reporting
Gender Diversity reporting in accordance
with the Corporate Governance Code 2018
Responsible business
Corporate Governance Report
38 to 82
129 to 160
Principal risks
Principal and emerging risks and
uncertainties facing the business
30 to 36
Business model
‘Our business model’ section of the
Strategic Report
10 and 11
Due diligence
processes
in place in
pursuance of
promoting non-
financial policies
and standards
All employees required to read and adhere
to the Code of Conduct
Whistleblowing reports reviewed by
the Board
Anti-corruption, anti-bribery and anti-
financial sanctions training and monitoring
82
60
Annual Report and Accounts 2024
Real estate and associated infrastructure is currently
responsible for close to 40% of global carbon dioxide
emissions, with energy demand from the building
sector expected to grow by 50% by 2050. Savills is
focused on climate-related risks and working with its
clients, suppliers and the local communities on which
its operations impact, to deliver a more sustainable
future. Savills recognises the need for urgent action
by real estate owners and occupiers to address the
climate crisis and rapidly transition to a greener more
resilient economy. This TCFD Disclosure outlines the
climate-related risks and opportunities that Savills has
identified and the associated actions and budgets
in place to, respectively mitigate and position the
Group to realise these.
In this report we provide climate-related financial
disclosures consistent with the UK Climate-related
Financial Disclosure Regulations. We have referred
to associated non-binding guidance and also to the
guidance issued by the Task Force on Climate-related
Financial Disclosures. An extended TCFD document,
which provides additional information beyond the
disclosures required by Regulation, is also available at
savills.com. This additional information includes a table
outlining the TCFD consistency and improvement points
within our 2024 Report.
Governance
The Board is responsible overall for managing climate-
related risks and realising opportunities, as detailed
in the Governance section (page 30). The Board is
supported in this respect by the Group Executive
Board (GEB), which is responsible for implementing
climate-related risk management plans, addressing
climate-related threats to Savills business model and
for identifying and realising opportunities. In addition,
the Group Risk Committee and Group Environmental
Social & Governance (ESG) Committee, supported by
the Savills TCFD Working Group, are responsible for
overseeing climate risk assessment and other aspects
of Savills corporate sustainability and ESG agenda and
reporting into the GEB. The Board and GEB both meet
at least quarterly. The Group ESG Committee meets at
least bi-annually and the Savills TCFD Working Group
meets at least annually. The Board is updated on progress
against goals and targets regularly, and at least annually
considers the progress made against our goals.
The Board and Board Committees are informed about
climate-related issues, including both climate risks and
opportunities, via written reports, formal presentations
and oral updates from the Group Legal Director &
Company Secretary and the Group Sustainability
Director. Both the Group Legal Director & Company
Secretary and the Group Sustainability Director have
climate-related actions within their KPIs, as do GEB
members and the Executive Directors, including the
Group CEO. Climate-related issues, including associated
risks and opportunities, are also considered when the
Board is reviewing strategy, budgets, major plans of
action, proposed investments, capital expenditure
and acquisitions.
An example of how this is embedded in decision-
making at an operational level is that all new office
leases or extensions require sign-off from a Sustainability
perspective, as well as financial perspective.
Sustainability and ESG, specifically climate risks and
opportunities, are also discussed within Board meetings
and, by Group Risk Committee, as part of the wider risk
review process, with timely delivery of the Group’s Net
Zero targets also included in the Risk Registers of the
Principal Businesses, consideration of which is a key
element of management decision-making.
As above, the Savills TCFD Working Group and Group
ESG Committee report into the GEB and through it
to the Board and, as part of this reporting, highlight
climate-related items and associated actions (page
30 – to board descriptions/ board structures). The
process by which the Group ESG Committee and Group
Management are informed about climate-related issues is
through the ESG Committees in each Principal Business,
which either have TCFD as a key agenda item or which
have their own TCFD working groups. ESG Groups in the
Group’s Principal Businesses (being Savills UK, Savills
CEME, Savills Asia Pacific, Savills North America and
Savills Investment Management (‘Savills IM’)) develop
and manage programmes in those businesses within
the Group’s overall TCFD framework. The process
adopted by each Principal Business to manage physical
and transition risk is typically for the management
teams within the relevant business to oversee any
corresponding action or agenda points made within
the relevant ESG Committee or via designated TCFD
action trackers. Key climate-related actions and risks are
monitored and managed through these ESG Committees
which respectively report to the Group ESG Committee
and the Savills TCFD Working Group, with key messages
then further disseminated to management across
the Group as appropriate. The Heads of the Principal
Businesses have overall climate-related responsibilities
for their businesses; with progress by Principal Business
against agreed targets monitored and overseen by the
Group ESG Committee, which reports via the Group
Legal Director & Company Secretary, to the GEB
and the Board.
Task Force on Climate-Related Financial Disclosures (‘TCFD’)
RESPONSIBLE BUSINESS
continued
Climate
continued
61
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Savills TCFD Working Group is supported by Willis
Towers Watson (‘WTW’), who assisted each Principal
Business collectively to review climate-related risk during
2024, following which each Principal Business was able
to re-confirm the actions required to mitigate the climate
risks and realise opportunities specific to it, as well as the
financial impacts associated.
Strategy and risk management
Interface between climate-related risks and
overall risk management
Savills Group processes for managing climate-related
risks are outlined in the Governance section above,
and are also captured in Savills wider risk management
approach and enterprise risk management system ‘ERM’)
(page 30 – wider AR risk management process). For
more information on the Group’s material existing and
emerging risks see the Principal and Emerging Risks
section (page 32 – Principal and emerging risks section).
The materiality assessment for TCFD is based on an
integrated view of the impact and likelihood of occurrence
for each risk and opportunity. Climate-related risks
continue to be evaluated as part of the Group’s risk
identification, review and assessment process for principal
and emerging risks which is undertaken biannually by the
Group Risk Committee (page 30 – wider risk management
process). The TCFD materiality process is also integrated
within the Group’s wider risk management processes;
the Group’s Risk Register has high-level summary risks
covering ‘Environment and Sustainability’ and ‘Corporate
ESG incl. Diversity & Inclusion’ with further details on
climate-related issues managed within specific TCFD and
ESG risk documentation and through the Risk Registers
of the Principal Businesses. Climate-related risks and
opportunities are integrated into current decision-making
and strategy formulation, for example, in creating and
reviewing strategies for lower carbon, more energy
efficient operations. Further examples of Savills initiatives
to improve the energy efficiency of our operations are
in the ‘Environment – Our strategy in action’ section
(page 41).
The Savills TCFD Working Group, responsible for
overseeing the climate scenario risk assessment, includes
the Group Risk Director and the Group Sustainability
Director within its membership. The climate risk
assessment adopts other elements used in the broader
Savills risk assessment categories including:
§
description of the risk and time horizon
(identification);
§
impact-likelihood rating (the evaluation enabling
prioritisation);
§
mitigating actions and controls (mitigation); and
§
future action plans & risk owner (monitoring).
As part of this process, each risk is given an inherent and
residual risk score and a ‘go-forward mitigation plan’ is
developed, which is then cascaded down and managed
accordingly by the relevant business or teams. The
results are integrated into ERM reporting and ongoing
identification, assessment and management of climate-
related risks.
For the 2024 workshops, physical risk assessment drew
on modelling using WTW’s Climate Diagnostic tool,
whereas transition risk elicited risk ratings from internal
subject experts, including representatives from the
Principal Business and members of the Savills TCFD
Working Group through the following process:
1.
Research and review of assumptions for the scenarios
2.
Research and update of risk articulation to
incorporate developments from last assessment
3.
Workshop, involving cross-function set of
internal subject experts to agree on impact,
likelihood, timeframes and mitigations for risks
and opportunities.
The intention is for a full review, similar to this, to be
undertaken every three years. In the intervening period
the risks and opportunities identified are considered
each year by the Savills TCFD Working Group, with
any required updates included in the latest annual
TCFD report. Following the TCFD review workshop
in 2024, the Savills TCFD Working Group revised
the overarching Group risks and opportunities, as
outlined below in Summary of risks and opportunities
identified section (page 63 – Summary of Risks and
Opportunities identified).
Scenario analysis
In order to explore the business risks and opportunities,
in 2024, Savills, with the support of WTW, undertook
climate scenario analysis against two scenarios for
climate risk. The two scenarios have average temperature
rises of 1.5°C and 4°C respectively and are designed to
identify physical and transition risks together with the
time horizon in which they are most likely to occur and
the potential financial impact on Savills strategy. Physical
risks stem from changes in the natural environment, such
as heat stress or windstorms. In contrast, transition risks,
which can also bring opportunities, emerge because
of the shift towards a low-carbon economy. These
transition risks can be further classified into policy and
legal, technology, market and reputational risks. Short-,
medium- and long-term time horizons of 2030, 2040
and 2050 were selected, respectively. These were chosen
based on strategic planning horizons for the Group,
as well as the timelines over which climate risks are
currently expected to manifest.
62
Annual Report and Accounts 2024
Task Force on Climate-Related Financial Disclosures (‘TCFD’)
continued
RESPONSIBLE BUSINESS
continued
Climate
continued
Transition risks were not assessed past 2040 due to a
lack of credible assumptions on which to base analysis.
Similarly, physical risk was only assessed on short- and
long-term time horizons reflecting the availability of
supporting data to differentiate these time horizons
from a medium-term time horizon. Group materiality
incorporates a combined view of the considered
impacts across the Principal Businesses.
For this assessment climate scenario analysis was
utilised; these climate scenarios are based on the IPCC’s
Representative Concentration Pathways (RCP) from their
Fifth Assessment Report (AR5), mapped to the latest
IPCC AR6 report’s Shared Socioeconomic Pathways
(SSPs). There is high degree of certainty that some
combination of climate risks will materialise, however the
exact outcomes are uncertain and dependent on short
term actions by the global community. Scenario analysis
provides a flexible ‘what if’ framework for exploring
risks, allowing for economic outcomes and financial risks
under a range of different future pathways.
1.5°C Scenario
Emissions follow the IPCC SSP1 – RCP1.9/2.6 scenario,
which is associated with 1.5°C temperature rise from pre-
industrial times by the end of the century. The scenario
assumes stringent carbon taxation, stricter building
codes and public and private investment in low emission
technologies. The scenario outlines high transition risk
in the short term associated with aggressive mitigation
actions to reduce emissions. As a result of the transition,
physical risks are less severe and somewhat similar to
the current climate.
> 4°C Scenario
In this high emissions pathway, emissions follow the IPCC
SSP5 – RCP8.5 scenario, which is associated with +4°C
temperature rise from pre-industrial times by the end of
the century. The scenario assumes low transition risk in
the short and long term as the world fails to transition
to a low-carbon economy, while physical risks become
increasingly frequent and severe in the long term.
Summary of risks and opportunities identified
Materiality scoring for Savills TCFD risks and
opportunities adopted the below scoring criteria:
§
Event will probably occur in most circumstances,
>70% – ‘Likely’
§
Event should occur at some time, 20 – 70% – ‘Possible’
§
Event could occur at some time, but exceptional,
0 – 20% – ‘Unlikely’
The following financial scales have been used to
determine the materiality of the identified climate
risks and opportunities, which are in line with our ERM
process. Potential to impact % proportion of Group
underlying profit before tax:
§
‘Very Low’: <2%
§
‘Low’: 2 – 5%
§
‘Medium’: 5-10%
§
‘Severe’: >10%
When the risks and opportunities were identified
in 2024 by each Principal Business, we found
commonalities between them all. Group materiality
therefore incorporates a consolidated view of the
considered impacts across the Group. Along with the
risk and opportunity identification workshop held in
2024, assessment outcomes were considered by the
Savills TCFD Working Group and with the Principal
Businesses in order that climate-related risks or
opportunities with a higher relevant risk could be
identified and actioned accordingly.
63
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Risk type
Risk
Risk description
Impact assessment
Risk score
Timeframe
most material
Physical risk assessment
Short
Long
Acute
Increased
frequency and
severity of
extreme weather
events, such
as cyclones,
hurricanes, heat
waves, wildfires
and floods
The financial
impact
associated to
contents damage
and business
interruption for
acute hazards.
Due to the leasehold tenure of Savills offices, it is
anticipated that there will be minimal financial impact to
Savills in terms of losses arising out of property damage
caused by physical climate risk. However, there may be
some increase in costs caused by acute perils leading
to damage to contents, equipment, or utilities in offices,
possible business interruption if employees are temporarily
unable to work from impacted offices and increased
physical risk insurance costs and/or risk retentions due to
the potential non-availability of “ground-up” insurance.
Low
Low
Chronic
Longer-term
shifts in weather
patterns, which
may cause
increasing
frequency of
heavy rain and
windstorms,
rising sea levels
and heat stress
The impact
of operational
disruption,
including
possible
downtime,
due to chronic
hazards.
Low
Low
Timeframe
most material
Transition risk assessment
Short
Medium
Policy
Pricing of
greenhouse gas
emissions
Higher costs
as a result of
new policies e.g.
carbon taxation.
The risk explores
regulatorily
enforced
carbon tax and
policy tariffs.
The costs associated with this risk relate to carbon pricing
through carbon taxes and other policy tariffs.
Very
low
Very
low
Enhanced
climate-related
disclosure
requirements
and reporting
obligations
Increased
compliance
costs in response
to enhanced
regulator and
investor climate-
related disclosure
and reporting
requirements.
Savills global presence may expose the business to the
cost of meeting new environmental reporting obligations
(e.g. CSRD from EU). The financial impact of increased
climate-related disclosures is not expected to exceed a
‘low’ level, as Savills has established processes in place
to track and meet regulatory reporting requirements.
Low
Low
Changes
in building
efficiency
standards
(Real Estate)
Disruption to
Savills operations
and services, as
well as higher
compliance
costs, due to
stricter building
efficiency
standards.
Savills offices are leased, although Savills may incur
additional costs when renting new spaces or increased
costs from landlords transitioning to new standards.
The impact is anticipated to be minor for both short
and medium-term horizons.
In relation to assets held in funds managed by Savills IM,
ensuring that fund assets meet future minimum standards
may result in additional asset management costs at fund
level, however, this cost is burdened by investors in the
given funds, so the overall risk to Savills is deemed to
be ‘very low’.
Very
low
Very
low
64
Annual Report and Accounts 2024
Risk type
Risk
Risk description
Impact assessment
Risk score
Timeframe
most material
Transition risk assessment
Short
Medium
Reputation
Investment risk
Increased
stakeholder
concern or
negative
stakeholder
feedback.
Current investor sentiment suggests a continuing
increasing focus on ESG considerations. In Savills terms,
the risk is assessed as ‘low’, reflecting the mitigation
plans that Savills has in place, moving to ‘very low’ for
the medium term.
Low
Very
low
Employee risk
Impact of Savills
approach to
sustainability on
ability to attract
and retain the
best talent.
Employees may increasingly consider Savills approach to
sustainability and climate change as a significant factor in
accepting offers of employment and/or deciding to remain
with Savills (in terms of for example job satisfaction).
As a result, higher turnover of employees could occur
from 2030 if Savills does not meet its 2030 sustainability
targets. Reflecting the plans and mitigations in place, this
risk is deemed to be ‘low’ in the short and long terms.
Low
Low
Market
Loss of clients
Failure to
adapt to clients
sustainability
concerns and
values resulting
in loss of
business.
As more of Savills clients commit to becoming Net
Zero by 2030 or 2050, they will increasingly demand
sustainability expertise to help them achieve these goals.
If Savills fails to respond to these developments in client
focus it could see reduced income and lose market share.
Mitigation is in place for this risk.
Low
Low
Specialist skills
shortage
Demand for
green skilled
workers
outpacing
availability.
As the global economy shifts to a more sustainability
focused landscape, there is a risk that there will be a
shortage of appropriately skilled workers, as a result of the
rapid increase in demand for ‘green’ skills outpacing the
supply of workers with the necessary expertise. As Savills
already has a strong sustainability offering and continues
to invest in expanding its sustainability teams and through
training across its business, this risk is assessed as being
‘low’ in the short term and ‘very low’ in the medium term.
Low
Very
low
Technology
Substitution
of existing
technologies for
lower emission
options
Increased capital
expenditure
requirements
in order to
transition to new
lower emissions
technology to
satisfy market
expectations
and facilitate the
meeting of Savills
decarbonisation
targets.
Risk relates to the scale and cost of investment associated
with decarbonisation, for example the cost of phasing
out inefficient systems (e.g. lighting, HVAC systems, gas
heating and other appliances or equipment). Costs are
also associated with adoption of smart building solutions,
renewable energy tariffs and electric vehicles. In a Savills
context the costs associated with this risk are deemed
to be ‘low’ in the short term and ‘very low’ in the longer
term reflecting the leased nature of Savills office portfolio
and for example the already established requirement that
Savills offices take advantage of ‘green’ energy solutions
(e.g. ‘green electricity tariffs’).
Low
Very
low
Opportunity assessment
2030
2040
Market
Access to new
markets and
development
and/or expansion
of low emission
goods and
services
Opportunity
for increased
revenue and
market share due
to greater client
and regulatory
demand for
sustainable
buildings and
services.
Increasing client and regulatory demand for sustainable
buildings and services could enable Savills to increase
market shares, building on its well established ESG service
provision. Savills has an opportunity to become a leading
provider of real estate sustainability and wider climate
transition related consultancy services. This opportunity is
deemed to have ‘medium’ impact in the long term.
Low
Medium
Task Force on Climate-Related Financial Disclosures (‘TCFD’)
continued
RESPONSIBLE BUSINESS
continued
Climate
continued
65
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FINANCIAL STATEMENTS
Evaluation of resilience
1.5 Degrees – Risks and opportunities
Under the 1.5°C scenario, Savills strategy is assessed
as being resilient to the impacts of both physical and
transition risks of a low-carbon economy, with most risks
assessed as ‘very low’ or ‘low’. Savills assessed that the
opportunity presented was ‘medium’ in the longer term
in terms of new revenue streams that could be generated
for example, from greater client and regulatory
demand for sustainable buildings and the expansion of
sustainability consultancy services. The most material
transition risks under this scenario are assessed on
average as being ‘low’ in 2030 and ‘low’ or ‘very low’
in 2040 and are as follows:
1.
Reputation:
there is a risk of brand/reputational
damage and stakeholder concern/negative feedback
if sustainability expectations are not met;
2.
Market:
there is a risk of revenue loss if Savills is
unable to meet client requirements for real estate
services incorporating sustainability considerations
and if service providers should not have the
necessary expertise;
3.
Technology:
there is a risk of existing products and
services being substituted with lower emissions
options with a consequent reduction in revenues if
Savills is unable to meet evolving client requirements.
In terms of the below 1.5°C scenario for physical
risks, there was modelled to be a ‘low’ risk, for which
mitigation is in place.
4 Degrees – Risks and opportunities
Only physical risks were assessed under the high emission
(>4°C) scenario. The increase in frequency and severity of
the physical perils assessed increases under this scenario.
Savills risk for some perils remains the same whilst others
increased slightly, however overall both acute and chronic
risks were considered to be ‘low’ in terms of the analysis
undertaken. In relation to Savills IM, assets held on behalf
of investors in its discretionary managed funds have some
exposure to high flood risk and moderate storm risk, and
these risks are projected to increase in the long term.
To build-in resilience, Savills IM is undertaking detailed
assessments of higher-risk assets currently held within
its discretionary managed funds.
These assessments include EU Taxonomy aligned
adaptation plans. Savills IM has also published its
‘Approach to Climate Resilience’, using the Better Buildings
Partnership climate resilience guidance; this includes
the development of a toolkit to ensure adaptations to
individual assets support city level resilience measures.
Where adaptation measures are not able to be
implemented, Savills IM will consider divesting from these
assets, however, this is considered a last resort option.
Savills has identified that it will further reduce its
exposure to these risks and look to realise potential
opportunities through the following actions:
§
remaining committed to Group goals of Net Zero
for our Scope 1 and 2 carbon emissions by 2030
and for our Scope 3 emissions by 2040. Separately
Savills has Science-Based Targets (SBTi) validated
near-term decarbonisation targets, with the aim
of being consistent with a no greater than 1.5°C
temperature increase;
§
Savills will continue to invest further in the
development of the Group’s client sustainability
offering across its Regional Businesses in particular
by building out the ‘Savills Earth’ offering, and our
energy and sustainability combined services. This
will be complemented by appropriate learning
and development programmes to ensure that
knowledge of climate-related risks is embedded
in all relevant teams to allow Savills teams to meet
client requirements; and
§
Savills will continue to invest in technology solutions
and strategic partnerships with, or acquisitions of
firms offering climate change-related services and
solutions both to better serve its clients, changing
demands and to reduce its own carbon footprint.
TCFD Risk mitigation and adaptation budgets
The Savills TCFD Working Group used the 2024
workshop findings summarised above to analyse the
resilience of Savills business model and strategy to
climate change, taking into consideration different
climate-related scenarios. In addition, consolidating the
estimates provided by the ESG Groups in the Principal
Businesses, the TCFD Working Group developed financial
costing in relation to risk mitigation for TCFD, which is
outlined below (for the avoidance of doubt excluding
costs in relation to assets managed by Savills IM under
the terms of its discretionary investment management
appointments). The assumptions applied in developing
these cost estimates are in particular highly sensitive to
changes in regulation, energy costs and offset costs.
TCFD is integrated into Savills wider financial planning
processes. Any factors underpinning the risks or
opportunities which are interdependent and could
impact on Savills ability to create value over time and
deliver its growth plans are considered and addressed
accordingly, following the processes outlined in the TCFD
Governance section above. During 2024, actions relating
to TCFD have been undertaken within each of the
Principal Businesses; for example, actions relating to the
implementation and delivery of net zero plans and ESG
learning and development programmes for employees.
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Annual Report and Accounts 2024
The below figures represent an estimated forecast costing of risk mitigation and adaptation plans included within
financial and business plans, set against estimated total Savills cost projections, over the “medium-term” (i.e. the
period from 1 January 2025 to 31 December 2029). As the mitigation and adaptation actions include both physical
and transition risk the costs are based on a combined view considering both scenarios outlined above.
Regional area /
business
TCFD-related costs for
risk mitigation covering
period from start of 2025
up to end 2029.
Presented as % of total
cost base over the
‘medium term’
I
TCFD-related costs for
risk mitigation covering
period from start of 2024
up to end 2029.
Presented as % of total
cost base over the
‘medium term’
Explanation of TCFD Mitigation and adaptation budgets.
2024
2023
UK
0.07
0.08
Example actions budgeted for include:
§
Annual increase in insurance premiums, attributed
to climate change
§
Increased M&E to ensure climate control
within offices
§
Actions relating to Regional net zero plans, to
minimise carbon offsetting
§
ESG training for employees
§
Transitioning company cars to EVs
§
Regional monitoring of emerging regulation
§
Implementation of Internal and external
communication strategies
§
Support for individual office initiatives
§
Development of in-house talent.
APAC
0.02
0.05
N America
0.03
0.02
EME
0.31
0.26
Savills IM
0.26
0.18
Group Total
0.1
II
0.1
Total estimated cost is rounded and inclusive of
estimated off-set costs.
III
I.
For comparison purposes, a total Group forecast cost base was estimated covering a five-year period based on business plans.
II.
Underlying budget figures were rounded and are estimated for a five-year period and are therefore subject to change over time.
III.
A shadow internal price on carbon is under consideration by the Group; in the interim, for the purposes of this report the assumed cost of carbon
off-sets at 2030 was £150 per tonne of CO
2
e.
Estimates have also been developed for potential value of the climate-related opportunity which was identified
over the ‘short’ and ‘medium’ terms. The financial figures relating to the climate market changes and associated
opportunities are subject to continuous review and are in particular highly sensitive to market developments and
are commercially sensitive and, therefore, have not been reported in detail. However, these provide significant
additional revenue opportunity, with the value of the opportunity estimated to significantly outweigh the total
costs of mitigating climate change-related risks.
Task Force on Climate-Related Financial Disclosures (‘TCFD’)
continued
RESPONSIBLE BUSINESS
continued
Climate
continued
67
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STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Metrics and targets
The methodology for target setting and progress tracking, including the metrics which are outlined below, is that
targets are proposed and then progress considered within both the Group ESG Committee and the TCFD Working
Group, with the outcomes from these reviews being recommended to the GEB and Board for adoption, and then
managed, as appropriate.
As outlined above, the process to manage physical and transition risk is typically for the teams within each Principal
Business to project manage any corresponding actions agreed by the relevant ESG Committees or highlighted through
designated TCFD action trackers. Metrics used by Savills to assess climate-related risks and opportunities in line with
Group strategy and the Group risk management process include:
Risk type
Target
2024 Progress
Further information
Policy &
Legal
Greenhouse Gas
(GHG) emissions for
absolute Scope 1,
Scope 2
The Scope 1
and 2 target of
72% reduction is
on track with a
current reduction
of 31.6% against
the 2019 baseline.
GHG metrics are summarised within the GHG
reporting section of this report (page 53). This metric
is monitored to check exposure to GHG emissions
and, therefore, future carbon prices along with link to
success against Savills net zero targets.
SBTi targets:
progress made
against our three
near-term targets
Savills have made
progress against
their validated near-
term SBTi targets
and disclosed their
performance.
SBTi target progress is summarised within the GHG
reporting section of this report (page 58).
Technology
Monitor proportion
of total energy
purchased
from renewable
sources (%)
The proportion
of total energy
purchased from
renewable sources
in 2023 was
40%, in 2024 this
changed to 48%.
Savills continues to work to increase the number of
renewable tariffs utilised, where they are available
globally. Read more on this within the Responsible
Business section (page 38).
Market
Expenditure and
investment deployed
toward climate-
related risks and
opportunities (£)
These figures
are subject to an
annual review.
Budgets for mitigation costs 2025 up to end 2029
for risks identified are outlined within the table above
(page 66).
Reputation
Savills operations
with a Net Zero
Transition pathway
in place: to maintain
100% coverage
100% coverage.
Savills is implementing a Group Net Zero Transition
Plan which covers the global operations (https://pdf.
savills.com/documents/Group-Net-Zero-Transition-
Plan-2024.pdf), in addition each Principal Business has
its own Net Zero roadmaps against which progress is
formally reviewed by management twice a year.
Performance on material climate-related issues is linked into remuneration considerations, forming part of the KPIs
which are reviewed at annual employee appraisals and, therefore, linked to bonus allocation. This covers key staff
responsible for climate-related issues, including, but not limited to, the Group Chief Executive Officer, Group Chief
Financial Officer, Group Legal Director & Company Secretary and the Group Sustainability Director.
68
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Community
People are at the heart of our
business. We aim to create a
lasting positive social impact
on the local communities
which we impact through
the way we engage with
them, the work we do
and the charitable
initiatives we undertake
to support them.
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FINANCIAL STATEMENTS
2024 Highlights
§
Over 21,600 voluntary and pro
bono hours given during the
year across Savills
§
£1.5million donated by the
Group and combined Regional
Businesses to charities with
over 495 charitable causes
supported globally
§
Savills recognised at 16
different award events globally,
notably, seven Savills North
America employees received
prestigious ESG related awards
(page 49)
§
78 Diversity and Inclusion
events were across our global
office network
§
Savills hosted over 86 mental
health events
§
Savills Hong Kong became a
signatory to both the Racial
Diversity & Inclusion Charter
for Employers and the Good
Employer Charter 2024 and
Savills France, Savills Germany,
and Savills Netherlands
committed to Diversity Charters.
Each year, a range of social and community-focused
initiatives are undertaken by Savills worldwide. Every
employee is encouraged to provide social value through
volunteering, fundraising or pro bono activity. In North
America, around 80% of employees contributed to
office-wide events, while in Asia 3,649 volunteer sessions
were given. In CEME 1,358 colleagues were involved in
volunteering or fundraising initiatives while in Savills IM
a further 138 were recorded for volunteering activities
this year. In the UK, employees contributed 13,868
social value hours, covering volunteering, fundraising
and pro bono activity. 9,993 of these hours were
volunteering. Savills teams also advised on planting
of 3.2m trees and undertook 241 Net Zero or Carbon
Pathways. The Group and combined Regional Businesses
also donated over £1.5m and over 495 charitable causes
were supported globally.
Here are just some of the initiatives we are very proud
to have been part of in 2024:
21,600
£1.5m
voluntary or pro
bono hours were
undertaken during
the year across Savills
donated by the
Group and combined
Regional Businesses
70
Annual Report and Accounts 2024
Community
continued
UK
Savills is a strategic partner of LandAid, the
property industry charity working to end youth
homelessness, as well as a founding partner of
LandAid’s pro bono scheme. Savills Sustainability
team run monthly meetings to identify projects that
Savills can support LandAid charities on.
Each year, LandAid organises a SleepOut event,
the purpose of which is to raise awareness of the
experience of homelessness and raise vital funds
for LandAid.
Asia
Savills Singapore participated in the ‘Football With
A Heart 2024’ event, a friendly five-a-side football
tournament, aimed at raising funds for five different
charities, each dedicated to supporting various
segments of society. A team of 16 from Savills
participated in the tournament, demonstrating
their commitment to this cause.
RESPONSIBLE BUSINESS
continued
North America
Savills North America successfully ran its annual
‘Cause for a Cure’ campaign in honour of Breast
Cancer Awareness Month, benefiting numerous
charities such as the American Cancer Society, Breast
Cancer Research Foundation, Susan G. Komen and
others. The campaign involved staff across multiple
offices, with significant engagement from Culture
Clubs, Directors of Operations (DOs), and individual
contributors who organised and ran events like
Rock Pink Day.
71
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FINANCIAL STATEMENTS
Europe
In 2024 the Portuguese team launched ‘The
Empowering Lab’ project developing several new
initiatives aimed at promoting mental health and
wellbeing. The programme included psychological
assessments, focus groups and interviews to raise
awareness on aspects related to mental health
and wellbeing. A skills development and training
component was also created covering emotional
intelligence, stress management, time planning,
interpersonal communication, and nutrition.
This project included various events both within and
outside the office, such as Happiness Day, where a
tournament was organised by a dedicated group for
all our Savills Portugal teams. ‘The Empowering Lab’
project has been honoured with the National Business
Sustainability Award in the esteemed ‘Health and
Well-being in Organisations’ category.
72
Annual Report and Accounts 2024
Culture
We actively foster an inclusive
workplace – aiming to attract diverse
talent regardless of their background,
develop and support our people, and
always lead by example.
Be Extraordinary,
together.”
RESPONSIBLE BUSINESS
continued
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GOVERNANCE
FINANCIAL STATEMENTS
We Empower
We Collaborate
We Challenge
Our cultural framework
Our purpose
Our Values
We Listen
Helping people thrive through
places and spaces
74
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Helping our people to be the best by providing an
environment in which our people can be their whole
selves and can flourish and thrive by:
§
Always looking to attract the best talent, selecting
new colleagues who share our Company values
§
Encouraging an open, inclusive and supportive
culture in which every individual is respected
§
Helping our people to excel through appropriate
learning and development
§
Sharing success and rewarding achievement
§
Recognising that our people’s diverse strengths
combined with good teamwork produce the
best results
§
Believing that a rewarding workplace inspires
and motivates
§
Engaging with our people to communicate our
vision and strategy through well-established
internal channels.
Attraction
We showcase our employee offer to attract professionals
who will offer exceptional service to our clients and
support business performance and growth. We use
a range of media and channels to communicate with
potential candidates, talking about our culture, values
and opportunities.
Employee engagement
We believe that in order to deliver our strategy, it
is essential that our people are fully engaged and
motivated. Our employees’ wellbeing is fundamental
to this and we continue to build on our wellbeing
programmes and activities globally. We listen to and
support the needs of our people, ensuring honest, open
lines of communication to enable our employees to stay
positive, connected and productive, while feeling valued
and supported.
We use multiple channels to communicate and engage
with employees, including regular ‘Town Halls’ and
roadshows, all-employee newsletters and advisories, our
intranet, and through our digital platform which allows
direct employee communication (in local languages)
with Non-Executive Directors (including the Chair) to
allow employee feedback to flow to the Board direct. We
also have an independently facilitated ‘Speak-up’ hotline
to allow colleagues to raise any concerns about our
business in confidence.
Culture
continued
Our people
75
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FINANCIAL STATEMENTS
We gather feedback regularly through various feedback
channels to measure engagement, such as regular
people surveys. For example, in the UK, in 2024 we
launched divisional action plans to tackle any themes of
areas for improvement, while taking care to celebrate
and recognise the positive.
In the UK, as a key element supporting the launch of our
Global Purpose and Values we engaged with over 1000
Leaders who attended workshops to further understand
how they can apply our values internally, ensuring that
they are embedded into our culture and leaders are
guided in how to lead more inclusively.
Developing our people
We believe in developing the capabilities of all individuals
to ensure that we attract, retain and support a diverse
range of talent to ensure they reach their full potential
and grow their careers at Savills. We work hard to
develop our both current and future which enable all
talent to thrive.
By investing in our people’s development we provide all
talent with the necessary skills to perform and encourage
everyone to pursue opportunities for growth. In doing
so we support our employees to develop and grow their
careers. By understanding the skills and capabilities
needed for growth and to meet our business objectives,
our learning programmes are designed to respond
to specific development needs. We deliver learning
programmes to reinforce and support the development
of our values and behaviours; for example, in relation
to ESG, financial crime risk, Our Code of Conduct
and data security and data management. We have
developed training to over 1000 leaders to reinforce
the need to embed our values and behaviours. We
continue to provide learning and development in all core
areas management and leadership, client and business
development, personal effectiveness and professional
and technical capabilities.
HOW THE BOARD ENGAGES WITH EMPLOYEES – SEE PAGE 105
76
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Our strategy is to embrace diversity and provide a
platform and a supportive environment in which all
our employees can be the best they can be. Diversity
and inclusion remains a key priority for the Board.
With oversight from the Board, we have continued to
implement our Diversity & Inclusion strategy. We work
hard to ensure those skills, experiences and perspectives
are nurtured and encouraged.
We continue to work to evolve our activities to educate
our people, take decisive action, generate engagement
and help implement our inclusion and diversity initiatives.
We look to nurture an inclusive culture in which
difference is accepted and valued. We believe that
diversity of thought, experience and background
We aim to do this by
working to:
§
attract the most diverse talent at all stages of
their careers from all backgrounds
§
develop our diverse talent, ensuring clear
career paths
§
lead by example with our most senior leaders
setting an inclusive culture.
Savills will strive to
be a truly inclusive
employer by having the
right inclusive policies,
learning and development,
leadership and recruitment
principles in place to
ensure all employees and
clients are treated fairly
and are able to be their
true, whole selves.”
Culture
continued
Diversity and inclusion
77
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FINANCIAL STATEMENTS
at all levels gives us a competitive advantage and
underpins the success of our business by giving us
the ability to select people of the highest quality from
the widest available pool of talent; this makes Savills
a better business. We are committed to recruiting,
developing and retaining diverse talent which reflects
the communities in which we live and work. We work
together to bring out the best in each other and to
sustain the strong working relationship ethic that
has nurtured our ‘can do’ attitude.
There are many ways in which we are working to
further build diversity: leadership, learning and
awareness, employee listening, recruitment and our
approach to talent management.
The Group has six key diversity and inclusion pillars
covering: gender, social mobility, ethnicity, LGBTQ+,
disability and age. Our objectives and the progress we
have made across all six pillars can be found below:
Area of focus
Objectives
Implementation
What we do
Age
We aim to
support all
our colleagues
through every
age and stage
of their career
with relevant
development,
policies,
support and
benefits
§
Improving internal
communication of
existing and new policies
§
Promoting mentoring
and rewarding loyalty
§
Ensuring that policies
and support are offered
for working carers.
§
We support our people to work flexibly for
different reasons to accommodate personal
and professional requirements
§
We are committed to our UK ‘Making your
Mentoring programme relevant for the modern
workplace’, a scheme that has been in place for
many years and which allows both mentor and
mentee to benefit from their involvement
§
We continue to work with Carers UK and
Employers for Carers to provide support to
those with caring responsibilities
§
In the UK Menopause awareness training
Recognised the support those going through
menopause in our business need and utilising our
network to bring people together, educate and
offer suggestions of managing symptoms
§
As part 78 D&I events held within our global
offices, Savills UK hosted an event to mark
Intergenerational Week, supported by Savills
UK’s Age Group.
Disability
Our goal is
to create an
accessible
and inclusive
business
where people
of all abilities
can work for
us or with us
without barrier
§
Raising awareness through
supporting internal and
external events
§
Implementing compulsory
diversity and equality
awareness training across
the business
§
Engaging with a number
of professional bodies
and diversity groups to
obtain their assistance
and expertise
§
Removing the stigma –
promoting awareness of
mental health issues.
§
We are committed to being a ‘Valuable 500’
business, which is a pledge to encourage 500
companies across the globe to sign up and agree
to be more inclusive in terms of disability
§
In 2024 Savills UK’s Disability Group hosted an
event to mark Deaf Awareness Week to increase
the visibility of challenges deaf people face and
educate others on how to best support them
§
In the UK we continue to develop our Disability
‘EnAble’ network to support those in the
business who have a disability or long-term
health condition
§
We hold a certification as a Disability Confident
Committed Employer (Level 2) in the UK
§
In China we marked World Autism Day and
supported initiatives to raise funds, improve
employment opportunities, and promote
community sports programs for individuals
with disabilities.
78
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
Area of focus
Objectives
Implementation
What we do
Ethnicity
We ensure
that all
cultural,
religious
and ethnic
diversity is
celebrated
and should
never be
a barrier
to being
your true
self at work
§
Promoting a culture
which rejects any form of
harassment or bullying
§
Making equality in the
workplace the responsibility
of all leaders and managers.
§
Savills globally supports Black History Month
with educational programmes highlighting key
black role models
§
North America’s Black Excellence United
(BeU) group held ‘back to school’ drives
in the Philadelphia and New York offices.
Individual employees donated items and
the local Culture Club and donated funds to
purchase items as well
§
In North America, Black History Month was
celebrated with a webinar by Tammy Jones, Co-
Founder and CEO of Basis Investment Group
§
In Asia, Hong Kong became a signatory of
both the Racial Diversity & Inclusion Charter
for Employers and the Good Employer
Charter 2024, highlighting its commitment
to workplace equality
§
North America’s Crain’s Notable Black Executives
awards this year recognised a member of our
Savills New York team.
Gender
Working
towards
ensuring the
same access
to opportunity
and experience
for everyone
at Savills, no
matter their
gender
§
Continue to ensure
that our learning and
development programmes
fully support our approach
to diversity and inclusion.
§
Our ‘Women in Leadership positions’, determined
in accordance with FTSE Women Leaders
Review criteria, was 36.7% as at 31 October
2024 (31 October 2023: 36.8%). We continue to
remain focused into the medium term on further
improving gender diversity
§
Savills IM this year celebrated International
Women’s days with IWD panel discussions
§
In CEME 11 countries across the region
participated in International Women’s Day
with activities ranging from webinars, external
speakers, diversity charters, community
volunteering and external networking events
§
We will continue to evolve our approach to meet
the needs of our clients and people.
Culture
continued
Diversity and inclusion
continued
79
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Area of focus
Objectives
Implementation
What we do
LGBTQ+
Embrace
diversity and
provide a
platform and
a supportive
environment
for everyone
to be the
best they can
be. Improve
LGBTQ+
inclusion in the
work place
§
Raising awareness
§
Recruiting and retaining
best people.
§
In the UK we hosted a significant Pride
celebration in London in 2024 alongside a
number of key clients with a focus on raising
money for the Albert Kennedy Trust
§
As part of LGBTQ+ History Month Savills UK
highlighted one inspirational colleague in the
UK each week
§
In North America to celebrate Pride, Savills
Pride+ in honour of Pride Month, a fireside
chat was hosted entitled “Pride Reflections:
Bridging Generational and Geographical LGBTQ+
Experiences,” featuring three LGBTQ+ identifying
panellists born in three different regions of the
US, in three separate decades
§
In CEME, D&I was further promoted through
28 wider D&I country initiatives, including
participation in Pride month
§
In Hong Kong a Lunar New Year morning tea
was also held to celebrate cultural diversity and
Malaysia hosted anti-discrimination training,
emphasising workplace equality.
Socio
economic
We aim to
educate and
remove any
barriers due
to social
backgrounds
by supporting
initiatives
which drive
social mobility,
in both our
organisation
and the
communities
we operate
within
§
Creating a workplace
that provides an equal
and fair platform for
everyone to be the best
they can be regardless
of their background
§
Increasing diversity of
talent pool
§
Inspiring the next
generation to consider
property for their career
§
In the UK we have created
a Social Mobility network
to further career awareness
and opportunities.
§
In the UK we engage with veterans, offering
work experience and mentoring
§
Savills Czech Republic supported job interview
simulations for students from socially
disadvantaged families organised by the charity
foundation ‘Nadání a dovednosti’
§
Our UK apprentice scheme has gone from
strength to strength – Savills now has 22
apprentices in the UK. We received 7850
applications for 25 vacancies in 2024, in
comparison to 4828 graduate applications for
130 vacancies
§
Working with Career Ready, a social mobility
charity, to offer 5 work placements a year for
three years
§
In CEME new internal Committees were
established in the Middle East with a D&I and
social focus.
80
Annual Report and Accounts 2024
RESPONSIBLE BUSINESS
continued
In 2024 we continued to
focus on initiatives to raise
awareness around mental
health and wellbeing
We continue to make available to all our
people wellbeing initiatives and benefits to
raise awareness of health and lifestyle issues
affecting mental health and wellbeing. Each of our
Principal Businesses has a mental health support
network available for employees; this may be
internal via a mental health champions network or
supported via an external provider. For example,
Australia now has 15 trained mental health first
aiders while Japan and Korea both have stress
tests and consultations as part of their annual
health checks. In North America, ‘Headspace’ is the
dedicated external mental health partner, which
regularly hosts wellness workshops. Employees
in North America also have ongoing access to
educational resources and videos addressing
mental health topics. In CEME, methods of support
for mental health and wellbeing vary depending
on the country. For example, in the Middle East
‘Mindset’ is used, while in Ireland mental health
support is provided from ‘Mylife’. The UK have
Employee Assistance Programme (EAP) available
to all along with access to external provider
MyndUp; there are also 333 trained mental health
champions. Similarly, for Savills IM MyndUp is
available to all employees.
Over the year Savills hosted over 86 mental
health events, demonstrating our strong
commitment globally to supporting mental
health awareness, physical activity and workplace
engagement. Examples of activities undertaken
include an employee wellbeing raffle within Savills
IM and the ‘MarchOn’ step challenge. Events in
North America included a Mental health roundtable
in May hosted by Headspace, a June step challenge,
where over 65 million steps were recorded, and
social anxiety and navigating grief workshops. In
CEME 21 mental health events or initiatives were
held including yoga classes, coffee mornings,
wellbeing weeks/months, training sessions,
competitions and workshops.
Gender balance
In accordance with the Companies Act 2006, as at
31 December 2024 our total global workforce of 40,267
colleagues comprised 21,744 males (54%) and 18,835
females (46%). Of these, 185 were senior executives (141
(76%) males, 44 (24%) females) comprising members
of the Group Executive Board and Board members of
the corporate entities whose financial information is
incorporated in the Group’s 2024 consolidated accounts
in this Annual Report, noting that the business principally
operates through executive committees and teams
with the result that the boards of directors of statutory
entities across the Group are not reflective of the
management or senior executive group.
During the year, the Company’s Board of Directors
comprised 10 members – six males and four female.
In accordance with the Equality Act 2010, Savills UK, as
an employer with 250 or more UK employees, publishes
an annual gender pay report (calculated in accordance
with the published requirements) on the Savills UK
website. (calculated in accordance with the published
requirements). Savills UK also voluntarily publishes an
ethnicity pay report (and has done since 2020).
Wellbeing and mental health
The wellbeing of our people is fundamental to our high-
performing and supportive culture. We have established
wellbeing programmes, and provide a range of benefits,
services and support while encouraging everyone to
take a proactive role in their own wellbeing. We want
our workplaces to have a culture of openness and
help eradicate the stigma of mental health through
educational events, skill building and awareness raising.
Culture
continued
Diversity and inclusion
continued
81
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Providing our clients with best in-class advice and
insights, excellent client care and investing in long-term
relationships are integral to retaining and growing our
clients. We continually refine our client strategies in line
with evolving client needs, their feedback, our expanding
service offering, and against a backdrop of changing
market conditions.
Client care excellence
We believe in creating and nurturing strong enduring
relationships by working in partnership with colleagues
and clients. As part of our Client Relationship
Management (‘CRM’) programme we have client
advocates in place who maintain continuous dialogue
to understand our clients’ strategies, their challenges
and evolving needs. The advocates share this insight
with the wider Savills client teams so we can align
and proactively recommend innovative solutions, to
provide a joined-up, consistent and personal service.
We encourage the development of internal relationships
across the business, adding value for our clients
by bringing in the right specialists from across the
organisation at the right time.
Listening to our clients
We engage in a variety of feedback activities,
depending on business area and client segment. This
ranges from mystery shopping, satisfaction surveys,
post-bid feedback and post-instruction feedback to
more in-depth business reviews, as well as in-person
client feedback sessions with independent third-party
consultants. Better understanding our existing and
prospective clients puts us in a stronger position to
retain mandates, win new projects and identify emerging
needs. We continue to further invest in and embed our
client insights technology across our regions. Our goal
is to ensure greater visibility of client intelligence and
increase efficiencies and collaboration between client
teams across service lines and countries.
Our initiatives
We run various initiatives to ensure our people are
continually upskilling and learning. Our successful long-
established ‘lunch and learn’ programme continues,
alongside sector-specific working groups and cross
discipline learning programmes. Building upon the
success of the training and coaching programme, in
2024 we further expanded the client development
learning offering across all levels through an expanded
business development curriculum. We continue to host
research and learning events where junior team members
have an opportunity to create meaningful relationships,
consequently investing in our clients of the future.
Our clients
82
Annual Report and Accounts 2024
82
RESPONSIBLE BUSINESS
continued
Our commitment to acting honestly, with integrity, and
always with clients’ best interests at heart, is fundamental
to everything we do.
Our reputation has been built on our people and we
believe that employees whose behaviours reflect our
business philosophy deliver the excellent client service
that we strive to provide. Our business philosophy also
captures our commitment to ethical, professional and
responsible conduct and our entrepreneurial, value-
enhancing approach.
Our Code of Conduct sets out our commitment to
operate responsibly wherever we work in the world,
to work professionally and with integrity and to
engage with our stakeholders to manage the social,
environmental and ethical impact of our activities in
the different markets in which we operate. We empower
and support our employees to always make the right
decisions consistent with this policy. Our corporate
conduct is based on our commitment to act responsibly
at all times. We will uphold laws relevant to countering
bribery and corruption in all the jurisdictions in which
we operate.
To facilitate the Savills Board’s assessment and
monitoring of culture, the Board adopted KPIs, set out
on page 99 of the Governance Report.
Our approach to human rights
Savills is committed to conducting its business
ethically and in line with all relevant legislation including
human rights laws. We fully support the principles of UN
Global Compact, the UN Declaration of Human Rights
and the International Labour Organization’s (‘ILO’) Core
Conventions. Any breaches of our Code of Conduct
may be reported in accordance with the Group’s
Speak-up procedure.
Modern slavery
We believe the risk of slavery or human trafficking in
the recruitment and engagement of our employees and
supply chain is low. To ensure it remains low, we have
provided training on modern slavery and taken steps to
make sure our staff and supply chain partners are aware
of the Act and its requirements. We published our latest
Modern Slavery and Human Trafficking Statement which
can be found at https://www.savills.co.uk/footer/slavery-
and-human-trafficking-statement.aspx
Speak-up
Savills Group is committed to maintaining the highest
ethical standards and a culture of openness, integrity
and accountability in all its business dealings and
practices. Savills treats any malpractice (e.g. fraud,
bribery, illegal or unethical conduct or wrongdoing) with
the utmost seriousness. Our people are encouraged to
raise any concerns they may have about the conduct of
others in the business or the way the business is run at
an early stage and in an appropriate way. Our Speak-up
policy, supported by third-party-managed confidential
reporting facilities in all markets, enables employees to
raise any matters of concern, anonymously if they so
wish, and is embedded into our business; it applies to
employees and supply chain partners of the Group’s
businesses worldwide.
This Strategic report, as set out on pages 6 to 82 has
been approved by the Board and signed on its behalf by
Mark Ridley
Group CEO
12 March 2025
Governance
Culture
continued
83
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
GOVERNANCE OVERVIEW
Applying the principles of the 2018 UK
Corporate Governance Code
Compliance with the UK Corporate Governance Code
The Company reported against the 2018 UK Corporate Governance Code (the ‘Code’) and the Companies
(Miscellaneous Reporting) Regulations 2018. Our Governance Report reflects these requirements as they apply to
Savills and includes cross references to relevant sections of the Strategic Report, the Directors’ Remuneration Report
and other related disclosures. A copy of the Code is available from the Financial Reporting Council’s website at
www.frc.org.uk. It is the Board’s view that for the financial year ended 31 December 2024 Savills was fully compliant
with all of the Principles and Provisions set out in the Code.
The table below details where key content on the compliance with the Code can be found in this report.
Page
1
Board leadership
and Company
purpose
This provides an
overview of the
Board activities
during the year
Board of Directors
88 to 90
Group Executive Board
91 to 93
Effective Board
94
Board attendance
95
Board activities in 2024
96 and 97
Culture
98 and 99
Employee engagement
105
Stakeholder engagement
100 to 102
Section 172 Statement
103
2
Division of
responsibilities
Explains the roles
of the Board and
its Directors
Corporate Governance structure
107 and 108
Roles on the Board
109
3
Composition,
succession and
evaluation
This includes
the Nomination
& Governance
Committee Report
Nomination & Governance Committee Report
112 to 118
Appointments and succession planning
114 to 116
Diversity & Inclusion
116
Evaluation
117
4
Audit, Risks and
Internal Controls
This includes the
Audit Committee
Report
Risk management and internal control
119
Audit Committee Report
120 to 128
Internal controls and risk management
128
External auditor
126 and 127
Principal risks and uncertainties
30 to 36
5
Remuneration
Directors’ Remuneration Report
129 to 160
6
Directors’ Report
161 to 164
84
Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
Stacey
Cartwright
Chair
I am pleased
to present the
Group’s Corporate
Governance Report
for the year ended
31 December 2024.”
The Board is committed to maintaining the highest
standards of corporate governance, which are
fundamental to the discharge of our responsibilities.
Our robust and effective corporate governance practices
enable the Group to deliver its strategy and create
long-term Shareholder value. Further information on
our strategy and business model can be found on
pages 6 to 82.
The Board’s behaviour and the values it displays set the
tone to guide our people’s behaviour, and ensure that
they live by and demonstrate Savills values, which in
turn enable entrepreneurial and prudent management
to deliver long-term success for the Group and its
stakeholders. We aspire to the highest standards of
conduct and, together with a culture of continuous
improvement in standards and performance, this helps
to ensure that good governance extends beyond the
Boardroom. The Savills Code of Conduct helps aid the
understanding and embodiment of behaviours that
align employees with the culture set by the Board,
and underpins our social, ethical and environmental
commitments. In March each year, the Board considers
and approves our Modern Slavery Statement, which
explains the activities we have undertaken during
the year to demonstrate our commitment to seeking
to ensure that there is no slavery, forced labour or
human trafficking within any part of our business or
in our supply chains. A copy of our Modern Slavery
Statement is available at https://www.savills.co.uk/footer/
slavery-and-human-trafficking-statement.aspx.
Chair’s Introduction
85
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The Board, together with the Nomination &
Governance Committee, has continued to monitor
the composition and skills matrix of the Board and at
senior management levels across the Group All of the
Non-Executive Directors are considered by the Board
to be independent, meaning that at least half of the
Board members throughout the year were Independent
Non-Executive Directors. I am pleased to report that,
following an extensive search process, supported by an
independent specialist search firm, on 14 March 2024
Adriana (‘Andi’) Karaboutis was appointed to the Board
as an additional Independent Non-Executive Director.
Andi also joined the Audit Committee and Nomination &
Governance Committee with effect from 14 March 2024.
In 2025, Andi will join the Remuneration Committee
with effect from 1 April 2025, following which she will
stand down as a member of the Audit Committee. Andi’s
experience, particularly in relation to the development
and application of new technologies, will complement
and further enhance the wide-ranging skills and
experience of the Board and its Committees and I am
delighted to welcome her to the Board (see Nomination
& Governance Committee Report on pages 112 to 118).
The Board continues to focus on strengthening diversity
and inclusion at Savills, both in relation to the Board
and more broadly throughout the organisation. With
support from the Nomination & Governance Committee,
we continue to monitor requirements. The FCA’s UK
Listing Rules now set a board diversity target stating
that at least 40% of a board are women, at least one of
the roles of Chair, CEO, CFO and Senior Independent
Director (‘SID’) is held by a woman, and at least one
Director is from a minority ethnic background. As at the
31 December 2024 and at the date of this Report, the
Company has met all of the above targets. Our Board
composition also meets the Parker Review target that at
least one Director be from a minority ethnic background.
We test Board effectiveness and performance annually
through a formal evaluation. This year that evaluation
was conducted in-house, led by the SID (Richard Orders)
and facilitated by the Group Legal Director & Company
Secretary. The process, key conclusions and areas of
focus for 2025 are set out on page 117. I am pleased to
report the findings show there is clear consensus that
the Board is operating well with effective leadership and
in an environment where open discussion and input from
all members is encouraged and facilitated. Following
this review, I am satisfied that the Board continues to
perform effectively and in particular I am confident that
the Board has the right balance of skills, experience and
diversity of personality to continue to encourage open,
transparent debate and challenge.
The details of Directors, skills and experience are set
out on pages 88 to 90. The governance framework and
the roles of the various Board Committees, principal
management committee and other key committees
are set out on pages 107 and 108.
Risk management remains a fundamental element of
the Board and Audit Committee’s agendas and our
governance efforts across the Group as a whole. The
Audit Committee’s Report on pages 120 to 128 sets out in
more detail the systems of risk management and internal
control. Details of our principal existing and emerging
risks and uncertainties can be found on pages 30 to 36.
We believe that engaging with our Shareholders and
encouraging an open, meaningful dialogue between
Shareholders and the Company is vital to ensuring
mutual understanding. We are in regular contact with
our major Shareholders and potential Shareholders
and in 2024 continued our scheduled programme of
meetings through in-person meetings and by way of
video conference as part of our continuing commitment
to this open and transparent dialogue. You can read
more about Shareholder engagement on page 105.
Included within this Report is our Annual Report on
Directors’ Remuneration, which will be presented to
Shareholders for approval at the 2025 AGM along with
a proposed new Directors’ Remuneration Policy which
Shareholders will also be asked to approve. In January
2024 the Financial Reporting Council (FRC) published
the UK Corporate Governance Code 2024 (‘2024 Code’).
The principal changes in the 2024 Code focus on internal
controls and require boards to monitor and review all
material controls and to make a declaration on their
effectiveness in annual reports. The 2024 Code will
apply to the Group from the financial year commencing
1 January 2025 (except for provision 29 in relation to risk
management and internal controls, which is effective
from 1 January 2026). The Board and its Committees
are regularly updated on the forthcoming requirements
and plans to ensure the Company is compliant with
the provisions and principles of the 2024 Code at the
appropriate times.
We will continue to challenge ourselves and the business
and to consider and to learn from our decisions to
ensure that we build upon the existing strength of our
governance structure.
Stacey Cartwright
Chair
12 March 2025
86
Annual Report and Accounts 2024
2
Executive
Board diversity and tenure (as at 31 December 2024 and the date of this report)
Governance at a Glance
8
Non-Executive
3
0-3 years
3
3-5 years
2
5-9 years
6
Male
6
UK
9
White
4
Female
4
Non-UK
1
Ethnic minority
LEADERSHIP AND COMPANY PURPOSE
continued
The Board remains satisfied that
it has the appropriate balance of
skills, experience, independence
and knowledge.”
Board
gender
Independent
Directors
Board
Nationality
Composition
Board
Ethnicity
87
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
UKLR6.6.6R(10) as at the date of the Annual Report
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(Chair, CEO,
CFO and SID)
Number in
executive
management**
Percentage
of executive
management
Men
6
60%
3*
8
100%
Women
4
40%
1
#
0
0
Other categories
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
Number of
Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(Chair, CEO,
CFO and SID)
Number in
executive
management**
Percentage
of executive
management
White British or other White (including
minority-white groups)
9
90%
4
7
86%
Mixed/Multiple ethnic groups
0
0
0
0
0
Asian/Asian British
1
10%
0
1
14%
Black/African/Caribbean/Black British
0
0
0
0
0
Other ethnic group, including Arab
–
–
–
–
–
Not specified/prefer not to say
–
–
–
–
–
*
Mark Ridley (CEO), Simon Shaw (CFO), Richard Orders (SID).
# Stacey Cartwright (Chair).
** Defined as the Group Executive Board.
2024 Highlights
Board composition
and changes
§
40% female representation on
the Board (as at 31 December
2024; 33% until 14 March 2024)
§
Andi Karaboutis joined the
Board on 14 March 2024 as an
additional Independent Non-
Executive Director.
Board attendance
§
In 2024 there were seven
scheduled meetings of the
Board which Directors attended
either in-person or remotely,
using video conference facilities
§
Directors’ attendance record at
the scheduled Board and. Board
Committee meetings, is set out
in the table on page 95
§
Attendance is expressed as the
number of scheduled meetings
attended, out of the number that
each Director was eligible or
invited to attend.
Annual General Meeting
§
The 2024 AGM was held on
15 May 2024 at 33 Margaret
Street, London W1G 0JD
§
All Directors attended the AGM
either in person or remotely
§
During the AGM, the Company
provided an update on trading
up to the AGM, following which
the Chair Stacey Cartwright took
questions from Shareholders
which were responded to by the
Chair and other Directors
§
Voting was carried out by way
of a poll as authorised by the
Articles of Association
§
All resolutions contained in the
Notice of Meeting were passed.
88
Annual Report and Accounts 2024
Key:
A
Audit Committee
N
Nomination & Governance Committee
R
Remuneration Committee
Chair of Committee
Appointment to the Board
Mark joined Savills in 1996 and was
appointed to the Board on 1 May 2018.
Background and relevant
experience
Mark is a Fellow of the Royal
Institution of Chartered Surveyors.
He was Chairman of Savills
Commercial from May 2008, then
Chief Executive Officer of Savills
UK from 2013 and additionally of
Savills Europe from 2014 until he
was appointed as Deputy Group
Chief Executive on 1 May 2018. As of
1 January 2019, Mark was appointed
as Group Chief Executive Officer.
Other appointments
Trustee of Reading Real Estate
Foundation. Member of the
British Property Federation’s
Leadership Forum.
Appointment to the Board
Simon joined Savills as Group Chief
Financial Officer in March 2009.
Background and relevant
experience
Simon is a Chartered Accountant.
He was formerly Chief Financial
Officer of Gyrus Group PLC, a
position he held for five years until
its sale to the Olympus Corporation.
Simon was Chief Operating Officer
of Profile Therapeutics plc for five
years and also worked as a corporate
financier, latterly at Hambros
Bank Limited.
Other appointments
None.
Appointment to the Board
Stacey was appointed to the Board
as a Non-Executive Director on
1 October 2018 and became Chair
in January 2024.
Background and relevant
experience
Stacey most recently served as
Chief Executive and then Deputy
Chairman of Harvey Nichols Group
until 2018, and prior to that was EVP
and CFO of Burberry Group plc. She
previously served as CFO of Egg
plc and spent her early career in a
number of finance roles at Granada
Group PLC. She was a Non-Executive
Director at GlaxoSmithKline PLC
from 2011 to 2016 and the Senior
Independent Non-Executive Director
of the English Football Association
from 2018 to 2020. She qualified
as a Chartered Accountant with
Price Waterhouse.
Other appointments
Non-Executive Director of AerCap
Holdings N.V and Gymshark.
Board of Directors
R
N
Mark Ridley
Group Chief
Executive Officer
Simon Shaw
Group Chief
Financial Officer
N
Stacey
Cartwright
Chair of Savills
plc and Chair of
the Nomination
& Governance
Committee
LEADERSHIP AND COMPANY PURPOSE
continued
89
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Appointment to the Board
Florence was appointed to the Board
as a Non-Executive Director on
1 October 2018.
Background and relevant
experience
Florence is currently Chief
Executive Officer of Visa Europe
FBL, having previously been Chief
Executive Officer of Willis Towers
Watson France & Luxembourg,
having joined from Zurich Insurance
where she was Chief Executive Officer
France. Florence was previously
Chief Operating Officer of Hiscox
Europe, prior to which she held senior
executive roles at AXA Real Estate
and AXA Investment Managers.
She spent her early career at
McKinsey & Company.
Other appointments
Non-Executive Director of Grant
Thornton International Limited.
Appointment to the Board
Dana was appointed to the Board
as a Non-Executive Director on
1 November 2019.
Background and relevant
experience
Dana was most recently a partner
and founding member of the Real
Estate Private Equity group at Angelo
Gordon, a privately held alternative
investment firm. During her 25-year
tenure, ending in December 2019,
she served as a manager and leader
of investment teams across all major
US markets, and served as a Member
of the Investment Committees for the
firm’s US Opportunistic, Core Plus
and Value Real Estate Funds. She
spent her early career in real estate
valuation and advisory at Arthur
Andersen LLP in Washington, DC.
Other appointments
Independent Director Cohen &
Steers Income Opportunities REIT,
Inc (CNSREIT) and Advisory Board
NYU Stern Chen Institute of Global
Real Estate Finance.
A
N
Florence
Tondu-Mélique
Independent
Non-Executive
Director
N
R
Dana Roffman
Independent
Non-Executive
Director
Appointment to the Board
Philip was appointed to the Board
as a Non-Executive Director on
1 January 2021.
Background and relevant
experience
Philip Lee is currently Vice Chairman
of Global Banking, HSBC Bank and is
a member of the Global Banking Vice
Chairman and Banking Leadership
Forums. Philip was previously with
Deutsche Bank (2013-2018) as Vice
Chairman of South East Asia and
Chief Country Officer for the Bank
in Singapore. Prior to 2013, Philip
was with JP Morgan (1995-2013),
where he was CEO South East Asia
Investment Banking and Senior
Country Officer, Singapore, after
having worked in senior positions
for various other banks in the region
before then. Since 2006, he has also
held roles on various advisory bodies
and Statutory Boards established by
the Singapore government.
Other appointments
Non-Executive Director of Heliconia
Capital Management, an investment
firm owned by Temasek focused
on growth-oriented Singapore
companies, SPH Media Holdings, the
Singapore media company owned
by the Singapore Government and
ST Engineering, a listed company
on the Singapore Stock Exchange.
Philip Lee
Independent
Non-Executive
Director
A
N
90
Annual Report and Accounts 2024
Appointment to the Board
Richard was appointed
to the Board as a Non-
Executive Director on
1 January 2021.
Background and relevant
experience
Richard Orders is currently a
Managing Director at Moelis
& Company a leading global
independent investment
bank, heading the Firm’s
Hong Kong office having
founded its predecessor
firm, Asia Pacific Advisors, in
2009. Prior to this, Richard
was with ABN AMRO (1996-
2008), latterly from 2004-8
as Vice Chairman and Head
of Global Clients Asia, having
previously been Executive
Chairman and CEO of ABN
AMRO Asia Corporate
Finance. Previously,
Richard held various roles
in Barings Bank, which he
joined in 1976, latterly as
Head of Barings Investment
Banking business in Asia,
ex Australia and Japan
(1994-96) and Director of
Barings Corporate Finance
London (1996).
Other appointments
None.
Appointment to the Board
Marcus was appointed
to the Board as a Non-
Executive Director on
15 December 2022.
Background and relevant
experience
From 2002 until 2019, Marcus
Sperber held various roles
with BlackRock, acting first
as the portfolio manager
of Blackrock’s UK property
fund, before being appointed
as Head of EMEA real estate
and then ultimately holding
the role of Global Head of
Real Estate. Prior to 2002,
Marcus held various positions
with Ashtenne (2001-2002),
Enterprise (1992-2001) and
Roger Tym & Partners (1990-
92), having started his career
with the British Rail Property
Board (1987-89).
Other appointments
Founder of NorthCroft
Capital, a Real Estate
Investment and advisory
business and a Non-
Executive Director of
Segro plc, Cadillac Fairview
Property Trust and Fiera Real
Estate Investment Limited
and Chair of Jewish Care,
a not for profit charity.
Appointment to the Board
John was appointed
to the Board as a Non-
Executive Director on
13 December 2023.
Background and relevant
experience
John was with PwC for 36
years of which 24 were as
a partner. He was largely
based in London but had
spells working for the
firm in both Hong Kong
and Rome. During his
career he served as audit
partner to a wide range of
clients including a number
of significant property
businesses based both in
London and Hong Kong.
Other appointments
None.
Appointment to the Board
Adriana was appointed to the
Board as a Non-Executive
Director on 14 March 2024.
Background and relevant
experience
Andi brings extensive
experience as a commercial
business leader and over
three decades of technology
leadership across a number
of industries. Most recently
she was Chief Information and
Digital Officer and an Executive
Board member at National Grid
plc (2017-23), having previously
been Executive Vice President,
Technology, Business Solutions
and Corporate Affairs at
biotech company, Biogen
(2014-17). Prior to this she
was Global CIO of Dell (2011-
2014) and from 2004-2010 an
Executive Director of General
Motors Company.
Other appointments
Non-Executive Director
of AutoLiv Inc (appointed
2024), Aon plc (appointed
2022) and Perrigo Company
plc (appointed 2017) having
previously been a Non-
Executive Director of Aspen
Technology, Inc. (2020-22)
and Advance Auto Parts, Inc.
(2015-2020).
Richard Orders
Senior
Independent Non-
Executive Director
and Chair of the
Remuneration
Committee
Marcus Sperber
Independent
Non-Executive
Director
John Waters
Independent Non-
Executive Director
and Chair of the
Audit Committee
Adriana
Karaboutis
Independent
Non-Executive
Director
N
A
A
A
R
N
N
N
Board of Directors
continued
LEADERSHIP AND COMPANY PURPOSE
continued
Key:
A
Audit Committee
N
Nomination & Governance Committee
R
Remuneration Committee
Chair of Committee
91
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Group Executive Board
Mark Ridley
Group Chief
Executive
Officer (effective
1 January 2019)
Simon Shaw
Group Chief
Financial Officer
Deputy Group Chief
Executive (from 1 May 2018 to
31 December 2018)
(SEE BOARD OF DIRECTORS ON PAGES 88 TO
90 FOR FULL BIOGRAPHY)
(SEE BOARD OF DIRECTORS ON PAGES 88 TO
90 FOR FULL BIOGRAPHY)
Appointment to the Group
Executive Board
Alex was appointed to the Group
Executive Board on 1 November 2019.
Background and relevant
experience
Alex became Global CEO of
Savills Investment Management
on 1 November 2019 and was
appointed to Savills Group
Executive Board at that time.
Alex was previously Head of Asia
Pacific for M&G Investments based
in Singapore, with responsibility for
the development and leadership of
that company’s business across all
investment sectors in Asia Pacific.
Prior to this, he was Chief Executive
of M&G Real Estate, based in
London. Before that he was Chief
Investment Officer and CEO
Europe of MGPA Limited.
Other appointments
None.
Alex Jeffrey
Chief Executive
Officer – Savills
Investment
Management
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Annual Report and Accounts 2024
Chris Lee
Group Legal
Director &
Company
Secretary
Raymond Lee
Chief Executive
– Hong Kong,
Macau and
Greater China
David Lipson
Chief Executive
Officer – Savills
North America
Appointment to the Group
Executive Board
Raymond was appointed to the Group
Executive Board in January 2011.
Background and relevant
experience
He joined Savills in 1989. In 2003,
Raymond became the Managing
Director in Hong Kong and Macau
and in 2010 was appointed CEO of
Greater China. Raymond is a Fellow
member of the Hong Kong Institute
of Directors and holds an honorary
fellowship at the Quangxi Academy
of Social Science. Raymond is also
an Honorary Doctor of Management
at Lincoln University and holds a
Fellowship at the Asian College of
Knowledge Management (ACKM).
He became a fellow member of
the Royal Institute of Chartered
Surveyors (RICS) in 2016.
Other appointments
None.
Appointment to the Group
Executive Board
Chris joined Savills in June 2008
and was appointed to the Group
Executive Board in August 2008.
He has responsibility for legal and
compliance issues globally.
Background and relevant
experience
He held equivalent roles with Alfred
McAlpine plc, Courts plc and Scholl
plc between 1997 and 2008, prior to
which he was deputy group secretary
of Delta plc from 1990 to 1997.
Other appointments
None.
Appointment to the Group
Executive Board
David was appointed to the Group
Executive Board on 1 January 2024.
Background and relevant
experience
David Lipson is CEO of Savills North
America. He previously served as
President, North America from
2021 through 2023. As CEO, his
responsibilities include oversight
of all Savills business lines and
locations in North America, as well
as mergers and acquisitions and
strategic business development
pursuits. David has dedicated more
than 35 years of service to Savills
and is one of the firm’s most tenured
and respected leaders. He co-
managed the Mid-Atlantic region for
almost 15 years and served on the
firm’s North American board and
executive committee since 2004
and 2014, respectively.
Other appointments
David currently serves as chairman
of the board for the British Schools
and Universities Foundation. He is a
member of the Board of Benefactors
at Christ Church, Oxford.
Group Executive Board
continued
LEADERSHIP AND COMPANY PURPOSE
continued
93
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STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
James Sparrow
Chief Executive
Officer, UK &
EMEA
Appointment to the Group
Executive Board
James was appointed to the Group
Executive Board on 1 May 2018.
Background and relevant
experience
James is a Fellow of the Royal
Institution of Chartered Surveyors.
He became Chief Executive of
Savills UK & EMEA in September
2018, having previously been Chief
Executive of Savills UK since 1 May
2018. Prior to this James held the
position of Head of Professional
Services, Savills UK and was a
member of the Savills UK Executive
Board since 2013 when it was
established. Before that James
was a member of the Executive
Board of Savills Commercial,
having joined Savills in 1988.
Other appointments
None.
Martin Fidden
Chief Executive
Officer – Asia
Pacific (ex
Greater China)
Appointment to the Group
Executive Board
Martin was appointed to the Group
Executive Board on 1 January 2025.
Background and relevant
experience
Martin was appointed Chief
Executive of Savills Asia Pacific
(excluding Greater China) on
1 January 2025, following his tenure
as Managing Director of the region
since 1 March 2024. He has been a
member of the Savills Asia Pacific
Executive Board since 2019, during
which he also served as Head of
Professional Services for the region.
Martin joined Savills in 2004 in
Sydney, Australia, where he held
senior roles within the Valuation
& Advisory division. In 2014, he
relocated to the Singapore office,
where his leadership responsibilities
expanded across various advisory
and transaction service lines within
the Asia Pacific business.
Other appointments
None.
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Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
continued
Board Leadership and Company Purpose
Effective Board
Having the appropriate mix of experience, expertise,
diversity and independence is essential for the Savills
Board. Our Board comprises highly skilled professionals
who bring a range of skills, perspectives and corporate
experience to our Boardroom (see pages 88 to 90). To
ensure sufficient time for discussion, the Board utilises
its principal Committees to effectively manage its time
(see pages 107 and 108 for Governance framework).
At each Board meeting, the agenda ensures sufficient
time for the Committee Chairs to report on the
contents of discussions at Committee meetings, any
recommendations to the Board which require approval
and the actions taken.
Governance arrangements and
Board resources
Our governance arrangements support the development
and delivery of strategy by:
§
ensuring accountability and responsibility; facilitating
the sharing of information to inform decisions;
§
establishing engagement programmes with key
stakeholders (see pages 100 to 102);
§
maintaining a robust system of risk oversight,
management and effective internal controls (see
page 128); and
§
providing independent insight and knowledge from
the Non-Executive Directors.
The Board has formally adopted a Schedule of Matters
reserved to it for decision. These matters include
decisions relating to the Group’s strategy, financing,
any major acquisition or disposal, the risk appetite of
the Group and the authorisation of capital expenditure
above the delegated authority limits. The Schedule was
most recently reviewed in March 2025 and is available
along with the Terms of Reference of the Board’s
principal Committees on the Company’s website at
http://ir.savills.com.
Board and Committee meetings are structured to allow
open discussion. To enable the Board to discharge its
duties, each Director receives appropriate and timely
information. Board papers are circulated electronically
via a secure portal, giving Directors sufficient time to
consider and digest their contents. The Chair of the
Board and the Chairs of the Committees set the agendas
for upcoming meetings with support from the Group
Legal Director & Company Secretary.
The Chair, together with the Group Legal Director &
Company Secretary, ensures that the Directors receive
management information, including financial, operating
and strategic reports, in advance of Board meetings.
We aim to ensure that the information shared with our
Board is of sufficient depth to facilitate debate and to
allow Board members to fully understand the content.
The Board will, as appropriate, invite the preparer of the
report to attend meetings so the Board can gain a better
understanding and question management directly. The
Heads of Principal Businesses also periodically attend
Board meetings to discuss the progress made by the
Principal Businesses against their strategic plans.
In order to fulfil their duties, procedures are in place
for Directors to seek both independent advice and the
advice of the Group Legal Director & Company Secretary
who is responsible for advising the Board on all
governance matters.
At its meetings during the year, the Board discharged
its responsibilities and received updates on the Group’s
financial performance, key management changes,
material new projects, financial plans, and ESG, legal
and regulatory updates.
95
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STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Board Attendance in 2024
Attendance at all Board and Committee meetings by Directors is as shown in the table below:
Board
7 scheduled
meetings
(including the
Strategy Day)
Audit Committee
5 scheduled
meetings
Nomination &
Governance
Committee
2 scheduled
meetings
Remuneration
Committee
4 scheduled
meetings
Non-Executive Directors
Stacey Cartwright
1
7
–
2
4
Florence Tondu-Mélique
7
5
2
–
Dana Roffman
7
–
2
4
Philip Lee
7
5
2
–
Richard Orders
7
–
2
4
Marcus Sperber
7
4
2
–
John Waters
7
5
2
–
Andi Karaboutis
2
6
4
1
–
Executive Directors
Mark Ridley
3, 4
7
2
2
2
Simon Shaw
3, 5
7
5
–
1.
The Chair attended two Audit Committee meetings by invitation.
2. Andi Karaboutis joined the Board on 14 March 2024.
3. Members of the Group Executive Board.
4. The Group Chief Executive attended two Audit Committee meetings by invitation.
5. The Group Chief Financial Officer attended five Audit Committee meetings by invitation and one Remuneration Committee meeting.
Notes to table and graphics
1.
The information above is stated as at 12 March 2025.
2.
The FCA’s UK Listing Rules now set Board diversity targets for listed companies requiring that (i) at least 40% of Board members are women; (ii) at least one
of the roles of Chair, CEO, CFO and SID is held by a woman; and (iii) at least one Director is from a minority ethnic background. Savills has fully complied with
this target in 2024.
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Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
continued
What the Board did in 2024
The Board met seven times during the year to consider the items noted below.
The Board has a duty to promote the long-term sustainable success of the Company for its members as a whole,
and in so doing have regard to (i) the likely consequences of any decision in the long-term; (ii) the interests of the
Company’s employees; (iii) the need to foster the Company’s business relationships with suppliers, customers and
others; (iv) the impact of the Company’s operations on the community and the environment; (v) the desirability of the
Company maintaining a reputation for high standards of business conduct; and (vi) the need to act fairly as between
members of the Company. The Board is responsible for monitoring the Company’s purpose, values and strategy and
ensuring that these and the Company’s culture are aligned. Its role includes the oversight of succession planning,
approval of major acquisitions, disposals, capital expenditure and financing arrangements and of the Group’s systems
of internal control, governance and risk management. The Board provides and promotes effective and entrepreneurial
leadership across the business within the Group’s governance framework.
The Board’s principal actions during 2024 were to consider and reconfirm the Group’s strategy and growth plans and
those of the Principal Businesses; to approve material transactions and strategic recruitments across the Group; and
to confirm the Group’s net carbon zero targets. One of the Board’s meetings during the year which was held at the
offices of Savills Real Estate LLC in Dubai was specifically devoted to the review of the Group’s strategy.
The key areas of Board activity during the year are set out as follows:
Area of focus
Board activity
Leadership and
People
Reviewed the composition and performance of the Board and its Committees
Purpose, Strategy
and implementation
Monitored the performance and growth of the Group’s Principal Businesses
Held the annual review of Strategy to consider in depth and reconfirm the Group’s Strategy
In particular endorsed the following growth initiatives consistent with the Group’s strategic plan to further
build the Group’s Global Residential Offering – the acquisition of Verbier Lettings in Switzerland; in the UK,
the Lettings Management business of Pastor Real Estate; and in the UAE, the organic growth of a residential
platform through strategic recruitment
Received and considered investor feedback collated by the Company’s corporate brokers from investor road-
shows, presentations and meetings between investors and the Group Chief Executive and/or Group Chief
Financial Officer
Received regular client feedback from the Group Chief Executive
Internal Control and
Risk Management
Reviewed and confirmed the principal existing and emerging risks and uncertainties facing the Group which
are described in detail on pages 30 to 36
Reviewed the Group’s risk register and the effectiveness of the systems of internal control and risk management
Received updates on the risk and internal control environments within the Group’s Asia Pacific, North
American, CEME and UK businesses and Savills Investment Management
Governance
Received updates on regulatory and governance developments
Received regular reports in relation to material legal matters
Reviewed and discussed the evaluation of the performance of the Board, its Committees and individual
Directors to ensure that they continued to be effective in support of Group strategy, policy and practice
Considered issues raised through the Group’s confidential reporting (‘Speak-up’) channels
Reviewed and approved the Company’s 2024 Modern Slavery Statement
Financial
Management
Reviewed the 2025-2027 Group Business Strategy Plan and approved the 2025 Plan
Reviewed business, profit and cash management performance, and in each case, assessed performance in
these areas against the Group’s strategy, objectives and business plans to ensure that the financial returns
generated by the Group’s businesses were applied to the creation of additional value, costs were controlled
and that resources could be made available at the appropriate time to realise business opportunities
Considered and approved the 2024 Going concern and Viability statements
Reviewed and approved the Company’s 2025 Tax Strategy
Approved the 2024 Annual and Half-year results and trading updates, and accounting policies so as to ensure
in particular that communication with the Group’s Shareholders was fair, balanced and understandable; and,
subject to Shareholder approval, the appointment and the remuneration of the External Auditor
Effectiveness
Reviewed the annual Directors’ Conflict of Interests declarations
Considered and approved standing situational, and if they arose, actual conflicts of interest
Undertook the 2024 Board performance evaluation process and agreed the Board’s priority focuses for 2025
97
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GOVERNANCE
FINANCIAL STATEMENTS
Board and Committee meetings
Key announcements
January
Remuneration Committee
Group Executive Board
February
March
Main Board
Audit Committee
Remuneration Committee
Nomination & Governance Committee
Results for year ended 31 December 2023 and
recommended 2023 final dividend
Appointment of Andi Karaboutis as an
additional independent NED with effect from
14 March 2024
April
Group Executive Board
Annual Report for the year ended 31 December
2023 and Notice of 2024 AGM
May
Main Board
AGM
AGM Trading Statement
Published results of 2024 AGM
June
Main Board
Audit Committee
July
Group Executive Board
August
Main Board
Audit Committee
2024 Half-year results & 2024 interim dividend
October
Group Executive Board
Audit Committee
November
Main Board
Main Board strategy review in Dubai
Nomination & Governance Committee
December
Main Board
Audit Committee
Remuneration Committee
Group Executive Board
98
Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
continued
Our cultural framework
Our purpose
Helping people thrive through
places and spaces
Our vision
To be the real estate advisor of choice in the markets we serve.
The growth of the Group is underpinned by providing best-in-class
insights and advice to help individuals, businesses and investors
make better real-estate decisions.
Our values
We Collaborate
We Empower
We Challenge
We Listen
READ MORE ABOUT OUR VALUES ON PAGE 11
The Board is responsible for instilling throughout the Company a strong and well embedded inclusive culture;
founded on an entrepreneurial approach, one of integrity and openness, and one that values diversity and is
responsive to the views of its Shareholders and wider stakeholders. This is underpinned by our values and operational
and ethical standards. We have built our brand and reputation on the quality of our people, relationships, resources
and processes.
The Board is committed to ensuring that the tone in terms of the Group’s values is set from the top by both the
Board and senior management.
The Savills Code of Conduct helps aid the understanding and embodiment of behaviours that align employees with
the culture set by the Board, and underpins our social, ethical and environmental commitments. A confidential and
anonymous independently hosted ‘Speak-up’ facility is in place which enables employees to report any concerns
related to unethical conduct in any areas of the business. All disclosures are investigated promptly, overseen by the
Group Legal Director & Company Secretary and escalated to the Board as appropriate, with follow-up action being
taken as soon as practicable thereafter.
99
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GOVERNANCE
FINANCIAL STATEMENTS
Staff turnover, retention
and absenteeism rates
Internal audit
Action taken
Received and considered updates
on the risk and internal control
environments within the Group’s
Asia Pacific, North American,
CEME and UK businesses and
Savills Investment Management
Link to culture
Provides the Board with a direct
view to ensure that behaviours
are at the desired standard
and provides details of any the
corrective action being taken
Employee management
information
Action taken
Directors and senior managers
across the Group have attended
Purpose & Values workshops to
further understand how they can
apply our values internally, ensuring
that they are embedded into our
culture and leaders are guided in
how to lead more inclusively
Link to culture
This provides the Board
with insights into working
environments, employee
behaviours and attitudes and
enables the Board to assess how
working practices and behaviours
align with the purpose, values
and strategy of the Group
Modern slavery
Action taken
Reviewed and approved the
Group’s Modern Slavery Statement
Link to culture
This provides the Board with
a broad understanding of
practices and behaviours across
the Group, and how these align
with our values
Provides oversight of steps taken
to prevent modern slavery and
human trafficking within the
Group and its supply chain
Whistleblowing
Action taken
The Board receives reports
received via the Group’s
whistleblowing (‘Safe Call’)
system and received the progress
of related investigations
Link to culture
Speak-up reports provide the
Board with a view of the nature
of employee concerns and
trends in behaviours
Health & safety
information
Action taken
The Board receives health and
safety management data from
across the Group
Link to culture
Enables the Directors to assess the
effectiveness of safety practices
and behaviours
Direct Management
Action taken
The Board receives
presentations from senior
management across the Group
together with regular reports
Link to culture
This provides the Board
with direct insights into
behaviours and practices, and
the practical application of
policies and standards
Employee wellbeing
Training & development
(programme overview
and outputs)
Exit interviews
Whistleblowing,
grievance and ‘Speak-
up’ data
Promptness of
payments to suppliers
Employee surveys
Recruitment, reward
and promotion
decisions (overview)
How the Board assesses Savills culture
Our people-related KPIs
100
Annual Report and Accounts 2024
Our Suppliers
Our businesses have regular
engagement with their key
suppliers, in particular during
2024 in relation to the delivery
of the Group’s Net Zero Plan,
who are required to operate with
high service levels and the ethical
standards that are set out in our
Code of Conduct. We regularly
monitor the relationship and
engagement approach with our
third-party suppliers
LEADERSHIP AND COMPANY PURPOSE
continued
Stakeholder Engagement
Savills is a geographically and culturally diverse business
providing services in more than 70 countries. As a result,
it has a global and diverse community of stakeholders,
each with their own interests in, and expectations of
the Company.
Making a positive impact is at the heart of our
relationships. From the way we advise our clients,
to the work we do directly, we are committed to
adding commercial value while always honouring our
responsibility to protect the environment, support local
communities and foster an inclusive culture. We aim
to maintain open and positive dialogue with all our
stakeholders, considering their interests in our decision-
making and communicating with them on a regular basis.
Our stakeholders include not only clients, our
Shareholders and our people, but also suppliers and the
wider communities in which we operate. As noted in the
Company’s statement on Section 172 of the Companies
Act 2006 set out on page 103, in making their decisions
and in discharging their duties to promote the success
of the Company, the Directors must have regard to the
interests of its stakeholders.
We have summarised below why our stakeholders are
important to us, what we believe their principal interests
are and how the Board and Company seeks to engage
and respond.
The collective role of the Directors is to act as effective
and responsible stewards of the Company. In so doing,
the Board ensures that the Company is well positioned
to achieve long-term sustainable success and deliver
value for its stakeholders.
The Board oversees and receives regular updates
throughout the year on engagement activities with our
key stakeholders and engages directly with stakeholders
(receiving presentations and reports from the Executive
Directors and Group Executive Board (“GEB”)
members, and in relation to business for which they
have responsibility, senior management from across the
Group), but there is also significant engagement at all
levels across the Group, particularly in relation to people,
clients and suppliers, with the Board receiving regular
updates on stakeholder views. The Board maintains
oversight of this engagement and receives reports
and updates on such engagement from the Executive
Directors and senior management and is given the
opportunity to challenge these findings at Board and
Committee meetings. This information is used to inform
discussion and decision-making.
The Board develops its understanding of these key
stakeholder views in a number of different ways,
including the following.
Our Clients
Our clients are key to the success
of our business
Our People
Our people are our most valuable
asset. We firmly believe that
our people are key to delivering
excellent service to our clients and
achieving our objectives
Our Community
We believe that the community
engagement programmes that we
have developed have a positive
impact on the areas where our
people live and ensure that
Savills is firmly engaged with
the communities we serve
Our Shareholders
We believe that engaging with
our Shareholders, and encouraging
an open, meaningful dialogue
between Shareholders and the
Company is vital to ensuring
mutual understanding
Our Environment
We are committed to improving
the impacts our operations have
on the environment, managing
climate-related risks and working
together with our clients,
suppliers and local communities
towards delivering a more
sustainable future
Savills
101
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STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
We are focused on driving long-term sustainable performance for the benefit of our clients, Shareholders and wider
stakeholder groups. We aim to maintain an open and positive dialogue with all our stakeholders, considering their key
interests and communicating with them on a regular basis.
The Board remains committed to strengthening its engagement with employees and the Company’s wider stakeholder
group and considers the views of key stakeholders in its decision-making, recognising that they are central to the long-
term prospects of the Company.
Stakeholder group and why
we engage
How we engaged them in 2024
Further links
Our Clients
Our clients are key to the
success of our business.
We engaged in a variety of feedback activities, depending on the business area
and client segment.
We continued to run initiatives to ensure our people are continually upskilling
and learning.
We continued to host research and learning events where junior team members
have opportunities to create meaningful relationships consequently investing in our
clients of the future.
The quality of our service performance continues to be regularly assessed by
independent reviewers. This helps us better understand how we are managing
relationships and what we need to change to deliver the service and added value
our clients expect.
Client
engagement
page 81
Our People
People are at the core
of our business.
We aim to build a
trusting, respectful and
inclusive culture where
people feel engaged
and fulfilled.
We want our people to
be treated with dignity
at work and to have their
human rights respected.
Our people bring a diverse range of experience, expertise and perspectives that
contribute to our values and culture, and are essential for the delivery of excellent
service to our clients and achieving our strategic objectives. Understanding their
needs and motivations helps drive performance and enables us to make Savills an
inclusive place to work regardless of background.
It is vital for our continued success that we maintain an environment where our
people feel valued, motivated, and able to thrive. We have continued to focus on
employee engagement through a number of areas, including supporting the health
and wellbeing of our employees and our Principal Businesses have employee-
led groups in place covering areas such as diversity & inclusion, innovation, and
social mobility. Feedback received from these working groups is given to the ESG
Committee, and ultimately the Board. This included ‘Our Global Purpose and Values’
workshops to further understand how our people can apply our values internally,
ensuring that they are embedded into our culture and leaders are guided in how to
lead more inclusively.
We gather feedback regularly from our employees to assess their levels of
engagement. We treat all our people with dignity and respect, with support
against cost-of-living increases targeted to more junior employees and maintaining
our core bench-strength through challenging markets. During the year we
continued to utilise valuable multiple channels to communicate and engage with
employees, including regular town hall and other meetings, all-employee emails
and our intranet.
As part of our commitment to helping all our people to understand the Group’s
growth strategy and to raise other questions about the Group, our digital platform
allows direct employee communication (in local languages) with Non-Executive
Directors (including the Chair) to allow employee views to flow to the Board direct.
During 2024 we reviewed this facility to ensure that this remains an effective
mechanism for facilitating two-way communication directly between employees
and Board members.
We will continue to be a responsible employer in our approach to our people,
ensuring we communicate and engage regularly in a variety of ways. We are
always looking for opportunities to improve.
Employee
feedback
page 74
Diversity and
Inclusion pages
76 to 80
Engaging with
our people
page 105
102
Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
continued
Stakeholder group and why
we engage
How we engaged them in 2024
Further links
Our Community
We believe that the
community engagement
programmes that we have
developed have a positive
impact on the areas
where our people live
and ensure that Savills is
firmly engaged with the
communities we operate.
Our community engagement programmes across the Group have been developed
to have a positive impact on the areas where our people live and ensure that Savills
is firmly engaged with the communities in which we operate.
We are mindful that as a Company we do not work in isolation. To successfully engage
with local communities, we know that we need to adopt a range of approaches
e.g. charitable giving, volunteering events, pro bono work and work experience
opportunities to facilitate and participate in community interaction and cohesion.
This approach means we can establish and maintain effective connections, deliver
real benefit and remain proactive to the current issues that communities may be
facing. In 2024, 21,600 volunteering hours were given by our people. In addition,
over 495 pro bono hours were given.
Our Group’s ESG strategy is aligned with nine of the 17 UN Sustainable
Development Goals (‘SDGs’) to help us achieve our Sustainability objectives.
Read more about our community initiatives on pages 68 to 71.
Charity and
Community
involvement –
case studies on
pages 70 and 71
Our Environment
We are committed to
improving the impacts
our operations have
on the environment,
managing climate-
related risks and
working together with
our clients, suppliers
and local communities
towards delivering a more
sustainable future.
Making a meaningful contribution to a wider society enables us to create stronger
communities and have a positive environmental and social impact. Savills has
maintained focus on delivering its commitment to achieving Net Zero for its
operations (Scope 1 and 2) in 2030 and for its value chain (Scope 3) greenhouse
gas (GHG) emissions by 2040. Separately the Science Based Targets initiative
(SBTi) validated our near-term decarbonisation targets in February 2024 with, as
part of this, Savills being recognised by the Race to Zero and Business Ambition
for 1.5°C campaigns. Our near-term SBTi targets are:
§
a commitment to reduce absolute Scope 1 and 2 GHG emissions by 72% by
2030 from our 2019 base year
§
a commitment to reduce Scope 3 GHG emissions from purchased goods and
services by 51.6% per million GBP of value added by 2030 from our 2022 base year
§
a commitment to reduce Scope 3 GHG emissions from assets under Savills IM
discretionary management by 51.6% per square meter within the same timeframe.
Read more about our ESG strategy including carbon efficiency improvements, GHG
Emissions and TCFD reporting on pages 53 to 67.
Responsible
Business, our
ESG strategy
pages 38 to 82
Our Shareholders
We believe that engaging
with our Shareholders
and encouraging an open,
meaningful dialogue
between Shareholders
and the Company is
vital to ensuring mutual
understanding.
The Group Chief Executive and Group Chief Financial Officer have primary
responsibility for investor relations and lead a regular programme of meetings and
presentations with analysts and investors.
We build relationships with our Shareholders through our investor relations
programme which includes regular investor roadshows. These engagements
generated insightful feedback which was shared with the Board and the Company’s
Committees with due regard being given to these views. The Board also normally
receives feedback twice each year from the Company’s corporate brokers on
investors’ and the market’s perceptions of the Company.
The AGM provides the Board with an opportunity to engage with our Shareholders.
The Chair and the Senior Independent Director, Richard Orders, are also available
to meet Shareholders at all times when so required.
KPIs pages 18
and 19
Shareholder
engagement
page 105
Annual General
Meeting page 105
Our Suppliers
Our businesses have
regular engagement with
their key suppliers, who
are required to operate
with high service levels
and the ethical standards
that are set out in our
Code of Conduct.
The procurement choices we make can have a significant impact on people,
organisations and the wider environment. We have an obligation to ensure that
our supply chain and procurement practices follow appropriate standards.
We work with a broad range of supply-chain partners, particularly in our property
management businesses and work hard to ensure that we can deliver the best service
for our clients by building close and collaborative relationships with key suppliers.
Our Tiering framework ensures that the vast majority of the expenditure is placed
with service partners who sign up to our PM+ Core Principles and regular 360°
assessment is undertaken.
All suppliers are required to operate with high service levels and the ethical
standards that are set out in Savills Code of Conduct and our Modern Slavery and
Anti-Trafficking Statement.
We regularly monitor the relationship and engagement approach with our third-party
suppliers including communications received via the Company’s Speak-up policy.
We strive for continual improvement. We are committed to advancing our policies
and systems across the Company to ensure we address and monitor performance
in all aspects of sustainability that are relevant to the business.
Code of Conduct
page 82
Speak-up policy
page 82
Modern Slavery
statement
page 82
Stakeholder Engagement
continued
103
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Section 172(1) statement
The Board of Directors of Savills plc consider, both individually and together, that they have acted in the way they
consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as
a whole. In doing this, the Directors have had regard to stakeholders, and amongst other matters, to those set out in
s.172(1) (a-f) of the Companies Act 2006 in the decisions taken during the year ended 31 December 2024.
In the context of the Board’s activities during 2024, the table below sets out how the Directors have had regard to
the matters set out in Section 172(a-f) when discharging their Section 172 duties and decision-making.
Section 172 disclosure
Page
(a)
likely consequences of any decisions in the long term
Strategic Report
6 to 82
Board principal decisions
96 and 97
Consideration of stakeholder interests
100 to 102
Risk Management
119
(b)
interests of employees
Business model
10 and 11
People
74 to 80
Culture and ethics
72 to 82
Leadership and Company purpose
94
Engaging with our people
105
(c)
fostering the Company’s business relationships with suppliers, clients and others
Business model
10 and 11
Client care
81
Speak up
82
Human rights and modern slavery
82
Leadership and Company purpose
94
Board principal decisions
96 and 97
(d)
impact of the Company’s operations on the community and the environment
Environment
40 to 43
Community
68 to 71
GHG and energy data
53 to 58
TCFD disclosures
60 to 67
Stakeholder Engagement
101 and 102
(e)
maintaining a reputation for high standards of business conduct
Culture
72 to 82
Human rights and modern slavery
82
Speak up
82
Leadership and Company purpose
94
Risk management and internal controls
119
Audit Committee Report
120 to 128
(f)
acting fairly as between members of the Company
Strategic Report
6 to 82
Engaging with stakeholders
101 and 102
Remuneration Report
129 to 160
The above statement on section 172 of the Companies Act 2006 is incorporated by reference into the Strategic Report
on pages 6 to 82.
104
Annual Report and Accounts 2024
LEADERSHIP AND COMPANY PURPOSE
continued
Engaging with our Investors
The Board is committed to maintaining an open dialogue with investors which is achieved through a programme
of structured engagement. We regularly engage with our institutional Shareholders through an active investor
relations programme. During the year, the Group Chief Executive and Group Chief Financial Officer, who have
primary responsibility for investor relations, lead a regular programme of meetings and presentations with analysts
and investors. This includes presentations following the publication of the Company’s full and half-year results. This
programme maintains a continuous two-way dialogue between the Company and Shareholders, and helps to ensure
that the Board is aware of Shareholders’ views on a timely basis. These engagements generate insightful feedback
which is then shared with other Board members and Committees with due regard being given to these views. In
addition, the Board also normally receives feedback twice each year from its corporate brokers on investors’ and
the market’s perceptions of the Company. The Chair and Richard Orders as the Senior Independent Director are
also available to meet Shareholders at all times as required.
Engaging with our people
People are at the core of our business. The Board routinely invites members of the management team to join meetings
to present on the matters being discussed. In order to reach all employees, the Board utilises a combination of formal
and informal engagement methods which are detailed below.
In accordance with the Code, the Board continues to review the mechanisms that it uses to engage with its workforce.
Having considered the three mechanisms set out in the Code the Board is satisfied that reflecting the Group’s
geographic spread it was beneficial for all of the Non-Executive Directors to be engaged in the workforce engagement
programme, with each therefore to be ‘designated’ for workforce engagement purposes (rather than nominating
a single Non-Executive Director). The Board believes this enhances each of the Director’s engagement with, and
understanding of, workforce views, leverages cultural awareness and is more efficient (in that it does not require a
single designated Non-Executive Director to engage across all of the Group’s diverse geographic markets).
Ask the Board
In December 2018, we introduced a digital platform to allow direct employee communication with Non-Executive
Directors (including the Chair) in areas of focus (such as strategy, training & development opportunities; measurement
of staff performance and promotion criteria; diversity; and flexible working). During 2024 we reviewed this facility to
ensure that this remains an effective mechanism for facilitating two-way communication directly between employees
and Board members.
The Board will continue to assess the effectiveness of its engagement with the workforce and how ultimately this
informs the decisions that it takes, including the options provided for in the Code.
How the Board factored employee engagement into its decisions in 2024 – page 105.
More detail about our commitment to our people is set out in the Responsible business section of this Annual Report
and Accounts in the Strategic Report on pages 38 to 82.
Section 172(1) statement
continued
105
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Employee Surveys
We gather feedback regularly from
our employees to assess their levels
of engagement.
Working Groups
Our principal businesses have
employee-led groups in place covering
areas such as diversity & inclusion,
innovation, and social mobility.
Feedback received from these
working groups are given to the ESG
Committee, and ultimately the Board.
Our Diversity & Inclusion Groups –
pages 77 to 79.
Access to Non-
Executive Directors
Our digital platform which allows
direct employee communication (in
local languages) with Non-Executive
Directors (including the Chair) in areas
of focus (such as strategy, training
and development opportunities;
measurement of staff performance
and promotion criteria; diversity;
and flexible working).
Town Hall/Employee
briefings
We hold town hall meetings within
our Principal Businesses, and other
events, in particular focusing on
wellbeing and mental health issues,
supported by webinars provided by
external providers.
Speak-up
We operate independently hosted
confidential and anonymous Speak-up
services which enable employees to
report any concerns related to unethical
conduct in any areas of the business.
All disclosures are investigated promptly
overseen by the Group Legal Director
& Company Secretary and escalated
to the Board as appropriate, with
follow-up action being taken as soon
as practicable thereafter.
Social Media
A variety of social media channels are
utilised to enhance engagement and
the exchange of information on the
Company’s activities to all stakeholders.
These channels include X (formerly
Twitter), Instagram and our intranet.
In particular our intranet is used as a
platform for employees to access our
policies and to receive information
on wellbeing, health and safety,
and training.
Employee Engagement
Engaging with our Shareholders
AGM
The Annual General Meeting (‘AGM’) provides the
Board with an opportunity to engage and communicate
with, and answer questions from, private and
institutional Shareholders.
All Shareholders are invited to attend the AGM in person,
have access to our website and the choice to receive
electronic communications. The AGM provides an
opportunity for the Directors to engage with Shareholders,
answer their questions and to meet them informally.
The AGM 2025 will be held on 14 May 2025 at 12pm at
33 Margaret Street, London, W1G 0JD. We encourage all
Shareholders not attending in person on the day to vote
by proxy in advance of the meeting on all resolutions put
forward as Shareholders will not be able to vote on the
day if they are not attending in person. The Chair of each
of the Committees will be available at the AGM to answer
questions. Directors are available before and during the
meeting to answer questions from Shareholders and to
meet with Shareholders following the conclusion of the
formal part of the meeting.
Further details are included in the Notice of AGM and
documentation accompanying the proxy form which
will be sent out at least 20 working days before the
meeting (at least 15 working days’ notice would be given
before other general meetings). In accordance with
the Company’s Articles of Association, electronic and
paper proxy appointments and voting instructions must
be received not later than 48 hours before a general
meeting. All votes are taken by a poll and the level and
manner of voting of proxies lodged on each resolution at
the AGM is declared at the meeting and published on the
Company’s website. All resolutions were passed at the
2024 meeting in line with the Board’s recommendations.
Corporate website
The Company’s website http://www.ir.savills.com has
a section dedicated to investors where a range of
valuable information can be found including:
§
A financial calendar of events
§
Published annual results and
results announcements
§
Details of the Company’s corporate
governance arrangements
§
Board and Committee profiles
§
The Group’s ESG strategy
§
Regulatory announcements.
The Company has taken advantage of the provisions
within the Companies Act 2006 which allow
communications with Shareholders to be made
electronically, where Shareholders have not requested
hard-copy documentation. Details of the information
available to Shareholders can be found on page 287.
106
Annual Report and Accounts 2024
DIVISION OF RESPONSIBILITIES
A robust governance framework
The Board is committed to the highest standards of
corporate governance and risk management which is
demonstrated in its established corporate governance
framework as illustrated on pages 107 and 108.
The Board leads the Group’s Governance structure.
In line with the requirements of the Code, the Board
comprises a majority of Independent Non-Executive
Directors. The Nomination & Governance Committee
considers the independence of the Non-Executive
Directors annually, having regard to the independence
criteria set out in the Code. As part of this process, the
Board keeps under review the length of tenure of all
Directors, which can affect independence. The Board
remains satisfied that it has the appropriate balance
of skills, experience, independence and knowledge
to ensure we continue to run the business effectively
and deliver sustainable growth.
Board Committees
The Board has established three principal Committees
to which it has delegated certain of its responsibilities,
as set out below. The roles, membership and activities
of these Committees can be found in the pages
which follow.
Group Executive Board (‘GEB’)
The Group Chief Executive is supported by the GEB.
The GEB is the key management committee of the
Group. It is chaired by the Group Chief Executive and
comprises the Group Chief Financial Officer, the Heads
of the Principal Businesses and the Group Legal Director
& Company Secretary. The GEB meets regularly, and
under the leadership of the Group Chief Executive the
GEB is responsible for the day-to-day management
of the Group including overseeing the development
and implementation of strategy, capital expenditure,
and investment budgets, for the ongoing review and
control of the Group’s principal existing and emerging
risks and uncertainties as detailed on pages 30 to 36
and reporting on these areas to the Board for approval,
implementing Group policy, monitoring financial and
operational performance of the Group and other specific
matters delegated to it by the Board. The Group Chief
Executive is also supported by Regional Service Line
Strategy Groups which are tasked with the continuous
development of service line offerings, client relationship
management and the development and sharing of best
practice in each region, in particular to ensure that the
Group’s offering across its key service lines continues to
evolve to meet new client requirements and to ensure a
consistent approach across the Group. An explanation
of how the Group creates and preserves value, and the
strategy for delivering its objectives is included in the
Strategic Report on pages 6 to 82.
§
Has primary responsibility for providing
entrepreneurial leadership for the Group
§
Oversees the overall strategic development of
the Group and approves the strategy to achieve
the Group’s strategic aims
§
Sets the Group’s values and standards
§
Ensures effective governance and risk
management and that the Group’s businesses
act ethically and that obligations to
Shareholders are understood and met
§
Delegates the management of the day-to-day
operation of the business to the Group Chief
Executive, supported by the Group Executive
Board subject to appropriate risk parameters.
The Board has adopted a formal schedule of matters specifically
reserved to it for decision-making. A full schedule of matters reserved
for the Board’s decision along with the Terms of Reference of the
Board’s principal Committees can be found on the Company’s website
at http://ir.savills.com
OVERVIEW OF THE
BOARD’S RESPONSIBILITIES
107
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Division of the responsibilities
Board:
(During 2024: Chair, two Executive Directors and seven Non-Executive Directors).
Audit Committee
Principal Business Executive Committees
§
Responsible for assisting the
Board in fulfilling its financial
and risk responsibilities, and in
particular for ensuring that the
financial statements are fair,
balanced and understandable
§
Oversees external financial
reporting, internal control,
risk management and reviews
the work of the Internal and
External Auditors
§
Advises the Board on
the appointment of the
External Auditors.
Chair:
John Waters
Number of meetings in the year:
5
For more information
see pages 120 to 128
§
Lead each Principal Business
§
Responsible for the day-to-day management of the relevant Principal Business
§
Oversee the development and implementation of strategy, capital expenditure, and investment budgets for
the ongoing review and control of Group risks, reporting on these areas to the Group Executive Board and,
as necessary, the Board for approval
§
Implement Group policy
§
Monitor financial and operational performance of the relevant Principal Business and other specific matters
delegated to them by the Group Executive Board.
§
Responsible for the broad
policy governing senior staff
pay and remuneration
§
Sets the actual levels of all
elements of the remuneration
of the Executive Directors,
and Group Executive
Board members.
Chair:
Richard Orders
Number of meetings in the year:
4
For more information
see pages 129 to 160
§
Responsible for size, structure
and composition of the Board
§
Reviewing and progressing
appointments to the Board
§
Responsible for succession
planning at Board and senior
management-level to ensure
that (i) the Board is refreshed
progressively such that the
balance of skills and experience
available to the Board remains
appropriate to the needs of
the business; and that (ii) the
Group has the necessary talent
bench-strength to ensure
seamless succession at senior
management-level
§
Makes recommendations to
the Board on the membership
of the principal Committees of
the Board
§
Monitoring of the Company’s
compliance with applicable
codes and other requirements
of Corporate Governance.
Chair:
Stacey Cartwright
Number of meetings in the year:
2
For more information
see pages 112 to 118
Remuneration Committee
Nomination & Governance Committee
108
Annual Report and Accounts 2024
DIVISION OF RESPONSIBILITIES
continued
Division of the responsibilities
continued
Plc Board
Group ESG Committee
Group Chief Executive
Group ESG Committee
§
Responsible for the day-to-day
management of the Group.
§
Responsible (with the Group
Risk Committee) for overseeing
climate risk assessment and
other aspects of the Group’s
ESG agenda
§
Tracks and monitors the delivery
of the Group-wide ESG targets
which are aligned to the nine UN
Sustainable Development Goals.
Chair:
Group Legal Director &
Company Secretary
§
Key executive management committee of the Group
§
Responsible for the day-to-day management of the Group
§
Oversees the development and implementation of strategy, capital
expenditure, and investment budgets, for the ongoing review and control
of Group risks, reporting on these areas to the Board for approval
§
Implements Group policy
§
Monitors financial and operational performance of the Group and
other specific matters delegated to it by the Board.
Chair:
Group Chief Executive
Composition:
Group Chief Financial Officer, the Heads of the Principal
Businesses and the Group Legal Director & Company Secretary
§
Identifies and evaluates Group-level risks
§
Reviews and challenges risks reported by subsidiaries
§
Champions the ongoing Group-wide development of risk management
and the internal controls framework
§
Monitors Internal Audit and other sources of assurance on the
effectiveness of internal controls
§
Reviews ESG risk, including but not limited to TCFD-related items and
these are escalated as appropriate.
Group Executive Board
Group Risk Committee
109
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Roles on the Board
The Board comprises Executive and Non-Executive Directors, such that no one individual or small group of
individuals dominates the Board’s decision-making. The Non-Executive Directors are all deemed to be independent.
To help ensure a proper dialogue with all Directors, the Chair meets periodically with the Directors individually and the
Non-Executive Directors as a group (and without the Executive Directors). The role descriptions of the Chair, Group
CEO and SID are reviewed annually by the Board and are updated as necessary to reflect changes in legislation or
best practice.
Roles and responsibilities of the Directors:
Non-Executive
Chair
Stacey Cartwright
The roles of Chair and Group Chief Executive are distinct and separate and their roles
and responsibilities are clearly established.
The Chair is responsible for:
§
leading the Board and its overall effectiveness;
§
demonstrating objective judgement;
§
promoting a culture of openness and constructive challenge and debate between
all Directors;
§
facilitating constructive Board relations and the effective contribution of all Non-Executive
Directors; and
§
ensuring Directors receive accurate, clear and timely information.
To help ensure a proper dialogue with all Directors, the Chair meets periodically with
the Directors individually and the Non-Executive Directors as a group (and without the
Executive Directors).
Group Chief
Executive
Officer
Mark Ridley
The Group Chief Executive has responsibility for all Group businesses and acts in accordance
with the authority delegated by the Board. There are a number of areas where the Board has
delegated specific responsibility to management, including responsibility for the operational
management of the Group’s businesses as well as reviewing strategic issues and risk matters
in advance of these being considered by the Board and/or its Committees.
Group Chief
Financial
Officer
Simon Shaw
The Group Chief Financial Officer supports the Chief Executive in developing and
implementing the Group’s strategy and in particular:
§
leads the global finance function and develops key finance talent;
§
ensures effective financial reporting, processes and controls are in place;
§
recommends the annual budget and long-term strategic and financial plan; and
§
chairs the Group’s Proptech investment ‘fund’, Grosvenor Hill Ventures.
Independent
Non-Executive
Directors
Andi Karaboutis
Philip Lee
Richard Orders
Dana Roffman
Marcus Sperber
Florence Tondu-
Mélique
John Waters
§
Monitor and challenge the performance of management;
§
assist in approval and review of strategy;
§
review Group financial information and provide advice to management;
§
engage with stakeholders and provide insight as to their views, including in relation to
employees and the culture of the Group; and
§
as part of the Nomination & Governance Committee, review the succession plans for the
Board and key members of senior management.
Senior
Independent
Non-Executive
Director
Richard Orders
Provides a sounding board for the Chair and acts as a trusted intermediary for the Directors
as required; and is available to respond to Shareholder concerns when contact through the
normal channels is inappropriate.
Group Legal
Director &
Company
Secretary
Chris Lee
The Group Legal Director & Company Secretary, whose appointment is a matter reserved for
the Board, is responsible for advising and supporting the Chair and the Board on company law
and corporate governance matters and for ensuring that Board procedures are followed, as
well as ensuring that there is a smooth flow of information to enable effective decision-making.
The Group Legal Director & Company Secretary is further responsible for ensuring that the
Directors receive regular updates on developments in legal and regulatory matters. All the
Directors have access to the advice and services of the Group Legal Director & Company
Secretary and through him have access, if required, to independent professional advice in
respect of their duties at the Company’s expense.
110
Annual Report and Accounts 2024
DIVISION OF RESPONSIBILITIES
continued
Division of the responsibilities
continued
Board composition and diversity
The Board’s composition, tenure and diversity
characteristics can be found on pages 86 and 87. The
biographical details of the Directors can be found on
pages 88 to 90 which show the breadth of their skills
and experience, why their contribution is important to
the Company’s long-term sustainable success, and their
membership of the Board’s various Committees.
Further details regarding diversity and inclusion at
Savills can be found on pages 76 to 80.
Independence of Non-Executive Directors
On an annual basis, the Board reviews the
independence of its Non-Executive Directors. Non-
Executive Directors (‘NEDs’) are expected to exercise
independent judgement and to be free from any business
or other relationship that could materially interfere with
it. This independence is crucial in bringing constructive
challenge to the Group CEO and management at Board
meetings, while providing support and guidance to
promote meaningful discussion and, ultimately, informed
and effective decision-making. Directors are required
to provide sufficient information to allow the Board
to evaluate their independence prior to and following
their appointment.
The Board considers that all of the Non-Executive
Directors bring considerable expertise, strong
independent oversight and are Independent Non-
Executive Directors, being independent of management
and having no business or other relationship which could
interfere materially with the exercise of their judgement.
Outside interests and conflicts
The Board has adopted guidelines for dealing with
conflicts of interests. All potential new Directors are
asked to disclose their other significant commitments.
The Nomination & Governance Committee takes this into
account when considering proposed appointments to
ensure that Directors can discharge their responsibilities
to the Group effectively. This means not only attending
and preparing for formal Board and Committee
meetings, but also making time to understand the
business, and to undertake training.
The time commitment is agreed with each Non-
Executive Director on an individual basis. In addition,
all Directors must seek approval before accepting any
significant new commitment. The Board is satisfied
that the Chair and each of the Non-Executive Directors
committed sufficient time during the year to enable them
to meet their Board responsibilities and fulfil their duties
as Directors of the Company.
111
GOVERNANCE
FINANCIAL STATEMENTS
STRATEGIC REPORT
OVERVIEW
For the year ended 31 December 2024 and as at the
date of publication of this Annual Report, the Board is
satisfied that none of the Directors is over-committed
and that each of the Directors allocates sufficient
time to his or her role in order to discharge their
responsibilities effectively.
Indemnification of Directors
In accordance with the Company’s Articles of
Association, and to the extent permitted by law, the
Directors and the Group Legal Director & Company
Secretary are granted an indemnity, in respect of any
liabilities incurred as a result of their holding office.
Such indemnities were in force during the financial year
to 31 December 2024 and up to the date of this Report.
The Company also maintains appropriate insurance
cover in respect of legal action against its Directors
and Officers.
Conflicts of interest procedure
The Companies Act 2006 places a duty on each
Director to avoid a situation in which he or she has or
can have a direct or indirect interest which conflicts
or may conflict with the interests of the Company. A
Director will not be in breach of that duty if the relevant
matter has been authorised by the other Directors in
accordance with the Company’s Articles of Association.
Procedures are in place for the disclosure by Directors
of any interest that conflicts, or possibly may conflict,
with the Company’s interests and for the appropriate
authorisation to be sought if a conflict arises. The Board,
or the Nomination & Governance Committee on its
behalf, reviews actual and situational conflicts of interest
at least annually and as necessary if and when a new
potential situational conflict is identified or a potential
conflict situation materialises. During 2024, the actual
and situational conflicts of interest that were identified
by each Director were reviewed and authorised by the
Board, subject to appropriate conditions in accordance
with the guiding principles. The procedures adopted
to deal with conflicts of interest continue to operate
effectively and the Board’s authorisation powers
continue to be exercised properly in accordance with
the Company’s Articles of Association.
112
Annual Report and Accounts 2024
COMPOSITION, SUCCESSION AND EVALUATION
The Nomination & Governance
Committee (‘Committee’) has a key role
to play in ensuring that the Board and
its principal Committees have the right
mix of skills, experience and diversity
to deliver Group strategy and to create
value. The Committee keeps under
review and evaluates the composition
of the Board and its Committees to
maintain the appropriate balance of
skills, knowledge and independence
to be able to function effectively.”
Dear Shareholder
On behalf of the Board, I am pleased to present the
Nomination & Governance Committee’s Report for
the financial year ended 31 December 2024. The key
objectives of the Committee are to regularly review
the skills and experience of the Board to ensure that it
is the right size, structure and composition taking into
account the skills, experience, independence, knowledge
and diversity of Directors and the future strategy of
the Group. It is also the Committee’s role to consider
succession planning for the Board and senior executives
below Board level and in this regard to oversee the
development of a diverse pipeline for succession and
to lead on the process for Board.
The Committee has continued to focus on succession
planning, and within this further seeking to facilitate
greater diversity and inclusion at Board and senior levels
with specific focus below this level. In this regard Board
membership is compliant with the FTSE Women Leaders
and Parker guidelines, and the proportion of women in
senior leadership positions (as defined by FTSE Women
Leaders) as at October 2024 was 36.8% (2023: 37.1%).
The Committee will continue to ensure the Board has in
place an effective leadership with the skills, experience
and diversity to match our strategic aims and ambition.
Stacey Cartwright
Chair of the Nomination & Governance Committee
12 March 2025
Nomination & Governance Committee Report
COMMITTEE MEMBERS
Stacey Cartwright
Philip Lee
Richard Orders
Mark Ridley (Executive Director)
Dana Roffman
Marcus Sperber
Florence Tondu-Mélique
John Waters
Andi Karaboutis
(with effect from 14 March 2024)
Stacey
Cartwright
Chair
113
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The primary objectives of the Committee are:
§
to review the size and composition of the Board and its key Committees and to plan for the Board’s
progressive refreshing, with regard to balance and structure
§
to monitor the Company’s compliance with applicable codes and other requirements of corporate
governance including the Code.
The Committee has standing items that it considers regularly under its Terms of Reference; for example, the
Committee reviewed its own Terms of Reference (which are reviewed at least annually or as required, e.g. to
reflect changes to the Code or as a result of changes in regulations or best practice).
Specifically during the year, the Committee:
§
Considered the proposed reappointment of the Non-Executive Directors, before making a recommendation
to the Board that each Non-Executive Director be proposed to Shareholders for re-election at the 2025 AGM
§
Led the process which resulted in the appointment of Andi Karaboutis to the Board.
KEY OBJECTIVES
PRINCIPAL ACTIVITIES DURING THE YEAR
§
Responsible for size, structure and composition of the Board
§
Reviewing and progressing appointments to the Board
§
Responsible for succession planning at Board and senior management level to ensure that (i) the Board
is refreshed progressively such that the balance of skills and experience available to the Board remains
appropriate to the needs of the business; and that (ii) the Group has the necessary bench-strength of
talent to ensure seamless succession at senior management level
§
Makes recommendations to the Board on the membership of the principal Committees of the Board
§
Monitoring of the Company’s compliance with applicable codes and other requirements of
corporate governance.
More detailed information on the role and responsibilities of the Committee can be found in the Committee’s
Terms of Reference which can be accessed on the Company’s website at http://ir.savills.com
MAIN RESPONSIBILITIES
114
Annual Report and Accounts 2024
COMPOSITION, SUCCESSION AND EVALUATION
continued
Nomination & Governance Committee Report
continued
The Committee met two times during 2022. Individual
attendance by Directors at this meeting is shown in
the table on page 95. Members of the Committee also
normally attend the Company’s AGM at which there is
an opportunity to meet with Shareholders. Any other
Director, the Group Legal Director & Company Secretary
or an external advisor may be invited by the Committee
to attend the meetings from time to time, as appropriate.
Changes to the Board and Committees
During the year to 31 December 2024, there were the
following changes to the Board:
§
Stacey Cartwright was appointed Chair with effect
from the date of the retirement of Nicholas Ferguson
on 1 January 2024
§
Richard Orders replaced Stacey Cartwright as
the Senior Independent Director with effect from
1 January 2024
§
John Waters replaced Stacey Cartwright as Chair of
the Audit Committee with effect from 1 January 2024
§
Andi Karaboutis was appointed as an additional
Independent Non-Executive Director on
14 March 2024.
Succession planning
The Board and Committee remain focused on talent
planning, and the development of a diverse succession
pipeline and Board succession is a key topic at
Committee meetings. Board and senior management
succession plans, which are based on merit and are
assessed against objective criteria, are reviewed
annually by the Committee. The Committee monitors
the length of tenure and the skills and experience of
the Non-Executive Directors to assist in succession
planning. The Committee continues to keep the
Board’s composition under review and considers how
that composition might be enhanced to ensure that
the Board continues to best meet the needs of the
Company and its Shareholders. The biographies of the
Board members appear on pages 88 to 90.
The Committee will continue to monitor the needs of
the Board and its Committees in the context of the
delivery of the Group’s strategy, with the aim of ensuring
that the Group’s succession planning policy evolves
such that there is an identifiable supply of talent and
experience available to the Board and its Committees
from which to select successors.
No Director is involved in decisions regarding his or
her own succession. The Committee also monitors
the development of the executive team below the
Board to ensure that there is a diverse supply of senior
executives and potential future Board members with
the appropriate skills and experience.
115
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Search for an additional NED
The Board recognises the benefit of progressively refreshing its membership and therefore commenced the search
for an additional Independent Non-Executive Director in 2023.
The Committee led the process which resulted in the appointment of Andi Karaboutis to the Board. The Committee
assessed the balance of skills, knowledge, independence, experience and diversity of the Board and, in view of this
assessment, a description of the role and competencies needed was agreed, with a view to appointing the best
qualified individual for the role. Heidrick & Struggles was selected to lead the search due to its specialist knowledge
of recruiting at Board-level.
Heidrick & Struggles provided a longlist of potential candidates and first-stage interviews were led by the Chair of the
Committee. In making the recommendation to the Board on the proposed appointment, the Nomination & Governance
Committee specifically considered the expected time commitment of the proposed Non-Executive Director and the
other commitments that they already had. A final shortlist of candidates was selected for final-stage interviews with
the Chair, Group Chief Executive Officer and Senior Independent Director. The Committee was unanimous in their
recommendation to the Board that Andi Karaboutis be appointed as additional Independent Non-Executive Director,
and was delighted to welcome Andi to the Board on 14 March 2024.
The five stages of the appointment process of Andi to the Board is set out below:
Step 1
Step 2
Step 3
Step 4
Step 5
Engaged with
Heidrick & Struggles
and provided
them with a search
specification
Shortlisting of
candidates by the
Committee
Interview process
with Committee
Members
Recommendation
to the Board of the
chosen candidate
Appointment terms
drafted and agreed
Andi Karaboutis’ biography
SEE PAGE 90
116
Annual Report and Accounts 2024
COMPOSITION, SUCCESSION AND EVALUATION
continued
Nomination & Governance Committee Report
continued
Director reappointment
All Non-Executive Directors undertake a fixed term of
three years subject to annual re-election by Shareholders.
The fixed term can be extended, and consistent with
best practice, would not go beyond nine years unless
exceptional circumstances were deemed to exist.
The current length of tenure for the Chair and each of
the Non-Executive Directors as at 31 December 2024 is
set out on pages 88 to 90.
The Board reviews Non-Executive Director independence
on an annual basis and takes into account the individual’s
experience, their behaviour at Board meetings and their
contribution to unbiased and independent debate. The
Board considers that all of the Non-Executive Directors
bring considerable management expertise and strong
independent oversight.
In accordance with the 2018 UK Corporate Governance
Code (the ‘Code’), all of the Directors will stand for
election/re-election as appropriate at the 2025 AGM on
14 May 2025. The Chair has confirmed that the Non-
Executive Directors standing for reappointment at
this year’s AGM continue to perform effectively, both
individually and collectively as a Board, and that each
Non-Executive Director demonstrates commitment
to their roles and continues to provide constructive
challenge, strategic guidance and offer specialist advice,
as well as holding management to account. As can be
seen from the attendance records set out on page 95,
Directors’ attendance levels have been consistently high
throughout the year ended 31 December 2024.
Diversity
Board and Group diversity
At Board level, the approach to appointing new Directors
reflects the Committee’s objective of ensuring that there
is always an appropriate balance of experience and
backgrounds on the Board. Great emphasis is placed
on ensuring that Board membership embodies diversity
in its broadest sense. For this reason, members of
the Board are drawn from a wide range of disciplines,
industries and cultures. As an international business, we
benefit from our Non-Executive Directors’ knowledge
of and involvement with other businesses across Asia,
Europe and the UK and North America.
As reported on page 87, the FCA’s UK Listing Rules
sourcebook now set board diversity targets that at least
40% of the board are women, at least one of the roles
of Chair, CEO, CFO and SID is held by a woman, and at
least one director is from a minority ethnic background.
During the year the Company has met all of the above
targets In respect of ethnic diversity, the Board’s
composition is also in accordance with the Parker Review
recommendation that at least one Director is from an
ethnic minority background by 31 December 2024.
The benefits of diversity, in terms of age, ethnicity,
skills, experience and socio-economic background are
an active consideration in all recruitment decisions,
as well as in our talent development programme.
The Committee is responsible for overseeing the
development of a diverse pipeline for succession to
senior management. The Board has a longstanding
commitment to prioritise diversity and supports the
FTSE Women Leaders Review on gender diversity and
the Parker review on ethnic diversity.
For the purposes of complying with the requirements
of the Code Provision 23, Senior Management is
defined as the Group Executive Board (‘GEB’). As at
31 December 2024 the GEB members and their direct
reports totalled 185 of which 44 were female, 141 were
male. Accordingly, our Group Women in Leadership
percentage (determined in accordance with the FTSE
Women Leaders Review criteria) was 36.7% as at
31 October 2024. Our previous year Group Women in
Leadership percentage as reported by the FTSE Women
Leaders Review was 37.1% (as at 30 October 2023).
The Committee supports the initiatives taking place
across the Group’s businesses to improve diversity,
including work to further strengthen the pipeline of
women through a managed career path and improved
access to opportunities. More details on the Group’s
diversity and inclusion initiatives can be found on pages
76 to 80. Information on Board and Executive Committee
gender and ethnicity can be found on page 87.
117
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Board and Committee evaluation
2022 External
Board Evaluation
2024 Internal
Board Evaluation
2023 Internal
Board Evaluation
The performance and effectiveness of the Board and its Committees is assessed annually through a formal
performance evaluation process. In accordance with the Code requirements, the Board believes that an external
independent evaluation of Board effectiveness and performance, and that of its principal Committees, at least every
three years brings further insight into its performance. As well as looking to continually improve the Board’s processes,
the evaluation process is used to reflect on areas that the Board would like to see more focus on.
Board and Committee evaluation
The Board recognises that it continually needs to monitor
and improve its performance. In line with the effective
governance requirements of the Code, the Board reviews
its own performance and that of the Directors and of its
Committees annually.
2024 process
This year’s evaluation was conducted in-house, led by
Richard Orders, as SID, and facilitated by the Group Legal
Director & Company Secretary. The evaluation undertaken
involved each Board member completing a questionnaire
which was then used as the basis of a confidential
interview. The matters covered by the evaluation included
Board structure, Board effectiveness, working practices,
relationships with Shareholders and interaction between
Board members and management. The output of the
evaluation was presented to the Board in March 2025 and
the Directors discussed the points raised by the review.
Conclusion from the 2024 evaluation
The conclusion from this year’s evaluation was that
the Board and its Committees continued to operate
to a high standard and to provide effective leadership,
and exert the required levels of governance and control.
In particular, Board members agreed that the Board
was a cohesive, open and constructive forum and was
focussed on the right issues, striking a good balance
between strategic thinking and assurance.
It was also considered that the Board had an effective
balance of skills and experience, that was an appropriate
dialogue between the executive and non-executive directors
and that the Board was capably and inclusively chaired. The
Board’s Committees were also considered to be continuing
to work well, and to be well-chaired and supported.
Areas of focus for 2025
Reflecting the output from the 2024 Board Evaluation,
the additional areas for Board focus, which would be added
to the Board’s 2025 workplan, were agreed as follows:
(a) Ensuring that the Board has an appropriate
understanding of broader stakeholder views by
in particular meeting key Company stakeholders,
such as key clients, and, to ensure its understanding
of investor perceptions, the Company’s corporate
brokers more regularly
(b) Ensuring that in terms of broader succession planning,
the Board has good exposure to the Group’s levels of
management below Group Executive Board level.
118
Annual Report and Accounts 2024
COMPOSITION, SUCCESSION AND EVALUATION
continued
As a result of the evaluation, the Board considers
the performance of each Director to be effective and
concluded that both the Board and its Committees
continue to provide effective leadership and exert the
required levels of governance and control. Shareholders
would therefore be recommended to re-elect Board
Members at the AGM in May.
Following this review, we are satisfied that the Board
continues to perform effectively and in particular are
confident that the Board has the right balance of skills,
experience and diversity of personality to continue to
encourage open, transparent debate and challenge.
Board induction, training and development
Following appointment, all Directors receive a
comprehensive and tailored induction programme.
Induction programmes are facilitated by the Chair and
the Group Legal Director & Company Secretary and
tailored to the Director’s individual roles and needs. The
induction process is designed to develop the Director’s
knowledge and understanding of the Group covering
key areas including the Group’s purpose, values, culture
and strategy, its corporate governance, risks and internal
controls and the markets in which it operates. New
Directors are also provided with information on relevant
share dealing policies, Directors’ duties, Company
policies and governance.
The induction also includes one-to-one briefings
from the Heads of the Principal Businesses and an
introduction to each Group business’s development
strategy with the content of meetings varying
depending on the Director being inducted and their
background and individual experience.
Our induction programme for new Directors is
delivered through:
§
meetings with the Chair, wider Board, Group
Legal Director & Company Secretary and relevant
Committee Chairs;
§
a structured programme of meetings with the Group
Executive Board members and senior management
to provide a deeper understanding of risks and
opportunities and stakeholder interests;
§
meetings with advisors, including the External Auditor,
to provide a valuable external perspective; and
§
training as appropriate on key policies, statutory
duties and legal and governance requirements.
To enable the Board to discharge its duties, all Directors
receive appropriate and timely information, including
briefing papers distributed in advance of Board meetings.
The Board strongly supports the ongoing development
of its members and any Director can request further
information to support the fulfilment of their individual
duties or collective Board role throughout the year.
Governance
The Committee reviewed the Company’s compliance
with the Code and was satisfied that the Company
complied with the Code. The Committee will continue to
receive updates on corporate governance developments
and will consider the impact of those developments on
the Company.
Stacey Cartwright
Chair of the Nomination & Governance Committee
12 March 2025
Nomination & Governance Committee Report
continued
119
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
AUDIT, RISKS AND INTERNAL CONTROLS
Review of the effectiveness of the risk
management and internal control systems
The principal existing and emerging risks and
uncertainties faced by the Group and the associated
mitigating actions for these are set out on pages
30 to 36.
The Board, assisted by the Audit Committee, is
responsible for reviewing the operation and effectiveness
of the Group’s internal controls. The internal control
system is designed to manage rather than eliminate the
risk of failure to achieve business objectives and can
provide only reasonable and not absolute assurance
against material misstatement or loss.
The Board is also responsible for ensuring that
appropriate systems are in place to enable it to identify,
assess and manage key risks. This responsibility
includes the determination of the nature and extent
of the principal risks the Board is willing to take to
achieve its strategic objectives and for ensuring that an
appropriate culture has been embedded throughout
the organisation. The Board’s attitude and appetite to
risk is communicated to the Group’s businesses through
the strategy planning processes.
The Board is supported by the Audit Committee in
discharging its oversight duties with regard to internal
control and risk management. During the year, the
Audit Committee on behalf of the Board, reviewed the
effectiveness of the risk management systems and
internal control systems, including financial, operational
and compliance controls. The Board did not identify
any significant failings or weaknesses in the year. Taking
into account the principal existing and emerging risks
and uncertainties set out on pages 30 to 36, and the
ongoing work of the Audit Committee in monitoring
the risk management and internal control systems on
behalf of the Board, the Board remains satisfied that the
review of internal controls did not reveal any significant
weaknesses and they continue to operate effectively.
120
Annual Report and Accounts 2024
John
Waters
Chair of
the Audit
Committee
I am pleased
to present the
Audit Committee’s
report for the
financial year ended
31 December 2024.”
The Committee’s report is intended to provide insight
into its activities during the year and sets out how it
has performed against its key objectives and how the
Committee has met the disclosure requirements as set
out in the Code. The key matters considered in the year
are set out on page 124.
This report provides an overview of the significant issues
that the Audit Committee assessed and details the
Committee’s major considerations and activities during
the 2024 financial year in ensuring that the Company’s
governance processes remain appropriate, robust, of a
high standard and are rigorously applied.
The Committee has discharged its responsibilities over
the year by providing effective independent oversight,
with the support of management and the External
Auditor. During the year, the Committee continued to
play a key role in assisting the Board in its oversight
of financial reporting and auditing matters, including
reviewing and monitoring the integrity of the Group’s
financial statements, the Group’s systems of internal
control and risk management, and the internal and
external audit processes. The Committee, and its
individual members, seek to act in a way to promote the
success of the Company for the benefit of its members
as a whole, including Shareholders, in accordance with
s.172 of the Companies Act 2006. This ensures that
the interests of the Group’s Shareholders, and broader
stakeholders, are properly considered and reflected in
the Committee’s decision-making processes.
Audit Committee Report
COMMITTEE MEMBERS
AUDIT, RISKS AND INTERNAL CONTROLS
continued
John Waters (Chair)
Philip Lee
Florence Tondu-Mélique
Marcus Sperber
Andi Karaboutis
121
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The Committee met five times during the year and the
detail of attendance is found on page 95.
I would like to welcome Andi Karaboutis, who joined the
Committee on her appointment to the Board in March
2024 and has extensive relevant experience in similar
organisations gained over many years.
During the year the Committee considered the
effectiveness of the Group’s internal controls and
reviewed the Group’s principal risks and uncertainties,
to ensure the alignment of these with the Company’s
strategic objectives and risk appetite. It monitored the
effectiveness of the control environment through the
review of reports from Internal Audit, management and
the External Auditor and ensured the quality of the
Company’s financial reporting by reviewing the 2024
Half-Year Financial Statements and the year’s Annual
Report and Accounts.
One of the Committee’s key responsibilities is to
confirm to the Board that it is satisfied that the
Annual Report and Accounts are fair, balanced and
understandable taken as a whole, and to provide the
information necessary for Shareholders to assess the
Company’s position, performance, business model and
strategy. In doing so, the Committee considers whether
management’s disclosures reflect the supporting
detail, or challenge management to explain and justify
their interpretation and, if necessary, re-present the
information. The External Auditor supports this process
in the course of its statutory audit by auditing the
Group’s accounting records against agreed accounting
practices, relevant laws and regulation. The External
Auditor’s report can be found on pages 166 to 175.
Following this review and challenge process, the
Committee was pleased to advise the Board that the
2024 Annual Report and Accounts is fair, balanced and
understandable and that the Directors have provided
the necessary information for Shareholders to assess the
Group’s position, prospects, business model and strategy.
This review and challenge process is described in further
detail on pages 125 and 126.
The Committee also considered the viability and going
concern statements and their underlying assumptions.
Following consideration, the Committee agreed with
management’s proposal that the Company’s long-term
Viability statement should continue to cover a three-year
period (see page 37), that management had conducted
robust viability and going concern assessments and
recommended the approval of the Viability and Going
concern Statements to the Board. The Committee will
continue to monitor changes in regulation and focus
on the audit, assurance and risk processes within the
Principal Businesses. The Committee considered its
compliance with the Code and the FRC Guidance on
Audit Committees. The Committee believes that it has
addressed both their spirit and requirements.
The members of the Committee need to have the
right balance of skills and experience to deliver its
responsibilities. In accordance with our three-year Board
and Board Committee performance evaluation cycle,
during the year, the Board carried out an internally
facilitated evaluation of its performance and that of its
Committees. The Board is satisfied that the Committee
members possess relevant experience and appropriate
levels of independence and that its members have the
depth of financial and commercial experience across
various industries which is essential for the effective
working of the Committee. The review concluded that
the Committee continued to function well, that it was
well chaired and that it had the appropriate access to
senior management, the External and Internal Auditors
and it had the necessary company secretarial support.
The Committee has continued to monitor UK audit
and corporate governance reforms and consider the
implications of the revised UK Corporate Governance
Code (the Revised Code) which was published in
January 2024. The majority of the changes will apply to
the Company from the accounting period commencing
1 January 2025 (except for provision 29 in relation to risk
management and internal controls, which is effective
from 1 January 2026).
The Committee remains committed to continuing to
discharge its duties effectively and diligently in 2025.
John Waters
Chair of the Audit Committee
122
Annual Report and Accounts 2024
How the Committee operates
Membership
The Committee is a key element of the Company’s
governance framework. The Committee is chaired by
John Waters, who together with Philip Lee, Florence
Tondu-Mélique and Marcus Sperber, all of whom are
Independent Non-Executive Directors, were members of
the Committee throughout the year. Andi Karaboutis was
appointed to the Board and Committee as an additional
Independent Non-Executive Director on 14 March
2024. Members of the Committee are appointed by the
Board following recommendations by the Nomination
& Governance Committee and membership is reviewed
annually by the Nomination & Governance Committee
as part of the annual Board performance evaluation. As
at 31 December 2024 and up to the date of this report,
the Committee comprised entirely Independent Non-
Executive Directors. The members of the Committee
have been selected to provide the wide range of financial
and commercial experience needed to undertake its
duties and each member of the Audit Committee brings
an appropriate balance of financial and commercial
experience, combined with a sound understanding of
the Company’s business, and is therefore considered
by the Board to be competent in the Company’s sector.
The expertise and experience of the members of the
Audit Committee are summarised on pages 88 to 90.
The Board considers that each member of the
Committee is independent within the definition set
out in the Code and is capable of assessing the work
of management and the assurances provided by the
Internal and External Audit functions. The Board also
considers that John Waters, as Chair of the Committee,
possesses significant, recent and relevant financial
experience and that all Committee members have
relevant financial experience as required by the Code.
All members of the Committee receive an appropriate
induction, which includes an overview of the business,
its financial dynamics and risks, and meetings with
senior management. Committee members are expected
to have an understanding of the principles of, and
recent developments in, financial reporting, including
the applicable accounting standards and statements of
recommended practice, key aspects of the Company’s
policies, financing, internal control mechanisms, and
matters that require the use of judgement in the
presentation of accounts and key figures as well as the
role of Internal Audit and the External Auditor.
Objective
The objective of the Committee is the provision of
effective governance over the appropriateness of
financial reporting of the Group, including the adequacy
of related disclosures, the performance of both the
Internal Audit function and the External Auditor and
oversight of the Group’s systems of internal control,
business risks and related compliance activities.
Audit Committee Report
continued
§
Responsibility for assisting the Board in
fulfilling its financial and risk responsibilities
§
Advising the Board on various statements
made in the Annual Report including
those on viability, going concern, risks and
controls and in particular for ensuring that
the financial statements are fair, balanced
and understandable
§
Overseeing external financial reporting, internal
controls, risk management and reviews the
work of the Internal and External Auditors
§
Advising the Board on the appointment of
the External Auditor
§
Considering significant judgements,
assumptions and estimates made by
management in the financial statements.
The Committee is authorised to investigate any
matter within its Terms of Reference (a copy of
which can be found in the governance section of
the Company’s website at http://ir.savills.com and
which are reviewed at least annually or as required).
The Committee has access to the services of the
Group Legal Director & Company Secretary and,
where necessary, the authority to obtain external
legal or other independent professional advice to
fulfil its duties.
The Committee’s key role is to assist the Board
in discharging its duties and responsibilities
for financial reporting, internal control, the
effectiveness of the risk management process and
in making recommendations to the Board on the
appointment of the External Auditor.
The Committee is responsible for the scope and
results of the external audit work, the related
fees and cost effectiveness and for ensuring the
independence and objectivity of the External
Auditor including the approval of the level of
provision of non-audit services.
The remuneration of the members of the
Committee and the policy with regard to the
remuneration of the Non-Executive Directors are
set out on pages 129 to 160.
MAIN RESPONSIBILITIES
ROLE OF COMMITTEE
AUDIT, RISKS AND INTERNAL CONTROLS
continued
123
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Meetings held
The Committee meets at least five times per year and has an agenda planner linked to events in the Company’s
financial calendar and other matters that arise throughout the year, which fall for consideration by the Committee
under its remit. The Committee Chair agrees the meetings and agendas for each meeting.
There were five scheduled Committee meetings during the year (with two meetings focused on matters relating to the
half-year and full-year reporting). The Committee reports to the Board after each Committee meeting. Attendance at
meetings during 2024 is shown in the table below:
Committee member
Member since
Meetings
attended
John Waters*
January 2024
5/5
Andi Karaboutis**
March 2024
4/4
Philip Lee
January 2021
4/5
Marcus Sperber
December 2022
4/5
Florence Tondu-Mélique
October 2018
5/5
*
Member since 1 January 2024.
** Member since 14 March 2024.
How the Committee keeps up to date
The Committee is kept up to date with changes to Accounting Standards and relevant developments in financial
reporting, company law and the various regulatory frameworks through presentations from the Group’s External
Auditor, Group Chief Financial Officer, and Group Legal Director & Company Secretary. The Committee also receives
tailored briefings from management and the Group’s External Auditor from time to time. The Terms of Reference
of the Audit Committee include all the matters required under the Code and are reviewed at least annually by the
Committee. The Chair of the Committee meets informally and is in regular contact with key individuals involved with
the Company’s governance, including the Group Chief Financial Officer, Group Director of Risk & Assurance, the Head
of Internal Audit of Savills Investment Management (‘SIM’) and the Group Legal Director & Company Secretary, and
prior to each Committee meeting meets with each of them and senior members of the external audit team separately.
In addition to its members, a standing invitation has been extended by the Committee to the Chair and Group Chief
Executive Officer to attend the Committee’s meetings. The Group Chief Financial Officer, Group Financial Controller,
the Group Director of Risk & Assurance, Group Legal Director & Company Secretary and the External Auditor attend
each of the Committee’s meetings. Other senior executives from across the Group are invited periodically to present
reports to assist the Committee in discharging its duties.
At least once a year, the Committee meets with the External Auditor and the Group Director of Risk & Assurance
without management being present. The Chair of the Committee also normally attends the AGM to respond to
Shareholder questions on its activities.
Activities of the Committee during the year
The Committee has a substantial agenda of items formulated to discharge its responsibilities, while maintaining
sufficient time for discussion of ad hoc matters that arise throughout the year. The Committee relies on information
and support from management across the business, receiving reports and presentations from business management,
the Heads of Key Group functions, Internal Audit and the External Auditor, which it challenges as appropriate.
Following each meeting, the Chair of the Committee reports on the main discussion points and any actions arising
from these to the Board.
The Committee provides advice to the Board on the form and basis of conclusions underlying the Viability
statement as set out on page 37 and the going concern assessment.
124
Annual Report and Accounts 2024
AUDIT, RISKS AND INTERNAL CONTROLS
continued
Audit Committee Report
continued
What the Committee did during the financial year ended 31 December 2024:
Responsibilities
How the Committee discharged its responsibilities
Mar
June
Aug
Oct
Dec
Financial
Reporting
Reviewed and discussed the key accounting considerations and estimates
and judgements reflected in the Group’s results for the half year
■
Reviewed and discussed the key accounting considerations and
judgements reflected in the Group’s results
■
Reviewed the assessment supporting the going concern basis
of accounting
■
■
Reviewed the Viability statement and considered the processes
supporting the assessment of the longer-term solvency and liquidity
■
■
External
Audit
Agreed the External Audit strategy, scope and fee
■
■
Considered and, where appropriate, approved the instruction of the
Group’s External Auditor’s provision of non-audit services
■
■
Reviewed and considered the External Auditor’s Report, including
the External Auditor’s observations on the Group’s internal
control environment
■
Discussed the performance of Ernst & Young LLP (‘EY’) who were
the relevant External Auditor for the 2024 year-end audit, assessed
according to the Code
■
Met with the External Auditor without management present to discuss
their remit and any concerns
■
■
Discussed and agreed the External Auditor remuneration in respect
of audit services provided
■
Assessed the External Auditor’s independence, including non-
audit services
■
■
Internal
Audit
Considered and approved the remit of the Internal Audit function
and the Internal Audit plan
■
Received and considered reports from the Group’s Internal Audit
team covering various aspects of the Group’s operations, controls
and processes and monitored the progress made by management
in addressing recommendations arising out of these reports
■
■
Monitored and reviewed the effectiveness of the Group’s
Internal Audit function in the context of the Group’s overall risk
management arrangements
■
Met with the Group Director of Risk & Assurance privately to discuss
his remit and any concerns
■
Internal
Controls
and Risk
Management
Systems
Reviewed the effectiveness of the Group’s risk management system
and internal controls in place to manage the Group’s material existing
and emerging risks
■
Reviewed and considered the Group’s risk register
■
■
Reviewed the risk management environment for each of the Group’s
regional businesses by receiving presentations from the Chief
Operating/Financial Officers of the Principal Businesses
■
■
■
Reviewed the Committee’s own performance, composition and
Terms of Reference, and recommended any changes the Committee
considers necessary for Board approval
■
Reviewed the reports provided by the Group’s Legal Director &
Company Secretary on significant legal matters
■
■
125
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
During the year, in addition to its established review processes, the Committee considered and reviewed a number
of other areas. These included updates on the risk and internal control environments within the Group’s UK, North
American, Asia Pacific, Investment Management and CEME businesses. In addition, the Committee examined the
IT systems strategy including the Group’s approach to cyber security. The Committee specifically considered the
processes and assessment of the Group’s prospects and viability made by management to support the Viability
statement which can be found on page 37. The Committee’s review included consideration of the time period adopted,
the processes supporting the assessment of the Group’s longer-term solvency and liquidity which support the
Viability statement disclosure and assumptions.
The Committee considered and provided input into the determination of which of the Group’s principal risks might
have an impact on the Group’s longer-term solvency and liquidity. It also reviewed the results of management’s
scenario modelling, including severe but plausible downside modelling, and the stress testing of those financial models
supporting the viability analysis and challenged management on the appropriateness of the assumptions made.
Following discussions with management and the External Auditor, the Committee approved the disclosures of these
accounting policies and practices which are set out in Note 2 to the financial statements on page 183.
Financial reporting
The Committee’s primary responsibility in relation to the Group’s financial reporting is to review, with management
and the External Auditor, the appropriateness of the half-year and annual financial statements.
The Committee focuses on:
§
the quality and acceptability of accounting policies and practices;
§
material areas in which significant judgements have been applied or where significant issues have been discussed
with the External Auditor;
§
an assessment of whether the Annual Report & Accounts, taken as a whole, is fair, balanced and understandable;
§
the clarity of the disclosures and compliance with financial reporting standards and relevant financial and
governance reporting requirements;
§
providing advice to the Board on the form and basis underlying the long-term Viability statement; and
§
any correspondence from regulators in relation to the Group’s financial reporting.
126
Annual Report and Accounts 2024
AUDIT, RISKS AND INTERNAL CONTROLS
continued
Significant financial reporting estimates and judgements
As part of its monitoring of the integrity of the financial statements, the Committee considers the appropriateness
of the accounting policies proposed for adoption and whether management has made appropriate estimates and
judgements. To support its decision-making, the Committee seeks support and the views of the External Auditor in
these areas.
In accordance with Code provision 26, the following sets out the significant issues reviewed by the Committee
throughout the year, being those requiring management to exercise the highest level of judgement or estimation. The
Committee assesses these judgements to determine if they are reasonable and appropriate. This section outlines the
main areas of judgement that have been considered by the Committee and ensures that appropriate rigour has been
applied. The key reporting estimates and judgements considered by the Committee and discussed with the External
Auditor during the year were:
Matter considered
Action
Revenue recognition
The Committee considered the presumed risk of fraud and management override defined
by the International Accounting Standards.
The Committee discussed and actively challenged management’s conclusions in respect
of revenue recognition policies, satisfying itself that the approach applied to determine
revenue recognised in FY24 was appropriate, consistent across the Group and in line with
the Group’s accounting policies.
The Committee also received and discussed the External Auditor reports setting out its
work, testing and conclusions on this area. The Committee, having actively challenged
and considered both management’s judgements and the External Auditor’s conclusions,
agreed that there were no material issues in this area and that the approach taken
was appropriate.
Goodwill impairment
The Committee considered management’s approach in relation to the carrying value of
the Group’s businesses, including goodwill. The Committee reviewed and considered the
detailed analysis of the key inputs to forecast future cash flows and the process by which
they were drawn up. The Committee considered the appropriateness of the assumptions
used and reviewed the impact of sensitivity analysis.
The Committee also considered if there were any reasonably possible changes in
assumptions that would result in a material impairment and therefore require further
disclosure in the financial statements.
The Committee also considered a report from the External Auditor setting out its analysis
and conclusions in this area.
The Committee was satisfied with the assumptions and judgements applied by Management.
The Committee also considered if there were any reasonably possible changes in assumptions that would result in a
material impairment and therefore require further disclosure in the financial statements. These are set out in Note (15)
to the financial statements.
The Committee also considered a report from the External Auditor setting out its analysis and conclusions in this area.
Overall, the Committee was satisfied with the assumptions made and judgements applied by management.
External Auditor
The current External Auditor, EY was appointed following an audit tender process in 2019, and approval at the
Company’s 2021 AGM. EY’s reappointment was approved at the 2024 AGM. Christabel Cowling is the lead audit
partner and has held the role since 2022.
The Audit Committee advises the Board on the appointment of the External Auditor, negotiates and agrees its
remuneration for audit and non-audit work, reviews its effectiveness, independence and objectivity and discusses
the nature, scope and results of the audit with the External Auditor. The Committee holds private meetings with the
External Auditor at the March and August Committee meetings to provide additional opportunity for open dialogue
and feedback to/from the Committee and the External Auditor without management being present. The Chair of the
Committee also meets with the external lead audit partner outside the formal Committee process throughout the year.
Audit Committee Report
continued
127
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Effectiveness
The Committee assesses the effectiveness of the
External Auditor and the appropriateness of the audit
plan on an annual basis, in addition to the level of the
External Auditor’s fees. This covers a broad range of
matters including amongst other matters, the quality of
staff, its expertise, resources and the independence of
the audit. The Committee considered the External Audit
plan for the year and assessed how the External Auditor
had performed including consideration of the robustness
of their challenge and findings on areas which required
judgement, the strength and depth of the key partners
and feedback from the Group’s management. Feedback
from the review was provided to EY as part of the
annual planning meeting.
The Committee considers that the relationship with the
External Auditor is appropriate and is satisfied with EY’s
overall effectiveness.
Independence
An important aspect of managing the External Auditor
relationship, and of the annual effectiveness review,
is ensuring that there are adequate safeguards to
protect auditor objectivity and independence. The
Committee regards independence of the External
Auditor as crucial in safeguarding the integrity of the
audit process and takes responsibility for ensuring
the three-way relationship between the Committee,
the External Auditor and management remains
appropriate. In conducting its annual assessment, the
Committee reviews the External Auditor’s own policies
and procedures for safeguarding its objectivity and
independence. As one of the ways in which it seeks to
protect the independence and objectivity of the External
Auditor, the Committee has a policy governing the
engagement of the External Auditor to provide non-
audit services and its assessment of EY’s independence
is underpinned by this policy. In accordance with the
FRC’s Ethical Standard and the Group’s policy in place
to 31 December 2024, the Committee only approved
non-audit services which were permissible under the
FRC’s Ethical Standard.
Audit and non-audit fees
To further safeguard the independence of the Company’s
External Auditor and the integrity of the audit process,
recruitment of senior employees from the External
Auditor is not allowed for an appropriate period after
they cease to provide services to the Company.
2024
£m
2023
£m
2022
£m
Audit fees
4.4
4.2
4.1
Non audit fees
0.4
0.4
0.3
Details of the fees paid to the External Auditor for the
year can be found in Note 9.1 to the financial statements
on page 197. The Company maintains a policy governing
the provision of non-audit services to the Group.
During the financial year ended 31 December 2024
contracts for non-audit services in excess of £0.1m
required Committee approval and the Chair of the Audit
Committee approved new instructions for the delivery
of non-audit services below this level.
The Committee was satisfied that in view of their
knowledge and experience of the Company, that
when EY was used, it was best placed to provide
such non-audit services and that their objectivity and
independence had not been impaired by reason of this
further work. In line with the Company’s policy on the
provision of non-audit work, the Committee reviewed
the provision of non-audit work provided by the External
Auditor for the financial year ended 31 December 2024
on a case-by-case basis.
The Directors confirm that, insofar as they are each
aware, there is no relevant audit information of which EY
is unaware and each Director has taken the steps that
ought to have been taken as a Director to be aware of
any relevant audit information and to establish that EY
is aware of that information.
The Audit Committee’s role in ensuring
the financial statements taken as a whole
are fair, balanced and understandable
As part of the Committee’s assessment as to
whether the annual financial statements are ‘fair,
balanced and understandable’, taken as a whole
the Committee has oversight of and reviews the
effectiveness of key processes implemented
by management.
In addition to the above, the Committee also
undertakes a review to determine if the entire
financial statements are representative of the
Group’s performance in the year and challenges
management on the overall balance of the Report
and Accounts prior to recommending approval
of the financial statements to the Board. This
includes the financial reporting responsibilities of
the Directors under Section 172 of the Companies
Act 2006.
128
Annual Report and Accounts 2024
AUDIT, RISKS AND INTERNAL CONTROLS
continued
Internal control and risk management
Internal audit
The Committee has the primary responsibility for the
oversight of the Group’s system of internal control,
including the risk management framework, the
compliance framework, and the work of the Group’s
internal audit functions.
The internal audit function provides independent
assurance as to the adequacy and effectiveness of
the Company’s internal controls and risk management
systems. During 2024, Internal Audit services were
delivered by the Group’s Director of Risk and Assurance
with delivery support from two audit firms – RSM LLP
(‘RSM’) and Grant Thornton LLP. Savills IM has its own
Head of Internal Audit who has responsibility for Internal
Audit planning and delivery within Savills IM with support
from RSM, and who reports to the Group Risk Committee
and the Audit Committee on findings and actions
arising from internal audits within Savills IM. The Group
Risk Committee and Audit Committee approve the SIM
annual Internal Audit Plan.
The Board’s responsibility for internal control and risk is
detailed on page 96 and is incorporated into this report
by reference.
The Group’s Director of Risk and Assurance attended
all five scheduled Audit Committee meetings and
provided a range of presentations and papers to the
Committee, through which the Committee monitored
the effectiveness of all of the Group’s material internal
controls, including financial, operational and compliance
controls on behalf of the Board.
The Committee approved the internal audit plan and
the SIM Internal Audit plan at the December Committee
meeting and received progress against those plans
during the year, while the effectiveness, workload
of the internal audit functions and the adequacy of
available resources were monitored throughout the year.
The Committee seeks to ensure that Internal Audit is
appropriately resourced with the skills and experience
relevant to the operations of the Group and that
information is made available to it to enable it to fulfil
its mandate to the appropriate professional standards.
The Committee reviews Internal Audit reports from
both Group and SIM on a regular basis and monitors
the status of all Internal Audit recommendations and
management’s responsiveness to their implementation,
and challenges both Internal Audit and management
where appropriate to provide assurance that the control
environment is robust and effective.
In assessing the performance of Internal Audit, the
Committee considered and monitored its effectiveness in
the context of the Company’s risk management system
and took into account management’s assessment of and
responsiveness to the Internal Auditor’s findings and
recommendations and reports from the External Auditor
on issues identified during the course of their work.
Assessment of Group’s system of internal
control, including the risk management
framework
The Committee, on behalf of the Board, undertook a
robust review of the effectiveness of the system of risk
management and internal control.
In performing its review of effectiveness, the
Committee reviewed and assessed the following reports
and activities:
§
Internal Audit reports on the review of the controls
across the Group and its monitoring of management
actions arising from these reviews;
§
management’s own assessment of risk and the
performance of the system of risk management and
internal control during 2024;
§
reports from the Group Director of Risk & Assurance
including reports on Group-wide risk assessment
activity and annual self-assessment findings;
§
reports from the SIM Head of Risk & Compliance and
the SIM Head of Internal Audit; and
§
reports from the External Auditor on any issues
identified during the course of their work.
The Committee and the Board considered that the
information received was sufficient to enable a review
of the effectiveness of the Group’s internal controls
in accordance with the FRC’s Guidance on Risk
Management, Internal Control and Related Financial
and Business Reporting.
Audit Committee Report
continued
129
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
DIRECTORS’ REMUNERATION REPORT
Annual statement
Richard
Orders
Chair of the
Remuneration
Committee
COMMITTEE MEMBERS
Richard Orders
Stacey Cartwright
Dana Roffman
Governance
This Report has been prepared
on behalf of the Board by the
Remuneration Committee (the
‘Committee’) in accordance
with the requirements of the
Companies Act 2006 and the Large
and Medium-sized Companies and
Groups (Accounts and Reports)
(Amendment) Regulations 2008
(as amended) (‘Regulations’) and
the auditable disclosures referred
to in the External Auditor’s Report
on pages 168 to 177 as specified
by the UK Listing Authority and
the Regulations.
Dear Shareholder
On behalf of the Board, I am pleased to introduce our
2024 Directors’ Remuneration Report (the ‘Report’).
Included within this Report are details on how we
implemented our existing Directors’ Remuneration Policy
in 2024 and the new Directors’ Remuneration Policy (the
‘Policy’) which we will be presenting to Shareholders for
approval at the 2025 AGM on 14 May 2025.
Our remuneration philosophy
As set out in previous reports, our long-standing focus
and business philosophy is founded on the premise that
staff in our sector are motivated through performance-
based incentives (variable remuneration) consistent
with our partnership culture. We firmly believe that this
approach best aligns Shareholders’ and management’s
interests and incentivises superior performance and
the creation of long-term Shareholder value. This
approach also ensures that our reward arrangements
are consistent with, and sensitive to, the cyclical nature
of real estate markets.
Both our current and proposed policies are designed
to deliver these objectives and to provide the reward
potential necessary for the Company to attract, retain
and motivate the high-calibre individuals on whom its
continued growth and development depend.
130
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Reflecting this philosophy, the salaries for the Executive
Directors, Group Executive Board members and senior
fee-earners are set significantly below market medians
for similar businesses, with a greater emphasis on the
performance-related elements of profit share and/or,
outside the UK, commission in the total reward package.
The Committee is mindful of its responsibility to reward
appropriately, but not excessively. As such, it places
great emphasis on the calibration of Executive Director
remuneration and structure against internal relativities
and wider market conditions, while also rigorously
assessing external competitive positioning in setting
remuneration. Finally, it determines targets to ensure that
reward properly reflects performance, that it supports
the delivery of our strategic and operational objectives
and that it is fair to management and Shareholders alike.
Overall, we continue to target staff employment costs
over the cycle to be in the range of 65%–70% of revenues
which the Committee regards as the key metric from a
Shareholder’s perspective.
The Committee is comfortable that our remuneration
philosophy remains appropriate and continues to align to
the best interests of our stakeholders, demonstrated by
the high levels of Shareholder support for our Directors’
Remuneration Policy at our 2022 AGM.
2024 performance and
remuneration outcomes
Over the course of 2024, there was progressive recovery
in a number of markets globally, albeit with some
significant exceptions. The trajectory of the recovery was
however somewhat shallower than anticipated at the start
of the year; for investors and occupiers this was a function
of macro-economic and geo-political events including the
impact of elections in key markets, significant volatility
in bond yields and, latterly the interest rate expectation
being ‘higher for longer’. Nevertheless, improved
transaction markets, and the benefits of prior period
restructuring, drove the 38% increase in Group underlying
profit to £130.4m (2023: £94.8m).
Savills improved performance in 2024 reflected this
growing recovery in some markets, as well as the
ongoing resilience of and robust earnings provided by
Savills less transactional businesses, with the Group’s
Consultancy and Property Management businesses
again performing well, increasing revenue by 8% and
5% respectively year-on-year.
The performance of Savills EMEA business improved
substantially year-on-year. The largest component, the
UK, performed strongly supported by the resilience
of the prime residential business, its market share
in commercial transactions and underpinned by the
breadth and depth of its Less Transactional service lines.
In Continental Europe and the Middle East improved
trading results in the majority of countries were helped
by further restructuring in France and Germany, both of
which markets continued to be challenging.
Annual statement
continued
-9%
Underlying Profit
+515%
Dividend Payments to Shareholders**
+12%
Executive Director Remuneration***
+5%
Total Shareholder Return
2020–2024 Overview*
*
The KPIs are calculated as the change in the KPI over the period
31 December 2019 – 31 December 2024. The COVID-19 pandemic resulted
in greater market volatility during the period from 2020 to 2024 (i.e. the
pandemic impacted both the volume and timing of transactions across
this period).
**
The dividend cost for 2024 comprises the cost of the final dividend
recommended by the Board (amounting to £19.8m) alongside the
supplemental interim dividend (amounting to £11.7m), payment of which is
subject to Shareholder approval at the Company’s Annual General Meeting
(‘AGM’) scheduled to be held on 14 May 2025 and payable to Shareholders
on the Register of Members as at 11 April 2025 and the interim dividend
(£9.7m) paid on 30 September 2024.
***
Executive Director remuneration reflects the change in the total (‘Single
Figure’) remuneration paid to the Group Chief Executive Officer and
Group Chief Financial Officer role holders over the period 1 January 2020 –
31 December 2024.
131
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Savills also delivered a significant year-on-year
improvement in performance in North America, despite
a number of large transactions falling into Q1 2025.
In Asia Pacific, whilst activity in Greater China
remained depressed during the year, Savills continued
to benefit from the underpinning provided by the
Group’s substantial Property and Facilities Management
business in that region. Elsewhere, Japan and Vietnam
remained positive through the year and there were
signs of recovery through the last quarter in Australia
and Singapore.
Savills Investment Management traded in line with our
expectations given the valuation adjustments during the
period, with the raising and deployment of capital also
inevitably more challenging during a period of interest
rate and price volatility.
Overall the Group continued to maintain its strong
balance sheet with net cash (cash and cash equivalents
net of borrowings and overdrafts in the notional pooling
arrangements) of £176.3m at year-end (2023: £157.1m).
Annual performance-related profit share
Whilst narrower than those set in 2023, considering
ongoing market uncertainty, the Committee set a broad
range of financial targets within the annual performance-
related profit share to ensure that there was an
appropriate balance between stretching performance
targets and potential reward outcomes.
Profit performance was £130.4m above the target level
of £127.6m. This represented 66% of the maximum under
the profit element.
With regard to performance against non-financial
targets, we were delighted to have our Net Zero plans
validated by SBTi in February 2024. There remains much
to do to achieve our Net Zero goals, but achieving this
validation is a key step. We also made strong progress in
implementing our leadership succession plans across the
world, with in particular a new board formed to lead our
EMEA business and planned changes completed across
the leadership teams in all of our Principal Businesses.
Our focus on ensuring that Savills was best positioned to
service clients in the face of continued macro-economic
uncertainty and geo-political risk was maintained with
the restructuring programme that commenced in 2023
extended through 2024 for certain markets. For some
of these markets, recovery assumptions were revised
and further restructuring was required to ensure that
the Group’s businesses were appropriately positioned
going into 2025. Complementing this, we continued
to strengthen our key service line offerings with, in
particular, the continued expansion of our Global Prime
Residential services, with the acquisition of lettings
management businesses in the UK (Pastor Real Estate
Limited) and Switzerland (Verbier Hospitality SA) and
increasing our shareholding in our prime residential
agency business in the French Riviera (Riviera
Estates SAS) to 75%. We also invested significantly
in prime residential in the United Arab Emirates and
further invested in residential sales in Sydney and
Melbourne, Australia.
We also continued to develop our Global Occupier
Service offering, in particular through the acquisition
of Situu Limited, a market leading flexible office advisory
business in the UK to complement our WorkThere
flexible occupier service and increased the scope
of our project management consultancy offering in
Asia through the acquisition of PMCC Actus Sdn Bhd
in Malaysia.
Our EMEA Property Management business was
further strengthened as we took on the UK property
management business of Montagu Evans.
In parallel, we continued to develop our digitally-enabled
businesses, with in particular our market leading UK
auction business continuing to take market share in both
the UK commercial and residential auction markets,
selling almost £400m of property over the period, up
46% year-on-year. Finally, we continued to investigate,
experiment and adopt new and emerging technologies,
including AI, through our innovation and data teams
globally. This strong strategic progress, many aspects
of which were included in the non-financial targets set
at the start of the year, resulted in a total of 90% of
the maximum being earned under this element of the
bonus (2023: 80%).
Overall, the formulaic outcome was 72% of the
maximum. When considering the appropriateness of
the formulaic outcome, the wider factors considered
by the Committee included the following performance
highlights from 2024:
§
Revenue of £2.4bn achieved (2023: £2.2bn)
§
Group underlying profit at £130.4m (2023: £94.8m)
§
Revenue in the Group’s Less Transactional businesses
of Consultancy and Property Management grew by
8% and 5% respectively
§
Strong liquidity position maintained with net cash
(cash and cash equivalents net of borrowings and
overdrafts in the notional pooling arrangements) of
£176.3m at year-end (2023: £157.1m)
§
The wider stakeholder experience over the year which
included delivering a 9% total Shareholder return
(inclusive of a 7% increase in share price).
In light of the above, the Committee considered the
outcomes for the Executive Directors to appropriately
reflect the financial and non-financial performance of the
business and the experience of stakeholders. Therefore,
no adjustments were made.
132
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Full details of the annual performance-related profit
share awards approved by the Committee for the
Executive Directors are included along with the other
elements of remuneration in the total remuneration table
on page 149 of this Report.
Performance Share Plan
Whilst the Group delivered strong financial performance
over the performance period of the 2022 PSP, based on
a base year of 2021 where record results were delivered
and challenging market conditions, the outcomes were
below threshold. As a result there is no vesting under the
2022 PSP.
Further details regarding performance targets are set
out on page 142 of this Report.
Overall, the Committee is satisfied the Policy operated
as intended for 2024 and that outcomes reflect the
financial and non-financial performance delivered during
the period.
Remuneration Policy review
As outlined earlier in this report, our current Policy was
designed to support our tried and tested remuneration
philosophy which operates throughout the Group. For
Executive Directors, the Group’s partnership culture and
operating model means that we operate modest fixed
pay versus FTSE 250 benchmarks counterbalanced by
higher performance linked remuneration potential.
The model ensures we effectively manage our fixed costs
in cyclical market downturns and reward in line with the
Shareholder experience in strong market conditions. It
also ensures that our employees share proportionately in
both challenging and strong market conditions, aligning
with our partnership culture. Critically, it also aligns with
the Shareholder experience under differing financial
performance outcomes.
Since its inception in 2008, this approach has been
effective in ensuring there has been a direct relationship
between performance and reward and we have aligned
reward outcomes with the Shareholder experience. This
is demonstrated by the strong Shareholder support
received for the current Policy at the 2022 AGM (85%),
re-emphasised by the more than 99% support for Policy
implementation at the 2024 AGM.
Following a detailed review of the remuneration
philosophy and the current Policy, the Committee
remains committed to the current construct. As a result,
the current model is to be retained, save for updating
the current annual performance-related profit share
maximums which have been fixed for the most recent
three-year Policy period (i.e. their value has reduced
in real terms over the Policy period) and so will be
increased with reference to CPI over the period and
providing more flexibility on the base salary for any
future Executive Director.
The main changes are as follows:
I.
Increase to the 2025 annual performance-related
profit share plan limits
– as part of the previous Policy
review, the profit share limits for the Group Chief
Executive (“Group CEO”) and Group Chief Financial
Officer (“Group CFO”) were set at £3.25m and £2.5m
respectively for the term of the Policy. Recognising
that the annual performance-related profit share forms
the core part of the executive remuneration structure,
ensuring that this element of pay retains its value in
real terms given our overall market positioning is vitally
important. The limits are proposed to be increased
to reflect in CPI over the period from 2022 to 2024
to £3.8m and £2.9m for, respectively, the Group CEO
and Group CFO.
II.
Index the future (from 2026) profit share limits by up
to CPI each year
– given the higher limits implemented
as part of the 2022 Policy were effectively a rebasing
from the limits set in 2008 as a result of Savills growth
relative to market since 2008 and the need to provide
a competitive remuneration offering in the context
of our international peer set (see the 2021 Directors’
Remuneration Report and below), annual indexing
of the limit was not included as a feature from the
2022 Policy. However, the Committee now considers
it appropriate to maintain the value of our incentives
in real terms to avoid a return to the pay compression
experienced before the introduction of the 2022
Policy. As a result, we are seeking to build annual
increases of up to the rate of CPI into the 2025 Policy
which will enable the profit share limits to be indexed
each year within the Policy period.
III.
Increase in base salary limit
– whilst noting our
remuneration philosophy is to have lower fixed
remuneration and higher variable opportunity, the
limit on base salaries within the Policy of £500,000
p.a. is proposed to be increased to £600,000. While
there is no intention to materially increase our
incumbent Executive Directors’ salaries, the proposed
change will give the Committee greater flexibility in
the context of succession planning. The change will
also increase the maximum monetary value that a
Performance Share Award may be granted at with the
limit set at 200% of salary (i.e. the maximum value
of a Performance Share award will increase from
£1m to £1.2m were an Executive Director to receive
a £600,000 p.a. base salary). Should a materially
higher base salary be set, the Committee would
review the overall operation of the current model to
ensure that the overall package remained consistent
with the partnership and pay for performance culture
operated at Savills.
Annual statement
continued
133
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Shareholder engagement on the 2025 Remuneration Policy
The Committee engaged with our major Shareholders and the leading advisory agencies to explain and provide
context for the above proposed changes to policy and implementation for 2025. The consultation process involved
a letter being sent to our 15 largest institutional Shareholders who collectively own c.53% of the Company’s shares,
with the offer of meetings as necessary. The Committee received feedback from institutional investors representing
27.1% of the Shareholder register with the vast majority of responding investors understanding the rationale behind the
proposed changes and, as a result, supportive of the proposals.
With regards to our engagement with the leading shareholder advisory bodies, engagement took the form of
providing additional context in writing, as well as meetings where requested. During our discussions, we were asked to
provide additional context in the Directors’ Remuneration Report which has been set out below.
Pay for Performance
§
The current pay model is highly performance linked. With fixed pay being set at a substantial discount to FTSE 250
market practice (see below), and the annual performance-related profit share and PSP being subject to demanding
targets set with reference to internal plans and market expectations, the partnership pay model provides a high
degree of correlation between performance and reward (see charts below).
§
Despite significantly outperforming the FTSE 250 over the past ten years and growing in size and complexity
against the market with an increasingly diversified consulting, property management and transactional services
offering (see the Strategic Report), the performance-related profit share has only paid out at maximum three times
in the past ten years and the PSP twice. The highest payout under the profit share in the current policy period has
been 72% of maximum. This demonstrates the Committee’s robust approach to target setting and the alignment
achieved between pay and performance.
Total Shareholder Return (‘TSR’)
Comparison of TSR Against CEO Single Figure remuneration
0.5
1
1.5
2
2.5
3
3.5
4
5
300%
0%
50%
100%
150%
200%
250%
4.5
CEO Single Figure (£m)
Total Shareholder Return
0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Year
CEO Single Figure
TSR
50
100
150
200
250
300
0
Dec
14
Dec
15
Dec
16
Dec
17
Dec
18
Dec
19
Dec
20
Dec
21
Dec
22
Dec
23
Dec
24
Savills
FTSE 250 (excluding investment trusts)
FTSE 350 Super Sector Real Estate
134
Annual Report and Accounts 2024
Benchmarking: Internal relativities and use of
US Comparator Companies
The Committee reviewed a number of data points as
part of determining the changes proposed to the annual
performance-related profit share:
§
FTSE 250 market data: Savills pays well below the
typical FTSE 250 market rate of base salary (over a
50% discount relative to the market median of the
FTSE 250 notwithstanding Savills ranks well within the
top-half of the FTSE 250). However, consistent with
our performance-led partnership culture, the majority
of the package is ‘at risk’, with the below market base
salary offset with higher variable pay that moves the
total target package to between median and upper
quartile versus the FTSE 250, with the ability to earn
top quartile rewards for exceptional performance.
§
Bespoke peer set: as an international business (2024
revenues: c.42% UK, 29% Asia Pacific, 16% Continental
Europe and the Middle East and 13% North America),
Savills competitive market is dominated by North
American peers (including CBRE, JLL, Cushman &
Wakefield, Colliers and Newmark). Savills competes
for talent at all levels against these global players and
other regional businesses, especially at the executive
levels below the PLC Board. Paying competitively
below the PLC Board against these comparators
means that the Executive Directors are not typically
the highest paid executives within Savills. When the
Committee benchmarks the Executive Directors
against these peers, it does not consider the CEOs or
CFOs of its largest peers, noting these are significantly
larger businesses.
§
To provide an internal and external context on market
positioning for the Executive Directors, on average
over the past three years, the Group CEO has been
paid at circa 75% of the size adjusted US comparator
set and at 85% of the average of Savills five Principal
Business Heads.
§
While the Committee is not seeking to close the above
differentials, given the value of the performance-
related profit share has reduced in real terms having
been fixed for the past three years, it is important that
the maximum opportunity is increased to avoid the
unintended consequence of pay compression within
Savills and for overall market positioning to become
unsustainable which is a risk without addressing the
cap that applies to the Executive Directors.
The level of indexing of the performance-related
profit share and workforce alignment
The level of indexing proposed to the performance-
related profit share caps was set at CPI (i.e. a 17.5%
increase over the Period) since this will ensure that
the competitive positioning of the Executive Director
packages set in 2022 is maintained from 2025 in ‘real
terms’ (i.e. adjusted for the erosion caused by inflation).
This increase will restore the caps to the same real
value to those set in 2022. For completeness, we note
that broad-based salary increases within Savills (at
budgeted levels within the UK) have been at 18% across
this period and limited to 5% for Executive Directors.
Given the conservative approach to salary increases at
Executive Director level with salaries used as the basis
of determining PSP awards (and bonuses outside of
Savills), the Committee was comfortable with the use
of CPI to increase the performance-profit share cap so
that the overall package remains internally and externally
competitive. In reaching this conclusion, the Committee
also noted the fact that Savills has paid its Executive
Directors circa 15% to 20% below both the average
payout of Savills five Principal Business Heads and the
average of its peer group set over the past three years.
Therefore, while not seeking to close these gaps in total
remuneration, the increase moves some way to ensuring
a competitive opportunity for the Executive Directors.
The ongoing, post-2025, indexing of up to CPI for the
performance-related profit share will mitigate the need
for a future increase in maximum performance-related
profit share caps of the type proposed for 2025.
Degree of stretch in the performance-related
profit share targets
The Committee has a history of setting tough
targets (e.g. since the 2022 increase to the maximum
performance-related profit share caps the maximum
bonus has been at 72% of the maximum and only three
times in the past ten years has the bonus paid out
at maximum).
As detailed above, we have sought to provide the
complete rational for the changes proposed and were
grateful for the constructive feedback and engagement
with our leading Shareholders during this process.
In light of the commercial rationale for the proposals, as
set out above, and the feedback from our Shareholders
and the leading proxy agencies, the Committee is
comfortable that the proposals presented will support
Savills in its ability to retain and motivate its highly
regarded executive team, whilst continuing to manage
internal compression challenges and provide flexibility
for succession planning purposes.
DIRECTORS’ REMUNERATION REPORT
continued
Annual statement
continued
135
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Workforce and governance developments
During the year, the Committee continued to receive
updates on workforce remuneration, mindful that
whilst inflation has reduced during 2024, employees
in some markets continue to face cost-of-living
pressures. Sensitive to this we continued to expand our
employee benefit and financial wellbeing programmes
to support in particular, lower paid employees. In the
UK we partnered with Royal London and SPF Private
Clients to create a year-long programme of financial
wellbeing communications which were bespoke to
specific employee demographics and partnered with
Aviva to make the Digicare+Workplace App providing
online GP access, counselling, annual health checks,
nutritional support and active and cancer care discounts
available to all UK employees. As we moved Savills
Management Resources to the Royal London pension
scheme, we were able to point them to the benefits and
wellbeing sections for Royal London online where one
facility enables employees to check for eligibility for
any state benefits.
With regard to engagement with employees on pay,
this continues to be facilitated through the Savills
workforce engagement programme, including our Speak-
up facility, which allows the Non-Executive Directors
to directly receive feedback across a wide spectrum
of topics, including how executive remuneration aligns
with wider employee remuneration and supports the
Group’s strategy.
2025 Remuneration
For 2025, the salaries of both Executive Directors will
remain unchanged, at respectively £311,000 p.a. for
the Group CEO and £238,000 p.a. for the Group CFO,
notwithstanding a 3.7% increase across the wider
UK workforce.
The UK workforce aligned pension contributions of 8%
for both Executive Directors will also remain unchanged.
Subject to the approval of the Policy, for 2025 the
maximum opportunity under the annual performance-
related profit share will be £3.8m and £2.9m for the
Group Chief Executive Officer and the Group Chief
Financial Officer respectively. Awards will continue to be
based on Group underlying profit performance (75%)
and on the achievement of pre-set personal strategic
and operational objectives (25%). The underlying profit
performance targets are commercially sensitive and
will therefore be fully disclosed retrospectively in next
year’s report.
The 2025 PSP will remain consistent with the approach
taken in previous years. This will include an award of
performance shares with a value of 200% of base salary
for the Group CEO and the Group CFO. The performance
metrics will also remain unchanged from the 2024 award
being EPS growth, relative total Shareholder return and
ROCE with an equal weighting applying to each metric.
In line with Policy, any vested shares under the PSP
will be subject to a further two-year holding period.
Further details regarding the performance measures and
associated targets can be found on page 140.
Conclusion
I would like to thank those Shareholders who provided
feedback on our Policy proposals during the year, and I
hope you will support both remuneration resolutions at
our AGM on 14 May 2025. I welcome any comments or
feedback you may have on the Committee’s activities in
2024, or our proposals for 2025.
Richard Orders
Chair of the Remuneration Committee
136
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
This part of the Report sets out the Directors’
Remuneration Policy (the ‘Policy’) which will be put
forward for Shareholder approval at the 2025 AGM in
accordance with section 439A of the Companies Act
2006. The Policy will apply from the 2025 AGM, subject
to Shareholder approval.
The Group’s remuneration arrangements for the
Executive Directors, Group Executive Board members
and senior fee-earners are structured to provide a
competitive mix of variable performance-related (i.e.
annual performance profit share and longer-term
incentives) and fixed remuneration (principally base
salary) to reflect individual and corporate performance.
The objective is to set targets which provide an
appropriate balance between being achievable
and stretching.
In determining the remuneration of the Executive
Directors and reviewing that of the Group Executive
Board members, the Committee reviews the role and
responsibilities of the individual, their performance,
the arrangements applying across the wider workforce
and internal pay relativities. It also considers sector and
broader market practice in the context of the prevailing
economic conditions and corporate performance on
environmental, social and governance issues.
Remuneration Policy
Provision 40 of the UK Corporate
Governance Code
The Committee has ensured that the Policy review and
its operation are consistent with the six factors set out in
Provision 40 of the UK Corporate Governance Code:
§
Clarity –
Our Directors’ Remuneration Policy is well
understood by our senior executive team and has
been clearly articulated to our Shareholders and
representative bodies (both on an ongoing basis and
during consultation when changes are being made).
§
Simplicity –
The Committee is mindful of the need
to avoid overly complex remuneration structures
which can be misunderstood and deliver unintended
outcomes. Therefore, a key objective of the Committee
is to ensure that our Directors’ Remuneration Policy
and practices are straightforward to communicate
and operate.
§
Risk –
Our Directors’ remuneration Policy has been
designed to ensure that inappropriate risk-taking
is discouraged and will not be rewarded via (i) the
balanced use of both annual incentives and long-
term incentives which employ a blend of financial,
non-financial and Shareholder return targets, (ii) the
significant role played by shares in our incentive plans
including the deferral under the annual performance-
related profit share (together with in-employment
and post-cessation shareholding guidelines) and
(iii) malus/clawback provisions within all our
incentive plans.
§
Predictability –
Our incentive plans are subject to
individual caps, with our share plans also subject to
market standard dilution limits. The use of shares
within our incentive plans means that actual pay
outcomes are highly aligned to the experience of
our Shareholders.
§
Proportionality –
There is a clear link between
individual awards, delivery of strategy and our long-
term performance. In addition, the significant role
played by incentive/‘at-risk’ pay, together with the
structure of the Executive Directors’ service contracts,
ensures that poor performance is not rewarded.
§
Alignment to culture –
Our executive pay policies are
fully aligned to the Company’s culture through the use
of metrics in both the Annual performance-related
profit share and PSP that measure how we perform
against key aspects of our strategy, which has the
objective of delivering sustainable growth in profit and
ROCE. A similar structure operates across the Group.
137
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Overview of Policy changes
A summary of the proposed Policy for Executive Directors, the proposed amendments to the current Policy and how
it will be applied for 2025 is set out below.
Element
Summary of approach
Change from previous Policy
Application of Policy for 2025
Base salary
Base salaries are set significantly
below market median levels, in
line with the Group’s philosophy
to place greater emphasis
on variable, performance-
related remuneration.
Base salary limit to
be increased to £600,000
p.a. (from £500,000 p.a.).
The Committee has determined that there will
be no increase in base salaries in 2025. Salaries
will therefore be as follows:
§
Group Chief Executive Officer: £311,000 p.a.
§
Group Chief Financial Officer: £238,000 p.a.
Pension
Pension benefits are provided
through a Group personal pension
plan, as a non-pensionable salary
supplement or as a contribution to
a personal pension arrangement.
Pension contributions are in line
with the UK workforce standard
contribution rate of 8% of salary.
No change.
Pension contributions/salary supplements to
be aligned with the UK workforce contribution
rate of 8% of salary.
Benefits
Benefits include:
§
Medical insurance benefits;
§
Annual car/car allowance
(currently up to
£9,000 p.a.);
§
Permanent health insurance;
§
Life insurance; and
§
Relocation expenses.
No change.
Benefits in line with Policy.
Annual
performance-
related profit
share
Reflects the Group’s annual
profit performance and
personal performance against
pre-set objectives and overall
contribution. In line with the
Group’s philosophy that there
is greater emphasis (than is the
norm for listed companies) on
variable performance-related pay.
Consequently, 50% of any award
payable above an amount equal
to base salary is deferred into
shares for three years. Malus and
clawback provisions apply.
Maximum potential profit
share limits for the CEO
and CFO for 2025 to be
increased from the 2022
Policy maximum levels
based on CPI over the
three year period ending
in December 2024.
Maximum potential profit
share limits to be eligible
for annual increase from
2026 at a rate of up to
CPI over the previous
12 months.
Profit share limits for 2025 will be:
§
CEO: £3.8m (from £3.25m); and
§
CFO: £2.9m (from £2.5m).
Performance
Share Plan
Awards of shares are made
subject to a three-year
performance period. Any awards
which satisfy the three-year
performance conditions attaching
to them will then be subject to an
additional two-year holding period
before vesting. The maximum
award potential remains at 200%
of base salary, subject to an
overall annual maximum of shares
with a value of £1m on award per
participant. Malus and clawback
provisions apply.
No change to the annual
percentage of salary award
limit at 200% of salary.
Based on a maximum
salary of £600,000 p.a.
the maximum award value
will be £1.2m (from £1m).
The awards for 2025 will be up to 200% of
base salary.
For 2025 Performance Share Plan awards
(three year performance period ending
31 December 2027):
§
one-third of the award will vest subject to
Earnings Per Share performance;
§
one-third will vest subject to relative TSR
performance against the FTSE Mid 250
Index (excluding investment trusts); and
§
one-third will vest subject to ROCE
performance.
Share
ownership
guidelines
Achieved through share purchase
and/or retention of any after-tax
shares which vest pursuant to
the Group’s share plans until the
guideline is met.
No change.
700% of base salary for the Group Chief
Executive Officer and Group Chief Financial
Officer while in post.
250% of salary applying for two years
post-cessation.
138
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Non-Executive Director fees are set consistent with the median for the FTSE 250 and are subject to annual review
with the established approach being to limit any increases to the level awarded to the wider UK workforce and
flexibility retained to make more significant adjustments based on any material increases to the size of the Company
and/or time commitment of the role. No increases applied in 2024. Additional fees, again, are set consistent with the
median for the FTSE 250 and are payable to the Senior Independent Director and Committee Chairs to recognise their
additional responsibilities. The Chair’s fee, again, is set at levels consistent with the median for the FTSE 250 and is
subject to annual review, generally capped at CPI. No increase applied in 2024.
Directors’ Remuneration Policy table
The following table sets out the Policy for each component of Executive Directors’ remuneration.
Purpose and
link to strategy
Operation
Potential
Performance measures
Base salary
A core
component
of the total
reward package,
which overall
is designed to
attract, motivate
and retain
individuals of
the highest
quality.
The Committee normally
considers base salary levels
annually taking into consideration:
§
the Group’s philosophy to
place greater emphasis on
variable performance-related
remuneration;
§
the individual’s experience
(i.e. salaries may be set at
a discount to Savills normal
practice on appointment
and increased over two to
three years);
§
the size and scope of the role;
§
the general level of salary
reviews across the Group; and
§
appropriate external market
competitive data.
Set significantly below market
median levels with greater
emphasis on the performance-
related elements of reward.
The Committee retains the
flexibility to award base salary
increases taking into consideration
the factors considered as part of
the annual review. Increases are
normally limited to the typical
rate of increase awarded to the
wider UK workforce in percentage
of salary terms.
The annual base salary for any
Executive Director shall not
exceed £600,000.
n/a
Pension
Provides
appropriate
retirement
benefits.
Rewards
sustained
contribution.
Defined contribution pension
arrangements are provided.
HMRC approved salary and
profit share sacrifice arrangements
are in place. Pension benefits
are provided either through a
Group personal pension plan,
as a non-pensionable salary
supplement, contribution to a
personal pension arrangement,
or equivalent arrangement for
overseas jurisdictions.
Pension contributions/salary
supplements are aligned with
the UK workforce contribution
rate of 8% of salary for both
Executive Directors.
n/a
Remuneration Policy
continued
139
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Purpose and
link to strategy
Operation
Potential
Performance measures
Benefits
To provide
market
competitive
benefits.
Benefits currently comprise:
§
Medical insurance benefits
§
Car/car allowance
§
Permanent Health Insurance
§
Life insurance.
Other benefits may be
provided if the Committee
considers it appropriate.
Where an Executive Director
is located in a different
international jurisdiction,
benefits may reflect market
practice in that jurisdiction.
In the event that an existing
Executive Director or new
Executive Director is required
by the Group to relocate, other
benefits may be provided
including (but not limited to) a
relocation allowance, housing
allowance and tax equalisation.
Car allowance currently up to a
maximum of £9,000 p.a.
There is no overall maximum as
the cost of insurance benefits
depends on the individual’s
circumstances, but the provision
of taxable benefits will normally
operate within an annual limit of
30% of an Executive Director’s
annual base salary.
The Committee will monitor the
costs in practice and ensure that
the overall costs do not increase
by more than the Committee
considers to be reasonable in all
the circumstances.
Relocation expenses may be
provided for a limited period and
are subject to a maximum limit of
£200,000 (£300,000 in the case
of an international relocation)
plus, if relevant, the cost of
tax equalisation.
n/a
Annual performance-related profit share
To encourage
the achievement
of challenging
financial,
strategic and/
or operational
targets.
Further
alignment with
Shareholders’
interests
through deferral
of a significant
amount of any
award into
shares.
Annual profit share awards
reflect the Group’s annual profit
performance and personal
performance and contribution.
Awards are delivered part in cash
and part in shares subject to a
minimum cash threshold of 100%
of annual salary. Thereafter, 50%
of any award is delivered in shares.
The share element of any award
is normally deferred for a period
of three years.
The number of shares in that
part of the award deferred for
three years is increased at the
time of vesting to reflect the
value of dividends declared over
the deferral period. Alternatively,
the cash equivalent is paid.
The Committee may exercise
its judgement to adjust (on
a downwards only basis)
individual annual bonus payouts
should they not reflect overall
business performance or
individual contribution.
Malus/clawback provisions apply,
allowing for the reduction of
awards as explained in the notes
to this table.
In line with the Group’s
philosophy, there is greater
emphasis on variable
performance-related pay, while
base salaries are set significantly
below market median levels.
The maximum potential annual
profit share awards for 2025 are:
§
£3.8m for the Group Chief
Executive Officer
§
£2.9m for the Group Chief
Financial Officer.
For a new Executive Director, the
Committee would determine the
appropriate normal maximum
taking into account the role
and responsibility, subject to a
maximum of £3.8m p.a.
The maximum potential can
be increased annually by the
Committee at up to CPI.
For 2025, the weighting will be 75%
in relation to the Group’s annual profit
performance, defined as underlying
profit before tax performance, and 25%
in relation to delivery against a mix
of personal, strategic and operational
objectives. The Committee reserves
the right to vary these proportions
in subsequent years and/or to add
additional or substitute measures to
ensure that incentive remains appropriate
to business strategy. However, no more
than 25% of the total bonus will be
based on non-financial targets.
The scale for the profit share element
of any award will be disclosed annually
in arrears.
Unless the Committee determines
otherwise, this scale will normally be
adjusted for any acquisitions / disposals
in a single year which impact (on an
annualised basis) UPBT by more than
7.5%. In such cases the scale will be
adjusted to neutralise the benefit of
any overage above the 7.5% level.
If there is significant transaction
that results in the scale becoming
inappropriate then Shareholders will
be consulted about any adjustment
to the scale.
The award potential at threshold is 25%.
As the arrangement is an annual profit
share there is no pre-set award level for
on-target performance.
140
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Purpose and
link to strategy
Operation
Potential
Performance measures
Performance Share Plan (‘PSP’)
To drive and
reward the
delivery of
longer-term
sustainable
Shareholder
value, aid
retention
and ensure
alignment
of senior
management
and Shareholder
interests.
Awards of shares subject to a
performance period of normally
no less than three years. A holding
period will apply so that Executive
Directors may not normally exercise
vested PSP awards until the fifth
anniversary of the award date.
PSP awards may be in the form
of nil cost options or conditional
awards over shares.
The Committee awards dividend
equivalents on a reinvested basis
in respect of dividends paid over
the vesting or any subsequent
holding period.
Malus/clawback provisions apply,
allowing for the reduction of
awards as explained in the notes
to this table.
The Committee may adjust vesting
of awards if it considers that the
outcome of the measurement of
the performance conditions does
not accurately reflect the underlying
performance or financial health
of the Company. The Committee
may adjust or amend awards in
accordance with the PSP rules.
Maximum annual award potential
of 200% of salary (PSP rules limit).
Subject to an overall maximum of
£1.2m per annum per participant.
For a new Executive Director, the
Committee would determine the
appropriate normal maximum
taking into account the role
and responsibility, subject to a
maximum of 200% of base salary
p.a. (or if lower £1.2m p.a.).
Performance conditions for future
awards are reviewed annually to ensure
that the measures and their targets
remain appropriate to business strategy
and are sufficiently challenging, and that
the relative balance of the performance
measures remains appropriate for
properly incentivising and rewarding
the creation of longer-term sustainable
Shareholder value. Performance
conditions are initially proposed to be
based on three measures:
§
Relative TSR against the FTSE 250
(excluding investment trusts) or
other appropriate comparator group;
§
Earnings per share; and
§
Return on Capital Employed.
The Committee may review the
performance measures for the PSP
to ensure they remain aligned to
the Group’s strategy. Appropriate
dialogue would take place with major
Shareholders in advance of any
substantial changes to the performance
measures used for the PSP.
No more than 25% of an award vests
for threshold performance.
UK tax advantaged all-employee share plans
Share plans
available to all
UK employees
in the Group
who satisfy
the statutory
requirements.
Executive Directors are eligible
to participate in any of the
Group’s all-employee share
plans on the same terms as
other UK employees.
Maximum Partnership Shares in
accordance with statutory limits.
The Company does not presently
offer Free Shares, Matching
Shares or Dividend Shares.
n/a
Shareholding requirements
To encourage
share
ownership by
the Executive
Directors and
ensure interests
are aligned.
Executive Directors are expected
to purchase and/or retain all shares
(net of tax) which vest under the
Group’s share plans (or any other
discretionary long-term incentive
arrangement introduced in the
future) until such time as they
hold a specified value of shares.
Only beneficially owned shares
and PSP awards subject to a
holding period (discounted for
anticipated tax liabilities) may be
counted during the holding period
for the purposes of the guidelines.
Share awards do not otherwise
count towards this requirement.
Once shareholding guidelines
have been met, individuals are
expected to retain these levels as
a minimum. The Committee will
review shareholdings annually in
the context of this Policy.
700% of base salary for all
Executive Directors.
The shareholding requirement
will apply for a period of two
years from the date on which an
Executive Director stands down
from the Board. The requirement
in these circumstances will be
to retain shares with a value
equivalent to the lower of either:
250% of base salary; or the value
of shares held at the date of
standing down from the Board.
In these circumstances, however,
the requirement will not apply
either to shares purchased by
an Executive Director with their
own funds or obtained under
awards granted at recruitment
to buy-out awards from a
previous employer.
n/a
Remuneration Policy
continued
141
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Remuneration Policy for Non-Executive Directors
Approach to fees
Operation
Other items
Fees for the Chair and other
Non-Executive Directors are set
at an appropriate level taking
into consideration individual
roles and responsibilities, the
time commitment required and
external market practice.
Fees will normally be reviewed
annually, generally with reference
to the typical UK workforce-
related increase. More substantial
increases may be made having had
regard to any change in the size
and complexity of the Company
and/or increase in expected
time commitment.
All fees for membership of the
Board are subject to the maximum
payable to Non-Executive Directors
as stated in the Company’s Articles
of Association (currently £500,000
for NED base fees) and within an
additional limit determined by
the Non-Executive Chair and the
Executive Directors on behalf of the
Board of £200,000 for any additional
responsibility or other special fees.
Fees payable to the Non-Executive
Directors are determined by the
Board Chair and the Executive
Directors on behalf of the Board.
Fees payable to the Board Chair are
determined by the Committee.
The Non-Executive Director fee
policy is to pay:
§
a basic fee for membership of
the Board; and
§
additional fees for chairing a
Committee and to the Senior
Independent Director to reflect
the additional responsibilities and
time commitment of the roles.
The Board Chair receives an all-
inclusive fee for the role.
Additional fees for membership of
a Committee or chairmanship or
membership of subsidiary boards or
other fixed fees may be introduced,
if considered appropriate.
Non-Executive Directors are not
entitled to participate in any of the
Group’s incentive arrangements or
share schemes.
Non-Executive Directors do
not currently receive any
taxable benefits (however, they
are covered by Directors and
Officers liability insurance).
Expenses incurred in the
performance of Non-Executive
duties for the Company may be
reimbursed or paid for directly by
the Company, including any tax due
on the benefits.
Additional benefits may be
provided in the future if the Board
considered this appropriate (e.g.
travel allowances for NEDs based
outside of Europe).
The Committee may make minor amendments to the Policy (for example for regulatory, exchange control, tax or
administrative purposes or to take account of a change in legislation) without obtaining Shareholder approval for
that amendment.
The Committee reserves the right to make any remuneration payments and payments for loss of office (including
exercising any discretions available to it in connection with such payments) notwithstanding that they are not in line
with the policy set out above where they are in settlement of any claim or compromise based on legal advice or the
terms of the payment were agreed before the Policy came into effect or at a time when the relevant individual was
not a Director of the Company and, in the opinion of the Committee, the payment was not in consideration for the
individual becoming a Director of the Company. For these purposes, ‘payments’ includes pension payments under
legacy defined benefit pension plans and the satisfaction of awards of variable remuneration and, in relation to an
award over shares, the terms of the payment were ‘agreed’ at the time the award was granted.
Malus and clawback
Malus (being the reduction or forfeiture of bonus or unvested awards) and clawback (being the ability of the Company
to reclaim paid amounts as a debt) provisions apply to the annual performance-related profit share and the PSP. These
provisions may be applied where the Committee considers it appropriate to do so following: a material misstatement
of the Group’s financial results; serious misconduct by the individual; a factual error in calculating an award or vesting;
and other exceptional developments which have an actual or potential material adverse effect on the value or
reputation of the Group as determined by the Committee.
Clawback will apply for a two-year period post the vesting of awards. In the event of a regulatory or criminal inquiry
being ongoing at that point, the clawback period will be extended to a six-month period post the conclusion of such
an inquiry. This is viewed as being appropriate in light of the nature of the majority of transactions within Savills and
its business cycle.
142
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DIRECTORS’ REMUNERATION REPORT
continued
Clawback or malus may apply where stated in the above table. Other elements of remuneration are not subject
to clawback or malus. The Committee may increase the proportion of annual performance-related profit
share deferred into shares. The PSP will be operated in accordance with the rules of that plan as approved by
Shareholders. In accordance with those rules the Committee has discretion in the following areas (as well as
general administrative discretion):
§
the Committee may adjust the number of shares under award if there is a capitalisation, rights issue, subdivision,
reduction or any other variation in the share capital, a demerger or special dividend;
§
a performance condition for an existing award may be amended if an event occurs which causes the Committee to
consider that an amended performance condition would be a fairer measure of performance and would be no less
difficult to satisfy;
§
on a change of control or winding up the number of shares will be subject to any relevant performance conditions
and time pro-rated;
§
the Committee has discretion not to apply this reduction or to apply an alternative or no performance condition.
Additionally, participants may have the opportunity to exchange their awards for equivalent awards in the new
holding company; and
§
the Committee has the discretion to treat a demerger as an early vesting event on the same basis as a change
of control.
Performance measures and target setting
Annual performance-related profit share
Performance measures for the annual performance-related profit share are intended to provide a balance between
incentivising executives to meet near-term profit objectives and the creation of longer-term Shareholder value through
an appropriate mix of strategic, operational and personal performance goals.
Consistent with the Group’s partnership style culture, annual profit performance is the primary performance measure.
Targets are set to be appropriately stretching, by reference to the Group’s business plans and to align with returns to
Shareholders over the cycle.
A portion of the award relates to strategic, operational and personal objectives. These objectives are determined
annually by the Committee and incentivise sustainable improvements in the underlying drivers of performance and
the continued development and further growth of the Group.
Performance Share Plan
For the PSP, the 2025 awards use of a mix of relative Total Shareholder Return, Earnings per share and return on
capital employee-based measures to ensure that the Executive Directors are focused on delivering both absolute
bottom line growth and strong returns to Shareholders relative to an appropriate comparator group. In the event
the Committee considered it appropriate to change the performance measures for the PSP, any new measure would
be selected to be in line with the Group’s long-term business strategy and to support the delivery of the Group’s
sustainability goals and long-term Shareholder value creation. Appropriate dialogue would take place with major
Shareholders in advance of any substantial changes to the performance measures used for the PSP.
The performance targets for the PSP are reviewed periodically and set taking into account market conditions, external
market forecasts, internal business forecasts and market practice. The Committee may also adjust the targets in the
light of corporate activity (e.g. merger and acquisition activity), capital events or changes to accounting rules to
ensure that targets remain appropriate.
Remuneration arrangements throughout the Group
The remuneration policy for Executive Directors follows the same key principles as that for senior and fee-earning
employees generally in the Group – that salaries are below the market median with a greater emphasis placed on
variable, performance-related remuneration. Any differences in the specific policies generally reflect differences in
market practice for differences in seniority. For support staff, salaries are set around market median levels to ensure
the Group is able to recruit and retain high quality individuals.
Other than Executive Directors, only Group Executive Board members are currently eligible to receive awards under
the PSP on an annual basis. Other senior staff may be granted share awards under the Company’s Deferred Share Plan
if there are particular business reasons for applying a retention element to remuneration.
Remuneration Policy
continued
143
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Approach to remuneration on recruitment
In the event that the Board appoints a new Executive Director, in determining his or her new remuneration package
the Committee would take into consideration all relevant factors including the calibre, skills and experience of the
individual and the market from which they are recruited. In determining the remuneration package the Committee
remains mindful of the need to avoid paying more than is necessary on recruitment.
‘Buy-outs’
To facilitate the recruitment of a new Executive Director, the Committee may make awards to ‘buy-out’ remuneration
forfeited on leaving the previous employer. In doing so, the Committee would take into account all relevant factors
including the form of awards, the vesting conditions attached to the awards and any performance conditions. The
overriding principle will be that any replacement ‘buy-out’ awards will be of up to a comparable commercial value
of the awards that have been forfeited. The Committee may make use of UKLR9.3.2 of the UK Listing Rules for the
purpose of buy-outs only.
Fixed remuneration
The remuneration policy for current Executive Directors reflects the Group’s overall philosophy of setting base salaries
for fee earners which are significantly below market medians and placing greater emphasis on performance-related
elements of reward. However, the Committee is mindful of the need to retain flexibility for the purpose of recruitment,
taking into account the range of potential circumstances which might give rise to the need to recruit a new Executive
Director. Against that background, the policy for the fixed element of reward for a new Executive Director allows:
§
the base salary for a new appointee to be set towards market median levels rather than significantly below market
median levels; or
§
provision of a salary supplement for a period of time as an Executive Director transitions to a lower fixed pay
over time.
Where an Executive Director is located in a different international jurisdiction, benefits may reflect market practice in
that jurisdiction.
New recruits would normally participate in defined contribution arrangements or take a non-pensionable salary
supplement. The level of contribution would be determined at the time of appointment and may be set at a higher
level than set out above. This might arise, for example, where a newly appointed Executive Director is recruited on
a significantly lower salary than in his or her previous position taking into account the structure of remuneration at
Savills. For international appointments, the Committee may determine that alternative pension provisions will operate,
and when determining arrangements the Committee will give regard to the cost of the arrangements, market practice
in the relevant international jurisdiction and the pension arrangements received elsewhere in the Group.
Consistent with the Regulations, the formal caps on fixed pay in the Policy do not apply on recruitment although the
Committee would seek to apply such caps in any element to the extent it considers it to be feasible to do so.
Variable remuneration
The variable remuneration (annual performance-related profit share and PSP awards) for a new recruit would be
consistent with the policy in the table above (excluding buy-outs). In the case of an employee who is promoted to the
position of Executive Director (including if an Executive Director is appointed following an acquisition or merger), it is
the Company’s policy to honour pre-existing awards and contractual commitments.
Non-Executive Directors
In the event of the appointment of a new Non-Executive Director, remuneration arrangements will normally be in line
with those detailed in the relevant table above.
Interim appointments
In the event that an interim appointment is made to fill an Executive Director role on a short-term basis or a Non-
Executive Director taking on an executive function on a short-term basis, then an additional fee or salary supplement
(and/or participation in the variable pay arrangements) may be provided.
144
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Director service contracts and termination policy
When determining the leaving arrangements for an Executive Director, the Committee takes into account any pre-
established agreements including the provision of any incentive plans, typical market practice, the performance and
conduct of the individual and the commercial justification for any payments.
The following summarises our policy in relation to Executive Director service contracts and payments in the event of
a loss of office:
Notice periods
12 months’ notice by either the Company or the Executive Director.
For new appointees, the Committee reserves the right to increase the period of notice required
from the Company in the first year of employment to up to 24 months, decreasing on a monthly
basis to 12 months on the first anniversary of employment.
Contract dates
– Mark Ridley – 1 May 2018
– Simon Shaw – 16 March 2009
Expiry dates
Contracts are rolling service contracts with no expiry date.
Elements of
remuneration
Executive Directors’ service contracts contain provisions relating to base salary, pension, private
medical insurance, car allowance (or the provision of a company car) and confirm their eligibility
to participate (although not necessarily receive any award) in the Company’s annual performance-
related profit share arrangements, the PSP and other employee share schemes.
Termination
payments and
treatment of
the annual
performance-
related profit
share
If an Executive Director’s employment is to be terminated, the Committee’s policy in respect of
the service contract, in the absence of a breach by the Director, is to agree a termination payment
based on the value of base salary and contractual benefits and pension entitlements in their notice
period. In addition, if they are classified as ‘good leavers’ as defined in their Service Agreements
(which expression does not include dismissal due to poor performance or voluntary resignation
unless the Committee so determines), they may also receive a pro-rata annual performance related
profit share and retain outstanding incentive awards. The policy is that, as is considered appropriate
at the time, the departing Executive Director may work, or be placed on garden leave, for all or
part of his/her notice period, or receive a payment in lieu of notice in accordance with the Service
Agreement. The Committee will consider mitigation to reduce the termination payment to a leaving
Director when appropriate to do so, having regard to the circumstances. No performance-related
profit share element would be paid in respect of notice periods not worked.
In addition, where the Director may be entitled to pursue a claim against the Company in respect
of his/her statutory employment rights or any other claim arising from the employment or its
termination, the Company will be entitled to negotiate settlement terms (financial or otherwise)
with the Director that the Committee considers to be reasonable in the circumstances and in the
best interests of the Company and to enter into a Settlement Agreement with the Director to effect
both the terms agreed under the Service Agreement and any additional statutory or other claims,
and to record any agreement in relation to any annual performance-related profit share award, in
line with the policies described above and/or, as below, share awards.
Remuneration Policy
continued
145
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Treatment
of share
incentives
Deferred share awards
Deferred share awards made (or to be made) under the annual performance-related profit share
scheme are subject to forfeiture if the award holder leaves service prior to the vesting date other
than in defined ‘good leaver’ situations. Good leaver circumstances are death, ill-health, injury or
disability, redundancy, retirement, the employing Company being sold or transferred outside of the
Group, or any other reason at the discretion of the Committee.
For ‘good leavers’, any outstanding deferred share award will normally vest on the normal maturity
date (although the Committee has discretion to accelerate to the date of cessation). Where a good
leaver circumstance is at the Committee’s discretion rather than a prescribed circumstance, vesting
may be on such date and such terms as it may determine.
PSP
In the event that a participant is a ‘good leaver’, any outstanding unvested PSP awards will
normally be pro-rated for time in service during the relevant performance period with performance
measured to the end of the performance period and vesting occurring at the normal vesting date.
Any applicable holding period will also normally apply although the Committee may choose to
release such shares earlier. In particular circumstances (e.g. death), the Committee has the power
to vary these provisions, including to allow for early vesting. For all other leavers, outstanding
unvested awards lapse. Good leaver circumstances are leaving due to death, injury, ill-health,
disability, redundancy or any other reason at the discretion of the Committee.
If an award has been granted as an option and a participant ceases to work for the Group after
the option has become exercisable, he/she will normally be permitted to exercise outstanding
options within a period of six months following the end of the performance period or cessation of
employment where this is after the end of the performance period (as appropriate). In the event
of the death of a participant the personal representatives will be able to exercise an option in
accordance with the PSP rules.
All-employee share plans
Sharesave: Awards vest in accordance with their terms, under which ‘good leavers’ are entitled
to receive shares on or shortly after cessation, but other leavers normally forfeit any awards.
Share Incentive Plan (’SIP’): shares which have been held in the SIP for at least five years are
released to leavers free from income tax and social security charges. Some tax and social security
charges will be payable on shares taken out of the SIP within five years of purchase unless the
participant is a ‘good leaver’.
Other awards
Where an award is made for the purpose of recruitment (for example a buy-out award under LR
9.3.2) then the leaver provisions would be determined at the time of award having regard to the
circumstances of the recruitment, the terms of awards being bought out and the principles for
leavers in the current policy.
Other
information
Executive Directors are subject to post employment restrictive covenants for a period of six
months post cessation.
The Company may also meet ancillary costs, such as outplacement consultancy and/or reasonable
legal costs, if the Company terminates an Executive Director’s service contract.
Consideration of conditions elsewhere in the Group
In making remuneration decisions, the Committee considers the pay and employment conditions elsewhere in the
Group. As part of decisions being made on the annual pay review, the Committee is informed about the approach to
salary increase and the outcome of annual performance-related profit share (and other incentive arrangements such
as fee-earner commission schemes) across the Group. The Committee is also provided with comparative metrics on
total employment costs across the Group as a percentage of revenue.
The Company operates a consistent remuneration philosophy across the Group. In this context, the Committee does
not consider it necessary to consult with employees in the Group on the specific remuneration policy for Executive
Directors, although Executive Director pay is included as a standing agenda item for ‘Employee Voice’ forums.
146
Annual Report and Accounts 2024
100%
Minimum
Target
Maximum
£6m
£
£1m
£2m
£3m
£4m
£5m
12%
83%
7%
80%
13%
£5,080,554
£2,878,054
£347,554
5%
£4,769,554
£347,554
Minimum
Target
Maximum
100%
£274,906
£2,206,406
82%
12%
£3,888,906
79%
8%
5%
13%
£6m
£
£1m
£2m
£3m
£4m
£5m
£3,650,906
DIRECTORS’ REMUNERATION REPORT
continued
Consideration of Shareholder views
The Committee takes into account the views of the Group’s Shareholders and investor bodies. The Board and the
Committee (through the Committee Chairman) has open and regular dialogue with our major Shareholders on
remuneration matters, including consulting with major Shareholders where the Committee is considering making
material changes to the remuneration policy.
Illustrations of application of the Policy
The charts below illustrate how much the current Executive Directors could earn under four different performance
scenarios for 2025: ‘Minimum’, ‘On-target performance’, ‘Maximum’ and ‘Maximum with share price growth’, based
on the assumptions below.
Group Chief Executive Officer
Group Chief Financial Officer
Remuneration Policy
continued
Element in the chart above
Component
Minimum
Target
Maximum
Fixed pay
Base salary
2025 base salary
Pension
8% of salary for CEO
8% of salary for CFO
Benefits
2024 ‘single figure’ amount
Annual award
Annual performance-
related profit share
0% of
maximum award
62.5% of
maximum award
CEO – £3.8m
CFO – £2.9m
Long-term award
PSP
0% of
maximum award
25% of
maximum award
CEO – 200% of salary
CFO – 200% of salary
Other assumptions
§
‘Maximum with share price growth’ is as ‘Maximum’ including assumed 50% share
price growth
§
Excludes additional shares representing the value of dividends declared during the vesting
period which may attach to the deferred element of any annual performance-related profit
share award or PSP award at vesting
§
Assumes that no awards are made under tax advantaged all-employee share plans
§
The proposed new policy does not include an “on-target” level for the annual performance-
related profit share so 62.5% of maximum award has been used for illustrative purposes.
Fixed Pay
Annual Award
Long-Term Award
50% share price growth on Long-Term Award
147
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Annual Report on Remuneration
Role of the Committee
The principal role of the Committee is to support the Group to achieve its strategic objectives by designing a
Remuneration Policy consistent with the Group’s business model and values, such that we have the ability to attract,
recruit, retain and motivate the high-calibre individuals needed to deliver the Group’s strategy and promote the
long-term interests of the Company. The Committee also considers the broader implications of the Policy in the
context of environmental, social and governance (‘ESG’) considerations and how the Policy best supports the Group’s
delivery of its objectives in these areas. The Committee is responsible for the broad policy governing senior employee
remuneration. It sets the actual levels of all elements of the remuneration of the Executive Directors, the Chair of the
Company and the GEB members. The Committee also considers workforce remuneration and related policies and the
alignment of incentives and rewards with culture, risk management and the Group’s ESG objectives and when setting
the policy for Executive Director remuneration takes those matters into account. The Policy remains under periodic
review to ensure that it remains consistent with the Company’s scale and scope of operations, supports business
strategy, its environmental, social and governance strategy and its growth plans and helps drive the creation of
Shareholder value. The Committee also oversees the operation of Savills employee share schemes.
Committee members and attendees
As shown in the table below, during the year the Committee comprised the following Independent Non-Executive
Directors, with the following attendees:
Committee member
Position
Status
Richard Orders
Chair of the Committee
Independent
Stacey Cartwright
Member of the Committee
Independent
Dana Roffman
Member of the Committee
Independent
Committee attendee
Position
Status
Mark Ridley
Group Chief Executive Officer
Attended by invitation (except when his own
remuneration was discussed)
Chris Lee
Group Legal Director &
Company Secretary
Provided advice and support (except when his own
remuneration was discussed) as well as acting as
Secretary to the Committee
Korn Ferry
External advisor
Provided independent advice and kept the Committee
up to date on market and best practice developments
Simon Shaw, Group Chief Financial Officer, was invited to attend meetings to provide an overview of market conditions
and the Group’s financial performance.
2024 Attendance
Committee member
Meetings
attended
Meetings
eligible to
attend
Richard Orders
6
6
Stacey Cartwright
6
6
Dana Roffman
6
6
As at 31 December 2024 and up to the date of this Report, the Committee wholly comprised Independent Non-
Executive Directors. Biographies of each of the Committee members can be found on pages 88 to 90.
148
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Annual Report on Remuneration
continued
The Committee met six times during 2024. The principal agenda items considered by the Committee during the
year were as follows:
§
reviewing the existing Policy and its effectiveness and development of a new Policy, including consideration of
Shareholder feedback to initial Policy proposals;
§
reviewing the voting outcome and associated Shareholder feedback relating to the Directors’ Remuneration
Report at the 2024 AGM;
§
determining 2023 performance-based profit share and 2021 LTIP outcomes;
§
considered developments in workforce remuneration;
§
agreeing performance targets for both the 2024 annual performance-related profit share and Performance
Share Plan awards, mindful of uncertain market conditions;
§
preparing an Annual Directors’ Remuneration Report consistent with the legislation relating to
executive remuneration;
§
agreeing the remuneration packages of the Executive Directors and GEB members; and
§
approving the grant of Performance Share Plan awards.
Advisors to the Committee
The Committee receives independent external advice on executive remuneration from Korn Ferry which was
appointed as Remuneration Advisors in 2021. Korn Ferry’s fees for advising the Remuneration Committee during
2024 were £57,380.
The Committee is satisfied that the advice received from Korn Ferry during the year was entirely objective
and independent. The Committee will continue to keep these arrangements under review to ensure that they
remain appropriate to the needs of the Committee in developing remuneration policy to support the delivery of
Group strategy.
The Committee is also advised by the Group Legal Director & Company Secretary (save in relation to matters
concerning his own remuneration).
Given the fundamental role that remuneration plays in the success of the Group, in terms of the recruitment,
incentivisation and retention of high-quality employees, the Group Chief Executive Officer attends meetings by
invitation and is consulted on the remuneration package of the Group Chief Financial Officer and other Group
Executive Board members.
Terms of Reference
The Committee’s Terms of Reference, which are reviewed annually, or by exception to take account of regulatory
changes or best practice, are available from the Group Legal Director & Company Secretary upon request or can be
viewed on the Company’s website (www.savills.com).
149
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Total remuneration for 2024 (audited)
Set out below are details of Executive Director remuneration for 2024.
Executive Directors’ ‘single figure’ for the financial year ended 31 December 2024 and as a comparison for the financial
year ended 31 December 2023.
Mark Ridley
Simon Shaw
2024
£
2023
£
2024
£
2023
£
Salary paid
311,000
311,000
238,000
238,000
Benefits
1
11,674
11,670
17,866
11,216
Pension
24,880
24,880
19,040
19,040
Total fixed remuneration
347,554
347,550
274,906
268,256
Annual profit share – cash
1,326,500
920,000
1,019,500
707,000
Annual profit share – deferred shares
1,015,500
610,000
781,500
470,000
Gain on long-term share-based awards
Performance Share Plan – performance element
2
(notional)
–
72,911
–
55,731
Performance Share Plan – share appreciation element
2
(notional)
–
(28,838)
–
(22,043)
Long-term share-based reward (non-cash – notional)
2
–
44,073
–
33,688
Total variable remuneration
2,342,000
1,574,073
1,801,000
1,210,688
Total ie ‘single figure’ (part notional)
2,689,554
1,921,623
2,075,906
1,478,944
Notes:
1.
Benefits comprise private medical insurance and car allowance. For Simon Shaw in 2024 this also includes £6,650 being the cash equivalent of additional
holiday entitlement accruing under the Company’s loyalty holiday reward scheme (and reflecting Simon Shaw’s 15th year of service).
2.
For 2023 the notional value of the PSP award with a performance period which ended on 31 December 2023 (i.e. where the award will vest in November 2026)
has been valued based on the number of shares that will vest and the three-month average share price for the period to 31 December 2023 (850.5p). The actual
value has been split between the relevant value on the date of the original award of the relevant shares (the PSP – performance element) and subsequent
increase in value (PSP – share price appreciation).
Performance-related remuneration for 2024 (audited)
Annual performance-related profit share
The following short-term performance measures applied to the 2024 annual performance-related profit
share arrangements.
75% of the award was based on profit performance, defined as underlying profit performance. The target range
and Savills performance were as follows:
Minimum (25% of element)
Target
(62.5% of element)
% Maximum target
(100% of element)
Savills underlying
profit performance
Bonus award
(% of element)
£101.0m
£127.6m
£157.0m
£130.4m
66
There was straight-line vesting between performance points.
The Committee approved awards of 66% of maximum in respect of the underlying profit performance-related element
(2023: 36%).
The remaining 25% of annual performance-related profit share awards was based on individual performance against
key strategic and operational objectives. The Executive Directors, based on performance against the targets set at the
start of the year, were each awarded 90% of this 25%.
The Committee set strategic and operational objectives for the Executive Directors consistent with the Group’s
strategic growth focus and with ensuring that the Group remained its strong financial position through the period,
core bench-strength and client service levels were maintained, and which were aligned with longer-term value
creation for Savills.
150
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
The tables overleaf set out the strategic and operational targets set for the Executive Directors and their actual
performance against the targets (amended for commercial sensitive information as appropriate):
Mark Ridley:
Target
Achievement
1.
Implement performance improvement
plans for Savills North America and
Savills Continental European & Middle
East businesses
Plans implemented with both regions delivering significant improvements in
performance year-on-year:
(i) Savills US delivering UPBT of £3.3m in FY24 (FY23 : loss £8.4m); and
(ii) Savills CEME reducing its loss to £7.4m (FY23 : loss £19.1m).
2.
Develop GOS platform across all main
markets to ensure comprehensive integration
(with roll out of Knowledge Cubed and Lease
Administration platforms)
Good progress made, with overall leasing and occupier-focused transactional
revenues increasing by 8% year-on-year, with mandated Global Occupier Services
(‘GOS’) growing revenue by 24% during the year.
3.
Continue the development and integration
of Global Residential network, with focus on
prime European, Middle Eastern and APAC
Expanded the Global Residential offering further through the acquisition of
the business and assets of Pastor Real Estate Limited in the UK and Verbier
Hospitality SA in Switzerland and increased the Group’s shareholding in its prime
residential agency business in the French Riviera (Riviera Estates SAS) to 75%.
We also invested significantly in prime residential in the United Arab Emirates
and further invested in residential sales in Sydney and Melbourne, Australia.
4.
Accelerate growth across Consultancy
services, in particular Green Fit and
Sustainability advisory, as well as
consideration of Cost Consultancy and
M&E Consultancy
Global Consultancy revenue increased by 8% to £495.5m (2023: £459.8m).
Recovery in some of the services which were particularly challenged in prior
periods allowed the Global business to achieve operational leverage to increase
underlying profits by 17% to £41.5m (2023: £35.6m); 18% on a constant currency
basis. In particular, in the UK alongside high single digit growth in Property
Management and double-digit growth in Facilities Management, Savills Energy
Sourcing and Sustainability teams generated good revenue growth and a
significant improvement in underlying profits as a consequence of the
‘Green-fit’ agenda.
5.
Ensure progress is maintained on delivering
our 2030 Net Zero targets in relation to
scope 1 and 2 GHG emissions
Ensure progress to reduce scope 3 GHG
emissions from purchased goods and
services in line with our 2030 target
Group Net Zero Plan achieved SBTi validation in February 2024.
Further progress on reducing GHG emissions, Savills achieved a 31.6% reduction
on its scope 1 and 2 emissions since the 2019 Base Line.
Work in progress with further steps to be taken to achieve the targeted 51.6% per
million GBP of value added reduction target from the 2022 Base Line.
6.
Finalise succession planning across Asia
Pacific region, with promotion / recruitment
of next generation leadership
Plans finalised, and successors now in place across the Asia Pacific region.
Reflecting this, new CEO Asia Pacific ex-Greater China appointed and announced
effective 1 January 2025.
7.
As part of UK and CEME succession planning
oversee the introduction of a new EMEA
Strategy Board, including implementing
succession plans at country-level Boards
New EMEA Strategy Board established effective 1 July 2024 to lead the EMEA
including UK business, with supporting succession plans at country-level
implemented through H2, 2024.
8.
North America: support the leadership
transition under David Lipson, including
the appointment of a President (North
America) in H1, together with the
appointment of a Global leader for the
Occupier Services platform
Leadership succession successfully progressed, with in particular:
President North America appointed effective 1 July 2024
Chief Operating Officer appointed effective 1 January 2024
Global CEO, Occupier Services appointed effective 1 July 2024
North America CFO succession effective 1 January 2025.
9.
Continue to seek out strategic M&A
and strategic recruitment opportunities
consistent with the Group’s growth strategy
Focus maintained on our strategy of expanding our Global Prime Residential
services with the acquisition of an agency in Switzerland (Verbier Hospitality SA)
and an increase in our shareholding in our agency network in the Riviera region
of France (Riviera Estates SAS). We also invested significantly in starting a prime
residential agency in the United Arab Emirates and further invested in residential
sales in Sydney and Melbourne, Australia. On the Commercial side, the Group
acquired Situu Limited, a market leading flexible office advisory business in the
UK to complement our WorkThere flexible occupier service.
In the second half of the year, we increased our shareholding in, and began to
consolidate the results of, the fast-growing full-service real estate consultancy
in India (Savills Property Services (India) Private Limited) and a leading supply
chain and logistics consultancy based in Malaysia (LCA Core Sdn Bhd Group).
In addition, the Group acquired a project management consultancy in Malaysia
(PMCC Actus Sdn Bhd) and a residential property management business in
Spain (Medasil Desarrollos SL).
Annual Report on Remuneration
continued
151
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Simon Shaw:
Target
Achievement
1.
Subject to overall market conditions, ensure
focus on margin improvement continues
Identifying and deliver cost savings and
improve operating efficiency through the
adoption of technology
Group margin improved to 5.4% in 2024 (FY23 : 4.2%)
Cost and operating efficiency improvements in particular secured in Savills IM
through a restructuring programme and in Savills France and Savills Germany.
Platform upgrades across the business, including both operating and finance
systems, and service-specific digital transformation programmes.
2.
Oversee and sponsor the Group’s multi-year
technology initiatives, maximising cross
fertilisation of initiatives, including:
i.
Progressing the UK Valuations
digitalisation programme – continue roll
out and broaden adoption
ii.
Athena property database progressive
roll out and integration of unique data
(e.g. Incans)
iii.
The progressive harmonisation of
accounting systems across the Group
based upon AX Dynamics implementations
where economically viable. Including the
upgrade of Savills UK to D365
iv.
Sponsor well-governed project to
implement Dynamics AX and HR system
in North America (‘Next Gen’)
v.
Ensure Group Cyber Security Committee
meets its objectives to minimise cyber
risk as far as practicable
i.
The Group’s Valuation digitalisation programme continued successfully
with further phases of the Valuation Workflow System launched, and
successfully rolled out across UK valuation business
ii.
The usage of Athena almost doubled during 2024 as it was adopted
nationally across the UK business. A number of new proprietary
data sources (including Incans) were incorporated and two-way
integrations into other platforms (such as ‘Savills Maps’) went live
during the year
iii.
The upgrade of Savills UK finance system to D365 went live in May, with
the harmonisation of accounting systems in other subsidiaries continuing
iv.
Phase One of the North America ‘Next Gen’ implementation successfully
went live to schedule in September 2024
v.
The Group Cyber Security Committee continued to oversee the
development of the Group’s cyber security protections in the
light of evolving threats. In parallel, the programme of Information
Security training across the Group was maintained with a specific focus
on the secure use of ‘AI’ tools.
3.
Chair the Group’s Proptech investment
vehicle, Grosvenor Hill Ventures, overseeing
all investment/divestment opportunities and
their timing (consistent with the Group’s
focus of investing in its own projects the
data/AI arena in preference to investing in
independent vehicles)
Strong progress continued to be made in developing the Group’s digitally-
enabled businesses, with in particular Savills market leading UK auction business
continuing to take market share in both the UK commercial and residential
auction markets, selling almost £400m of property over the period, up 46% year-
on-year. Cureoscity, the Group’s wholly-owned platform that connects occupiers,
landlords and their managing agents increased annual recurring revenue by over
35% year-on-year. The focus on investigating and experimenting with new and
emerging technologies, including AI, through the Group’s innovation and data
teams globally, was maintained. We now use machine learning technologies
in many of our bespoke data platforms across the Group and use other AI
technologies to help improve efficiencies across multiple service lines.
4.
Ensure progress is maintained on delivering
our 2030 Net Zero targets in relation to
scope 1 and 2 GHG emissions
Ensure progress to reduce scope 3 GHG
emissions from purchased goods and
services in line with our 2030 target
Group Net Zero Plan achieved SBTi validation in February 2024. Further progress
on reducing GHG emissions, Savills achieved a 31.6% reduction on its scope 1 and
2 emissions since 2019.
Work in progress with further steps to be taken to achieve the targeted 51.6% per
million GBP of value added reduction target from the 2022 Base Year.
Based on a testing of the ten target objectives set for each Executive Director at the start of the year, as detailed
above, nine were met. The shared ESG objective of progressing work to reduce scope 3 emissions was the objective
that was not scored as having been achieved (or exceeded). While progress was made during the year, further work is
to be undertaken in relation to effective management of scope 3 emissions to ensure delivery of our 2030 target.
As described in the Chair’s introduction earlier in this report, the Committee considered the formulaic outcome of 72%
of maximum (combined for financial and strategic performance) and deemed it to be appropriate and that it reflected
the financial and non-financial performance of the business and the experience of stakeholders. In reaching this
conclusion, the Committee had regard to the year-on-year growth underlying profit of 37.6% and the TSR delivered
during 2024 of 9%. In light of this, the Committee was comfortable that the out-turn was aligned with underlying
performance and the broader stakeholder experience. Accordingly, the bonuses earned were as follows:
§
Group Chief Executive Officer – £2,342,000
§
Group Chief Financial Officer – £1,801,000
In line with the Policy, 50% of the overall awards, above an amount equal to their respective base salaries, will be
deferred for a further three-year period in the form of shares.
152
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Long-term incentives (audited)
The PSP award granted in 2022 was subject to performance in the three years to 31 December 2024. Following an
assessment of Savills performance against targets set at grant, the Committee determined that the award had not met
the performance criteria and would therefore lapse.
The targets and Savills performance were as follows:
Weighting
Threshold target
(25% vesting)
Maximum target
(100% vesting)
Savills
performance
Vesting (% of
maximum)
Relative TSR versus FTSE Mid 250
index (excluding investment trusts)
1/3
Equal to index
Outperform index
by 8% p.a.
Below
threshold
0%
% EPS growth
1/3
RPI plus 6% p.a.
compounded
RPI plus 12% p.a.
compounded
Below
threshold
0%
Return on capital employed
1/3
15%
25%
Below
threshold
0%
Non-Executive Directors fees (audited)
The Non-Executive Director fees for 2024 were as follows:
Stacey
Cartwright
(Chair)
Adriana
Karaboutis
Philip
Lee
Richard
Orders
Dana
Roffman
Marcus
Sperber
Florence
Tondu-
Mélique
John
Waters
Basic fee
£240,000
£46,212
£57,650
£57,650
£57,650
£57,650
£57,650
£57,650
Additional fees:
Senior Independent
Director
£8,000
Remuneration
Committee Chair
£10,000
Audit Committee
Chair
£15,000
2024 Total
£240,000
£46,212
£57,650
£75,650
£57,650
£57,650
£57,650
£72,650
2023 Total
£80,650
–
£57,650
£67,650
£57,650
£57,650
£57,650
£2,974
Notes:
Adriana Karaboutis joined the Board effective 14 March 2024.
Stacey Cartwright was appointed Chair effective 1 January 2024.
Richard Orders replaced Stacey Cartwright as Senior Independent Director effective 1 January 2024.
John Waters joined the Board effective 13 December 2023.
The fees payable to the Non-Executive Directors are determined by the Non-Executive Chair and the Executive
Directors after considering external market data and individual roles and responsibilities. The fee for the Board Chair is
determined by the Remuneration Committee.
The base fee for the Non-Executive Directors for 2024 was £57,650 p.a., with additional fees payable to the Senior
Independent Director (£8,000 p.a.), the Audit Committee Chair (£15,000 p.a.) and the Remuneration Committee
Chair (£10,000 p.a.).
The Chair fee for 2024 was £240,000 p.a.
The Non-Executive Directors do not participate in incentive arrangements or share schemes.
Annual Report on Remuneration
continued
153
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Operation of Policy in 2025
Base salary
The base salaries of the Executive Directors will be unchanged from 2024 as follows:
§
Group Chief Executive Officer: £311,000 p.a.; and
§
Group Chief Financial Officer: £238,000 p.a.
In line with our Policy, the base salaries for the Executive Directors continue to be positioned significantly below
market median against the FTSE 250 Index.
Variable remuneration
Annual performance-related profit share
The maximum annual performance-related profit share opportunity for 2025 will be:
§
£3.8m for the Group Chief Executive Officer; and
§
£2.9m for the Group Chief Financial Officer.
For the 2025 performance-related profit share, 75% of award potential will reflect the Group’s underlying
profit performance and 25% of award potential will reflect delivery against a mix of personal, strategic and
operational objectives.
The Committee considers prospective disclosure of individual objectives to be commercially sensitive and disclosure
will therefore be on a retrospective basis. The targets are similarly challenging to those set in 2024 having had regard
to current internal plans, external expectations for our future performance and current market conditions.
The Committee retains a general discretion to adjust the formulaic outcome to reflect exceptional events over the
performance period.
Performance Share Plan
The remuneration policy is for maximum awards of 200% of base salary. The PSP awards for 2025 will be 200% of
base salary for both Executive Directors.
Awards will vest subject to the satisfaction of absolute EPS growth targets for one-third of the award, TSR
performance for one-third of the award and Return on Capital Employed for the remaining one-third of the award.
The Committee is still in the process of agreeing the precise targets and full details of these will be set out in the RNS
announcement issued immediately after the PSP award is granted.
The awards made to Executive Directors will also be subject to a holding period so that any PSP awards for which
the performance vesting conditions are satisfied will not normally be released for a further two years from the
third anniversary of the original award date. Dividend accrual for PSP awards will continue until the end of the
holding period.
As detailed in the Chair’s Introductory Statement, the Committee is in the process of finalising the specific targets
to apply to the 2025 PSP awards given current market conditions and will include the targets in the market
announcement of the awards.
154
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Relative spend on pay
To provide context and outline how remuneration for Executive Directors compares with other disbursements, such
as dividends and general employment costs, the table below illustrates general employment costs, Executive Director
reward, tax charges and dividend payments to Shareholders in 2024 and 2023.
2024
£m
2023
£m
%
Movement
Employment costs
1,581.4
1,496.3
+6
Underlying profit before tax
130.4
94.8
+38
Dividend payment to Shareholders
41.2
31.2
+32
Executive Director remuneration
4.8
3.8
+26
Tax
163.4
138.3
+18
§
Employment costs (excluding arrangements for Executive Directors) comprise basic salaries, profit share and
commissions, social security costs, other pension costs and share-based payments
§
Tax comprises corporation tax, employers’ social security and business rates and equivalent payments
§
The dividend cost for 2024 comprises the cost of the final dividend recommended by the Board (amounting to
£19.8m) alongside the supplemental interim dividend (amounting to £11.7m), payment is subject to Shareholder
approval at the Company’s AGM scheduled to be held on 14 May 2025 (payable to Shareholders on the Register of
Members as at 11 April 2025) and the interim dividend (£9.7m) paid on 30 September 2024
§
Executive Director remuneration is the remuneration paid to the Group Chief Executive Officer and Group Chief
Financial Officer role holders and comprises basic salaries, profit share, social security costs, pension costs and
share-based payments.
Total Shareholder return and Group Chief Executive Officer remuneration
The Total Shareholder Return delivered by the Company over the last ten years is shown in the chart below.
Annual Report on Remuneration
continued
The Board believes that the FTSE 250 Index (excluding investment trusts) remains the most appropriate index against
which to compare TSR over the medium term as it is an index of companies of similar size to Savills. Savills TSR
relative to that of the FTSE 350 Super Sector Real Estate Index is also shown, as this index better reflects conditions
in real estate markets over recent years.
50
100
150
200
250
300
0
Dec
14
Dec
15
Dec
16
Dec
17
Dec
18
Dec
19
Dec
20
Dec
21
Dec
22
Dec
23
Dec
24
Savills
FTSE 250 (excluding investment trusts)
FTSE 350 Super Sector Real Estate
155
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Pay for performance
Year
Chief Executive Officer
Total single figure
remuneration
£’000
Underlying
profit
£m
Underlying
profit annual
% change
Annual variable
element:
performance-
related profit
share – annual
award against
maximum
potential %
Long-term
incentive to
vest (maximum
potential of
award) %
2024
Mark Ridley
2,690
130.4
+38
66
0
2023
Mark Ridley
1,922
94.8
-42
36
12
2022
Mark Ridley
2,815
164.6
-17.8
67.5
11
2021
Mark Ridley
3,504
200.3
107.3
100
100
2020
Mark Ridley
1,294
96.6
-32.6
38
23
2019
Mark Ridley
2,377
143.4
-0.2
84
50
2018
Jeremy Helsby
2,196
143.7
+2.3
82
41
2017
Jeremy Helsby
2,507
140.5
+3.5
80
84
2016
Jeremy Helsby
2,595
135.8
+12
98
50
2015
Jeremy Helsby
2,298
121.4
+21
100
N/A
2014
Jeremy Helsby
3,279
100.5
+34
100
100
Total remuneration includes, as required, the notional value of PSP awards and executive share options which vested
(but were not exercised) in those years.
Annual percentage change in remuneration of Directors and employees
The table below shows a comparison of the annual change of each individual Director’s pay to the annual change in
average employee pay. Average employee pay is based on a Full Time Equivalent (‘FTE’) calculation.
Percentage change in remuneration from
31/12/2023 to 31/12/2024
Percentage change in remuneration from
31/12/2022 to 31/12/2023
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Mark Ridley
1
0
0
53
0.9
1.2
-31
Simon Shaw
2
0
59
53
0.9
0
-31
Stacey Cartwright
3
198
n/a
n/a
2.6
n/a
n/a
Adriana Karaboutis
4
n/a
n/a
n/a
n/a
n/a
n/a
Philip Lee
5
0
n/a
n/a
2.6
n/a
n/a
Richard Orders
6
12
n/a
n/a
2.6
n/a
n/a
Dana Roffman
0
n/a
n/a
2.6
n/a
n/a
Marcus Sperber⁷
0
n/a
n/a
n/a
n/a
n/a
Florence Tondu-Mélique
0
n/a
n/a
2.6
n/a
n/a
John Waters⁸
2,342
n/a
n/a
n/a
n/a
n/a
All UK employees⁹
4.3
6.7
8.2
3.9
5.4
-14.7
156
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Annual Report on Remuneration
continued
Percentage change in remuneration from
31/12/2021 to 31/12/2022
Percentage change in remuneration from
31/12/2020 to 31/12/2021
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Mark Ridley
1
4.5
-59.9
5.2
0
159
165
Simon Shaw
2
4.6
0
7.9
0
0
165
Stacey Cartwright
3
1.9
n/a
n/a
12
n/a
n/a
Adriana Karaboutis
4
n/a
n/a
n/a
n/a
n/a
n/a
Philip Lee
5
2.7
n/a
n/a
n/a
n/a
n/a
Richard Orders
6
5
n/a
n/a
n/a
n/a
n/a
Dana Roffman
2.7
n/a
n/a
0
n/a
n/a
Marcus Sperber⁷
n/a
n/a
n/a
n/a
n/a
n/a
Florence Tondu-Mélique
2.7
n/a
n/a
0
n/a
n/a
John Waters⁸
n/a
n/a
n/a
n/a
n/a
n/a
All UK employees⁹
8.5
3.5
-13.5
-3.9
-1.1
34.3
Percentage change in remuneration from
31/12/2019 to 31/12/2020
Percentage
change in
base salary /
fee %
Percentage
change in
benefits %
Percentage
change in
profit share
award %
Mark Ridley
1
2
1
-52.5
Simon Shaw
2
2
-28
-52.5
Stacey Cartwright
3
9
n/a
n/a
Adriana Karaboutis
4
n/a
n/a
n/a
Philip Lee
5
n/a
n/a
n/a
Richard Orders
6
n/a
n/a
n/a
Dana Roffman
n/a
n/a
n/a
Marcus Sperber⁷
n/a
n/a
n/a
Florence Tondu-Mélique
1
n/a
n/a
John Waters⁸
n/a
n/a
n/a
All UK employees⁹
-2.4
2.8
-7.3
Notes:
1.
Mark Ridley’s 2021 benefits include £17,539 cash equivalent of additional holiday entitlement accruing under the Company’s loyalty holiday reward scheme
(and reflecting Mark Ridley’s 25th year of service).
2.
Simon Shaw’s 2024 benefits include £6,650 cash equivalent of additional holiday entitlement accruing under the Company’s loyalty holiday reward scheme
(and reflecting Simon Shaw’s 15th year of service).
3.
Appointed Senior Independent Director 1 January 2021. Appointed Chair 1 January 2024.
4.
Appointed 14 March 2024.
5.
Appointed 1 January 2021.
6.
Appointed 1 January 2021. Appointed Senior Independent Director 1 January 2024.
7.
Appointed 15 December 2022.
8.
Appointed 13 December 2023.
9.
Salary, benefits and bonus is compared against full-time equivalent UK employees.
157
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
CEO to employee pay ratio
The table below shows how the CEO’s single figure remuneration (as taken from the single figure remuneration table
on page 149) compares to the equivalent single figure remuneration for full-time equivalent UK employees, ranked at
the 25th, 50th and 75th percentile.
Year
Method
25th percentile
pay ratio
Median pay ratio
75th percentile
pay ratio
2024
Option A
101 : 1
71 : 1
41 : 1
2023
Option A
76 : 1
54 : 1
30 : 1
2022
Option A
129 : 1
86 : 1
47 : 1
2021
Option A
144 : 1
102 : 1
56 : 1
2020
Option A
64 : 1
40 : 1
22 : 1
Notes to the CEO to employee pay ratio:
The regulations provide three options which may be used to calculate the pay for the employees at the 25th percentile,
median and 75th percentile. We have used Option A, following guidance that this is the preferred approach of some
proxy Advisors and institutional Shareholders. Option A captures all relevant pay and benefits for all employees in line
with the single figure for remuneration calculated for Executive Directors.
The ratios shown are representative of the FTE 25th percentile, median and 75th percentile pay for UK employees
within the Group as measured on 31 December 2024.
The pay for part-time employees has been grossed-up to one FTE.
The Committee has reviewed the employee data and believes the median pay ratio to be consistent with the pay,
reward and progression policies for the Company’s UK employees over the period. There has been particular
focus again this year on the pay of more junior employees to continue to help mitigate the increase in the cost of
living which particularly impacts at this level. The increase in the ratio for 2024 compared with 2023 reflects the
improvement of Company performance year-on-year.
The CEO’s pay is based on the ‘single figure’ of remuneration set out on page 149 of this report. Because a large
portion of the CEO’s pay is variable, the pay ratio is heavily dependent on the outcomes of variable pay plans and, in
the case of long-term share-based awards, also share price movements.
Casual employees and those on zero-hours contracts have their pay annualised based on their hourly rate, using 37.5
hours per week x 52 weeks per year.
The total pay and benefits and the salary component of total pay and benefits for the employees at each of the 25th
percentile, the median and the 75th percentile are shown below:
Salary
Total pay and benefits
Year
25th
percentile
Median
75th
percentile
25th
percentile
Median
75th
percentile
2024
£23,590
£30,833
£47,907
£26,623
£38,135
£66,028
Notes to the calculations:
1.
For Savills IM, Partnership members within the Affordable and DRC businesses are excluded from this report.
158
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Annual Report on Remuneration
continued
Pensions disclosure (audited)
During 2024 Company pension allowances for the Group Chief Executive Officer and the Group Chief Financial Officer
were 8% of base salaries, consistent with the pension contributions for the wider UK workforce.
Mark Ridley no longer accrues a pension benefit under the Company’s legacy defined benefit pension plan. The value
of the legacy benefit is shown below.
Executive Director
Defined benefit
pension accrued at
31 December 2024
Defined benefit
pension accrued at
31 December 2023
Defined benefit
pension accrued at
31 December 2022
Defined benefit
pension accrued at
31 December 2021
Mark Ridley
45,560
42,339
39,501
36,468
Mark Ridley’s accrued pension ceased to be linked to salary from 29 February 2016, at which point the accrued
pension was £31,875 p.a. The pension now increases in line with the standard revaluation provisions of the Plan that
apply to all deferred pensioners. The amounts shown include revaluation to 31 December 2021, 31 December 2022,
31 December 2023 and 31 December 2024 respectively. No additional benefit is due in the event of early retirement.
Share interests
Details of shares in the Company which the Directors beneficially held or had a beneficial interest in as at 31 December
2024 are shown below.
Where the performance conditions attaching to any PSP award have been satisfied and the award is due
to vest in the future, the PSP award shares (discounted for anticipated tax liabilities) will count towards the
shareholding requirements:
Executive Directors
Number
of shares
(including
beneficially
held under
the SIP)
Unvested
shares with
performance
conditions
attaching
satisfied
(discounted
for anticipated
tax liabilities)
(PSP)
Total share
interests
that count
towards the
shareholding
requirement
Unvested
shares subject
to performance
conditions
(PSP)
Deferred
share bonus
plan awards
(vesting not
subject to
performance
conditions)
(DSBP)
Shareholding
requirement
1
Extent to which
shareholding
guideline met
Mark Ridley
231,854
6,820
238,674
182,579
257,829
210,135
114%
Simon Shaw
182,579
5,213
187,792
139,644
196,309
160,810
117%
1.
Shareholding requirement of 700% of salary for both Executive Directors.
The Company currently applies shareholding requirements that the Group Chief Executive Officer and Group Chief
Financial Officer hold shares to the value of seven times their respective base salaries. New Executive Directors will
be expected to build holdings to this level over time, principally through the retention of shares released to them
(after settling any tax due) following the vesting of share awards.
At
31 December
2024
Stacey Cartwright
4,983
Adriana Karaboutis
–
Philip Lee
–
Richard Orders
5,000
Dana Roffman
–
Marcus Sperber
–
Florence Tondu-Mélique
–
John Waters
2,023
As at 13 March 2025, no Director had bought or sold shares since 31 December 2024.
159
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The Savills Sharesave Scheme (audited)
Directors
At 31
December
2023
Granted
during year
Exercised
during year
Lapsed
during year
At 31
December
2024
Market value
at date of
exercise
Exercise price
per share
Exercisable
within six
months from
Mark Ridley
2,371
–
–
–
2,371
–
759p
01.11.25
Simon Shaw
2,371
–
–
–
2,371
–
759p
01.11.25
Scheme interests granted in 2024 (audited)
2024 PSP awards were made on 17 May 2024. As set out in the RNS announcement the terms of the award are as follows:
The following table sets out details of awards made to Executive Directors under the PSP in 2024. The Remuneration
Committee has full discretion to ensure that the final outturns reflect all relevant factors, including consideration of
any windfall gains.
Type of
award
Basis of
award (face
value) 200%
base salary
Performance
period
% vesting
for threshold
performance
% vesting for
maximum
performance
Performance criteria
Mark Ridley
Nil-cost
options
£622,000
1 January
2024 to 31
December
2026
25%
100%
– One-third of award:
Relative Total Shareholder
Return against the FTSE 250
(excluding investment trusts)
– One-third of award:
Earnings per share growth
– One-third of award:
Return on Capital Employed
Simon Shaw
Nil-cost
options
£476,000
Awards will vest subject to the satisfaction of EPS targets for one-third of the award as follows:
§
25% (ie threshold) of the element to vest if the Company’s EPS growth is 6% p.a. compounded;
§
100% (ie the maximum) of the element to vest if the Company’s EPS growth is 20% p.a. compounded or more; and
with straight-line vesting between the two points.
A further one-third of the award will vest subject to the satisfaction of relative TSR performance versus the FTSE Mid
250 Index (excluding investment trusts) (‘the Index’) as follows:
§
25% (ie threshold) of the element to vest if the Group’s TSR performance equals that of the Index;
§
100% (ie the maximum) of the element to vest if the Group’s TSR performance outperforms the Index by 8% p.a.;
and with straight-line vesting between the two points.
A further one-third of the award will vest subject to the satisfaction of Return on Capital Employed targets as follows:
§
25% (ie threshold) of the element to vest if the Company’s ROCE is 10% p.a.;
§
100% (ie the maximum) of the element to vest if the Company’s ROCE is 20% p.a. or more; and with straight-line
vesting between the two points. ROCE is defined as:
Underlying profit before tax plus JV tax and net interest cost (excluding finance lease interest)
(Opening total debt plus Shareholders’ funds) plus (closing total debt plus Shareholders’ funds) / 2
The range of targets set for both EPS and ROCE were set with reference to both internal planning and external
expectations for our future performance. The targets were set to be realistic at the lower end of the performance
range and stretching at the top end of the range. Overall, the targets were considered similarly challenging to those
targets set in prior years.
The awards made to Executive Directors will also be subject to a holding period so that any PSP awards for which the
performance vesting conditions are satisfied will not normally vest for a further two years from the third anniversary of
the original award date. Dividend accrual for PSP awards will continue until the end of the holding period.
Awards were also made during the year under the Deferred Share Bonus Plan. Details of awards under this plan are set
out on the following page.
160
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Annual Report on Remuneration
continued
The Performance Share Plan (‘PSP’)
Number of shares
Directors
At
31 December
2023
Awarded
during
year
Vested
during
year
Lapsed
during
year
At
31 December
2024
Date of
grant
Closing
mid-market
price of a
share the
day before
grant
Market
value at
date of
vesting
First
vesting
date
Mark Ridley
62,997
–
62,997
–
–
15.04.19
917.5p
1,020p
15.04.24
7,682
–
–
–
7,682
30.06.20
833.0p
–
30.06.25
41,933
–
–
36,750
5,183
25.11.21
1,407p
–
25.11.26
56,803
–
–
–
56,803
20.04.22
1,095p
–
20.04.27
65,336
–
–
–
65,336
21.04.23
952.0p
–
21.04.28
–
53,620
–
–
53,620
17.05.24
1,160p
–
17.05.29
Simon Shaw
48,174
–
48,174
–
–
15.04.19
917.5p
1,020p
15.04.24
5,872
–
–
–
5,872
30.06.20
833.0p
–
30.06.25
32,054
–
–
28,092
3,962
25.11.21
1,407p
–
25.11.26
43,397
–
–
–
43,397
20.04.22
1,095p
–
20.04.27
50,000
–
–
–
50,000
21.04.23
952.0p
–
21.04.28
–
41,034
–
–
41,034
17.05.24
1,160p
–
17.05.29
The PSP award granted in 2021 was subject to performance in the three years to 31 December 2023. Following the
assessment of Savills performance against targets set at grant, the Committee determined that 12.3% of the award had
met the performance criteria and will vest at the end of the two-year holding period in November 2026. The remainder
of the award lapsed during the year.
Awards over 111,171 shares, together with a further 15,178 shares in lieu of dividends, vested under the PSP to Executive
Directors during the year. A subscription cost of 2.5p nominal value per share is payable on actual receipt of shares.
The total pre-tax gain on awards vested during the year under the PSP was £1,285,948.
161
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The Deferred Share Bonus Plan (‘DSBP’)
Number of conditional share awards
Directors
At
31 December
2023
Awarded
during
year
Vested
during
year
At
31 December
2024
Date of
grant
Closing
mid-market
price of a
share the day
before grant
Market
value at
date of
vesting
First
vesting
date
Mark Ridley
23,926
–
23,926
–
17.06.21
1,174p
1,137p
17.06.24
90,045
–
–
90,045
20.04.22
1,095p
–
20.04.25
108,981
–
–
108,981
21.04.23
952.0p
–
21.04.26
–
58,541
–
58,541
24.04.24
1,042p
–
24.04.27
Simon Shaw
17,747
–
17,747
–
17.06.21
1,174p
1,137p
17.06.24
67,328
–
–
67,328
20.04.22
1,095p
–
20.04.25
83,876
–
–
83,876
21.04.23
952.0p
–
21.04.26
–
45,105
–
45,105
24.04.24
1,042p
–
24.04.27
Awards granted under the DSBP to Executive Directors during the year were based on 50% of the 2023 annual
performance-related profit share above an amount equal to their respective base salaries in line with the Policy. Under
the DSBP awards over 41,673, shares and 3,481 shares in lieu of dividends vested to Executive Directors during the
year. The total pre-tax gain on DSBP awards vested during the year was £513,401. No DSBP awards lapsed.
During the year, the aggregate gain on the exercise of share options and shares vested was £1,799,349. The mid-
market closing price of the shares at 31 December 2024, the last business day of the year, was 1,036p and the range
during the year was 912p to 1,276p.
Payments to past Directors
No payments to past Directors were made during the year that are required to be reported under the Companies
(Directors’ Remuneration Policy and Directors’ Remuneration Report) Regulations 2019.
Payments for loss of office
No payments for loss of office were made during the year.
External directorships
Savills recognises that its Executive Directors may be invited to become non-executive directors of other companies.
Such non-executive duties can broaden experience and knowledge which can benefit Savills. Subject to approval by
the Board and any conditions which it might impose, the Executive Directors and Group Executive Board members are
allowed to accept external non-executive directorships and retain the fees received, provided that these appointments
are not likely to lead to conflicts of interest. For non-executive directorships which are considered to arise by virtue of
an Executive Director’s or Group Executive Board member’s position within Savills, the fees are paid directly to Savills.
During 2024, Simon Shaw received a fee of £62,318.70 in relation to his appointment as Non-Executive Chair of
Synairgen plc which he was permitted to keep (as this appointment is not linked to his role within the Company).
Simon retired from the Board of Synairgen plc on 10 October 2024.
162
Annual Report and Accounts 2024
DIRECTORS’ REMUNERATION REPORT
continued
Annual Report on Remuneration
continued
Service contracts
The Executive Directors have rolling service contracts which are terminable on 12 months’ notice by either the
Company or the Executive Director.
Directors
Contract date
Mark Ridley
1 May 2018
Simon Shaw
16 March 2009
The Non-Executive Directors and the Chair have letters of appointment. In line with the UK Corporate Governance
Code, all Directors are subject to annual re-election at the AGM. The Chairman’s letter of engagement allows for
six months’ notice. Appointment of other Non-Executive Directors may be terminated by either party with three
months’ notice.
Director
Date appointed to Board
End date of current letter of appointment
Stacey Cartwright
1 October 2018
31 December 2026
Adriana Karaboutis
14 March 2024
13 March 2027
Philip Lee
1 January 2021
31 December 2026
Richard Orders
1 January 2021
31 December 2026
Dana Roffman
1 November 2019
31 October 2025
Marcus Sperber
15 December 2022
14 December 2025
Florence Tondu-Mélique
1 October 2018
31 December 2027
John Waters
13 December 2023
12 December 2026
The Directors’ service contracts and letters of appointment are available for inspection at the Company’s City of
London office, 15 Finsbury Circus, London EC2M 7EB.
Shareholder votes on remuneration matters
The table below shows the voting outcomes for the 2023 Annual Remuneration Report at the AGM held on 15 May
2024 and the Directors’ Remuneration Policy approved at the AGM held on 11 May 2022.
Number of
votes ‘For’ and
discretionary
% of
votes cast
Number of
votes ‘Against’
% of
votes cast
Total number
of votes cast
Number
of votes
‘Withheld’*
2023 Annual Directors’
Remuneration Report
111,905,042
99.12%
994,109
0.88%
112,899,151
1,440
Directors’ Remuneration Policy
96,748,672
84.71%
17,464,743
15.29%
114,213,415
429,995
*
A vote withheld is not a vote in law.
163
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
DIRECTORS’ REPORT
In accordance with the UK Financial Conduct
Authority’s UK Listing Rules (UKLR 6.6.4R), the
information to be included in the Annual Report and
Accounts, where applicable, under UKLR 6.6.1R, is set
out in this Directors’ Report.
Other information incorporated into this Report by
reference can be found at:
Page/Note
Strategic Report
6
Principal developments
22
Material existing and emerging risks
and uncertainties
30
Statement of Directors’ responsibilities
167
Corporate Governance Statement
83
Engagement with UK employees
74
Greenhouse gas emissions
53
Engagement with suppliers, customers
and others in a business relationship
100
Financial risk management
187
UK Corporate Governance Code
The Company has complied throughout the year
with all relevant provisions of the 2018 UK Corporate
Governance Code (the ‘Code’). A copy of the Code
is available from the Financial Reporting Council’s
website at www.frc.org.uk.
Operations
The Company and its subsidiaries (together the ‘Group’)
operate through a network of offices and associates
throughout the Americas, the UK, Continental Europe,
Asia Pacific, Africa and the Middle East.
Results and dividends
The results for the Group are set out in the consolidated
income statement on page 178 which shows a
reported profit for the financial year attributable to the
Shareholders of the Company of £53.6m (2023: £40.8m).
An interim dividend of 7.1p per ordinary share amounting
to £9.6m was paid on 30 September 2024. It is
recommended that a final dividend of 14.5p per ordinary
share (amounting to £19.8m) is declared by the Company
at the AGM on 14 May 2025 and, subject to Shareholder
approval, paid on 22 May 2025 to Shareholders on
the register of members as at the close of business
on 11 April 2025 together with a supplemental interim
dividend of 8.6p per ordinary share (amounting to
£2.7m). More details of the proposed dividend and the
Company’s performance can be found in the Chair’s
Statement on pages 6 to 9.
Going concern
The Group’s business activities, together with the factors
likely to affect its future development, performance and
position are set out in the Strategic Report. The financial
position of the Group, its cash flows and liquidity position
are described in the Chief Financial Officer’s Review, with
details of the Group’s treasury activities and exposure
to financial risk included in Note 6 to the consolidated
financial statements.
The Group has prepared its going concern assessment
for the period to the end of June 2026. As in prior years,
the Board undertook a strategic business review in
the current year taking account of the Group’s current
position and prospects, the Group’s strategic plan, and
the Group’s principal risks and the management of
those risks, as detailed in the Annual Report and the
Board’s risk appetite as detailed in the Strategic Report.
Sensitivity analysis was also undertaken, including
financing projections, to flex the financial forecasts
under several severe downside scenarios, which involved
applying different assumptions to the underlying
forecasted revenues, costs and underlying profits both
individually and in aggregate. These scenarios assess
the potential impact from several macro-economic risks,
including a severe global economic downturn analogous
to that experienced during the Global Financial Crisis in
2008/09. The results of this sensitivity analysis showed
that the Group would retain liquidity and maintain
significant available facility and covenant headroom to
be able to withstand the impact of such scenarios over
the period of the financial forecast, as a result of the
resilience and diversity of the Group, underpinned by
a strong balance sheet.
Based on the Group’s positive net cash position of
£176.3m (cash and cash equivalents less overdrafts
in notional pooling arrangements and borrowings)
and undrawn £360.0m revolving credit facility at the
year-end, as described in the Chief Financial Officer’s
review, combined with the assessment explained above,
the Directors have formed the judgement at the time
of approving the financial statements, that there is a
reasonable expectation that the Group has adequate
resources to continue as a going concern for a period of
at least 12 months from the date of the approval of the
financial statements until at least June 2026. For this
reason, they continue to adopt the going concern basis
of accounting in preparing the consolidated financial
statements. On 20 February 2025, the £360.0m RCF was
cancelled and replaced with a new £360.0m RCF which
has an initial 4-year term (with two 1-year extension
options) and can be increased by an additional £90.0m
accordion facility.
Events after the reporting period
There have been no material events affecting the Group
or the Company since 31 December 2024.
164
Annual Report and Accounts 2024
DIRECTORS’ REPORT
continued
Directors
Biographical details of the current Directors are shown
on pages 88 to 90. All the Board members served
throughout the year, save for Adriana Karaboutis who
was appointed on 14 March 2024. As at 31 December
2024 the Board comprised the Non-Executive Chair, two
Executive Directors and seven Non-Executive Directors.
Interests in the issued share capital of the Company
held at the end of the period under review and up to
the date of this Report by the Directors or their families
are set out on page 158 of the Remuneration Report.
Details of share options held by the Directors pursuant
to the Company’s share option schemes are provided in
the Remuneration Report on pages 159 to 161. It is the
Board’s policy that the Group Chief Executive and Group
Chief Financial Officer hold shares in the Company to
the value of seven times their respective base salaries
(£2,177,000 and £1,666,000 respectively).
Directors’ interests in significant contracts
No Directors were materially interested in any contract
of significance.
Indemnification of Directors
In accordance with the Company’s Articles of
Association, and to the extent permitted by law, the
Directors and the Group Legal Director & Company
Secretary are granted an indemnity, in respect of any
liabilities incurred as a result of their holding office. Such
indemnities were in force during the financial year to
31 December 2024 and up to the date of this Report. The
Company also maintains appropriate insurance cover in
respect of legal action against its Directors and Officers.
Management Report
This Directors’ Report, on pages 163 to 166, together
with the Strategic Report on pages 6 to 82, form the
Management Report for the purposes of DTR 4.1.5R.
Additional Information disclosure
Pursuant to regulations made under the Companies
Act 2006 the Company is required to disclose certain
additional information. Those disclosures not covered
elsewhere within this Annual Report are as follows:
Share capital and major shareholdings
The issued share capital of the Company as at
31 December 2024 comprised 144,560,279 2.5p ordinary
shares, details of which may be found on page 243.
The Company has only one class of share capital formed
of ordinary shares. All shares forming part of the ordinary
share capital have the same rights and each carries one
vote. The Directors have authority to allot and issue
ordinary shares and to disapply statutory pre-emption
rights. The powers are exercised under authority of
resolutions of the Company passed at the AGM.
Votes may be exercised at general meetings of the
Company, by members in person, by proxy or by
corporate representatives (in relation to corporate
members). The Articles provide a deadline for the
submission of proxy forms (electronically or by paper)
of not less than 48 hours before the time appointed for
the holding of the general meeting or the adjourned
meeting (as the case may be). A Shareholder can lose
their entitlement to vote at a general meeting where
that Shareholder has failed to provide the Company
with information concerning interests in their shares or
a call or other sum payable by the Shareholder to the
Company in respect of such shares remains unpaid.
There are no unusual restrictions on the transfer of
ordinary shares. The Directors may refuse to register
a transfer of a certificated share unless the instrument
of transfer is: (i) lodged at the registered office of the
Company or any other place as the Board may decide
accompanied by the certificate for the shares to be
transferred and such other evidence as the Directors may
reasonably require to show the right of the transferor
to make the transfer; or (ii) in respect of only one class
of shares.
The Directors may also refuse to register a transfer
of a share (whether certificated or uncertificated),
whether fully paid or not, in favour of more than four
persons jointly.
165
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
As at 31 December 2024 the Company had been
notified of the following interests in the Company’s
ordinary share capital in accordance with DTR 5. It
should be noted that these holdings are likely to have
changed since notified to the Company. However,
notification of any change is not required until an
applicable threshold is crossed.
Shareholders¹
Number of
shares¹
%¹
FMR LLC
11,566,265
8.00
Global Alpha Capital
Management Ltd.
7,194,238
5.03
Liontrust Investment
Partners LLP
7,189,643
4.97
BlackRock, Inc
Not disclosed
<5.00
Heronbridge Investment
Management LLP
7,131,812
4.99
Jupiter Fund
Management Plc
7,113,311
4.97
1.
The names of Shareholders and percentages of issued share capital are
stated as per the notifications received and have not been subject to
independent verification by the Company or any other person. As such,
the above table should not be assumed to be a full and accurate record
of all the interests that are required to be notified to the Company under
the DTRs.
Between 31 December 2024 and 12 March 2025,
BlackRock, Inc made four disclosures in accordance with
DTR 5 as their shareholding repeatedly crossed the 5%
threshold. Their last notification during this time period
confirmed a shareholding of below 5%. No other changes
to the above have been disclosed to the Company in
accordance with DTR 5, between 31 December 2024
and 12 March 2025.
As at 31 December 2024, the Savills plc 1992 Employee
Benefit Trust (the ‘EBT’) held 8,057,705 ordinary shares
and the Savills Rabbi Trust held 821,163 ordinary shares.
Any voting or other similar decisions relating to these
shares held in trust are taken by the trustees, who may
take account of any recommendation of the Company.
The EBT waives its right to receive Savills plc dividends.
For further details of the trusts please refer to Note 32
to the financial statements.
Purchase of own shares
In accordance with the UK Listing Rules, at the AGM on
15 May 2024 Shareholders gave authority for a limited
purchase of Savills shares of up to 10% of the issued
share capital of the Company. During the year, no shares
were purchased under the authority.
The Board proposes to seek Shareholder approval at the
AGM on 14 May 2025 to renew the Company’s authority
to make market purchases of its own ordinary shares of
2.5p each for cancellation, to be held in treasury, sold
for cash or (provided UK Listing Rule requirements
are met) transferred for the purposes of or pursuant
to an employee share scheme. Details of the proposed
resolution are included in the Notice of AGM circulated
to Shareholders with this Annual Report and Accounts
(the ‘AGM Notice’).
Change of control
There are no significant agreements which take
effect, alter or terminate in the event of change of
control of the Company except that under its banking
arrangements, a change of control may trigger an
early repayment obligation.
Articles of Association
The Company’s Articles are governed by relevant
statutes and may be amended by special resolution of
the Shareholders in a general meeting.
Subject to the Articles, UK legislation and any directions
given by resolution in general meeting, the business of
the Company is managed by the Directors.
The Company’s rules about the appointment and
replacement of its Directors are contained in the
Articles. Unless determined by ordinary resolution of
the Company, the number of Directors shall be not
fewer than three and not more than 18. A Director is not
required to hold any shares in the Company by way of
qualification. However, as more fully described on page
140, in accordance with Board policy, the Executive
Directors are expected to build-up and maintain a
shareholding in the Company. The Board may appoint
any person to be a Director and such Director shall hold
office only until the next AGM when he or she shall then
be eligible for reappointment by the Shareholders. The
Articles provide that each Director shall retire from office
at the third AGM after the AGM at which he or she was
last elected. A retiring Director shall be eligible for re-
election. However, in accordance with the UK Corporate
Governance Code, all Directors of the Company are
subject to annual re-election.
Annual General Meeting
The AGM is to be held at 33 Margaret Street, London
W1G 0JD at 12 noon on 14 May 2025; details are
contained in the AGM Notice circulated to Shareholders
with this Annual Report and Accounts.
Half-Year Report
Like many other listed public companies, we no longer
circulate printed Half-Year Reports to Shareholders.
Instead, half-year results statements are published on the
Company’s website. This is consistent with our target to
reduce printing and distribution costs.
Political contributions
The Company made no political contributions during
the year (2023: £nil).
166
Annual Report and Accounts 2024
DIRECTORS’ REPORT
continued
Employees’ policies and involvement
The Directors recognise that the quality, commitment
and motivation of Savills staff is a key element to the
success of the Group; see page 74 for more information
as to employee engagement.
The Group provides regular updates covering
performance, developments and progress to employees
through regular newsletters, video addresses, the
Group’s intranet, social media and through formal and
informal briefings. These arrangements also aim at
ensuring that all of our staff understand our strategy and
to build knowledge on the part of employees of matters
affecting the performance of the Group. The Group
also consults with employees so as to ascertain their
views in relation to decisions which are likely to affect
their interests.
Employees are able to share in the Group’s success
through performance-related profit share schemes
(see page 246 for more details) and for UK employees
(including Executive Directors), share plans which
include a Sharesave Scheme and a Share Incentive Plan
(‘SIP’). The Sharesave Scheme is an HMRC-approved
save-as-you-earn share option scheme which allows
participants to purchase shares out of the proceeds
of a linked savings contract at a price set at the time
of the option grant. Participants may elect to save
up to £500 per month and options may normally be
exercised in the six months following the maturity of
the linked three-year savings contract. The potential for
extending the Sharesave Scheme internationally remains
under consideration. The SIP is also HMRC-approved
and through which participants may make regular
purchases of shares (up to the current statutory limit
of £1,800 per year equating to £150 per month) from
pre-tax income. Shares under the SIP normally vest after
five years and are free from income tax and national
insurance contributions.
Human rights and equal opportunities
We support the principles of the UN Universal
Declaration of Human Rights and the Core Principles of
the International Labour Organization.
It is Group policy to provide employment on an equal
basis irrespective of gender, sexual orientation, marital
or civil partner status, gender reassignment, race,
colour, nationality, ethnic or national origin, religion or
belief, disability or age. In particular, the Group gives
full consideration to applications for employment from
disabled persons. Where existing employees become
disabled, it is the Group’s policy wherever practicable
to provide continuing employment and to provide
training and career development and promotion to
disabled employees.
Whistleblowing
The Group encourages staff to report any concerns
which they feel need to be brought to the attention of
management. Whistleblowing procedures, which are
published on the Group’s intranet site, are available to
staff who are concerned about possible impropriety,
financial or otherwise, and who may wish to ensure that
action is taken without fear of victimisation or reprisal.
Independent auditors
In accordance with section 489 of the Companies Act
2006, a resolution for the reappointment of Ernst &
Young LLP as Auditors of the Company will be proposed
at the forthcoming AGM.
Disclosure of information to the auditor
Each Director confirms that, so far as he/she is aware,
there is no relevant audit information of which the
Company’s auditor is unaware and that each of the
Directors has taken all the steps that he/she ought to
have taken as a Director to make himself/herself aware
of any relevant audit information and to establish that
the Company’s auditor is aware of that information.
This confirmation is given pursuant to section 418 of
the Companies Act 2006 and should be interpreted in
accordance with and subject to that section.
Engagement with UK employees
In accordance with section 172 of the Companies Act
2006 our statement on engagement with UK employees
is on page 74.
Engagement with suppliers, customers
and others in a business relationship with
the Company
In accordance with section 172 of the Companies Act
2006 our statement on engagement with suppliers,
customers and others in a business relationship with
the Company is on pages 103 to 105.
By order of the Board
Chris Lee
Group Legal Director & Company Secretary
12 March 2025
Savills plc
Registered in England No. 2122174
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OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT
OF THE FINANCIAL STATEMENTS
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable United Kingdom law and regulation.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have elected to prepare the Group and parent
Company financial statements in accordance with UK-
adopted international accounting standards (‘IFRSs’).
Under company law the Directors must not approve
the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of
the Group and parent Company and of the profit or
loss of the Group and parent Company for that period.
In preparing the financial statements, the Directors are
required to:
§
select suitable accounting policies in accordance
with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply
them consistently;
§
make judgements and accounting estimates that are
reasonable and prudent;
§
present information, including accounting policies, in
a manner that provides relevant, reliable, comparable
and understandable information;
§
provide additional disclosures when compliance
with the specific requirements in IFRSs is insufficient
to enable users to understand the impact of
particular transactions, other events and conditions
on the Group and Company financial position and
financial performance;
§
in respect of the Group and parent Company financial
statements, state whether UK-adopted international
accounting standards have been followed, subject to
any material departures disclosed and explained in
the financial statements; and
§
prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Group and parent Company will continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Group and parent Company’s transactions
and disclose with reasonable accuracy at any time the
financial position of the Group and parent Company and
enable them to ensure that the financial statements and
the Directors’ Remuneration Report comply with the
Companies Act 2006.
The Directors are also responsible for safeguarding the
assets of the Group and parent Company and hence for
taking reasonable steps for the prevention and detection
of fraud and other irregularities.
Under applicable law and regulations, the Directors
are also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Corporate Governance Statement that comply with that
law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website. Legislation in
the United Kingdom governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
The Directors consider that the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary
for Shareholders to assess the Group and parent
Company’s performance, business model and strategy.
Each of the Directors, whose names and functions
are listed in pages 88 to 90, confirm to the best of
their knowledge:
§
that the consolidated financial statements, prepared
in accordance with UK-adopted international
accounting standards give a true and fair view of the
assets, liabilities, financial position and profit of the
parent Company and undertakings included in the
consolidation taken as a whole; and
§
that the Annual Report, including the Strategic
Report, includes a fair review of the development
and performance of the business and the position
of the Company and undertakings included in the
consolidation taken as a whole, together with a
description of the principal risks and uncertainties
that they face.
In the case of each Director in office at the date the
Directors’ Report is approved:
§
so far as the Director is aware, there is no relevant
audit information of which the Group and parent
Company’s auditor is unaware; and
§
they have taken all the steps that they ought to have
taken as a Director in order to make themselves aware
of any relevant audit information and to establish that
the Group and parent Company’s auditor is aware of
that information.
On behalf of the Board
Mark Ridley
Group Chief Executive
Chris Lee
Group Legal Director & Company Secretary
Forward-looking statements
Forward-looking statements have been made by the
Directors in good faith using information up until the
date on which they approved the Annual Report and
Accounts. Forward-looking statements should be
regarded with caution due to uncertainties in economic
trends and business risks.
12 March 2025
INDEPENDENT AUDITOR’S REPORT
to the members of Savills plc
Opinion
In our opinion:
§
Savills plc’s Group financial statements and Parent Company financial statements (the “financial statements”) give
a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at 31 December 2024 and of
the Group’s profit for the year then ended;
§
the Group financial statements have been properly prepared in accordance with UK adopted international
accounting standards;
§
the Parent Company financial statements have been properly prepared in accordance with Financial Reporting
Standard 101 Reduced Disclosure Framework (‘FRS 101’) as applied in accordance with section 408 of the
Companies Act 2006; and
§
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Savills plc (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for
the year ended 31 December 2024 which comprise:
Group
Parent Company
Consolidated statement of financial position as at
31 December 2024
Statement of financial position as at 31 December 2024
Consolidated income statement for the year then ended
Statement of changes in equity for the year then ended
Consolidated statement of comprehensive income for
the year then ended
Related notes 1 to 22 to the financial statements including
material accounting policies
Consolidated statement of changes in equity for the
year then ended
Consolidated statement of cash flows for the year
then ended
Related notes 1 to 38 to the financial statements,
including material accounting policies
The financial reporting framework that has been applied in the preparation of the Group financial statements is
applicable law and UK adopted international accounting standards and as regards the Parent Company financial
statements, the applicable financial reporting framework applied is FRS 101, as applied in accordance with section
408 of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and parent in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities,
and we have fulfilled our other ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Parent
Company and we remain independent of the Group and the Parent Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group
and Parent Company’s ability to continue to adopt the going concern basis of accounting included the following:
§
We obtained management’s going concern assessment and understood the process undertaken by management to
evaluate the operational and economic impacts of the ongoing macro-economic uncertainty and other downside
scenarios on the Group and to reflect these in the Group’s forecasts.
§
We tested the clerical accuracy of the going concern cash flow models and evaluated the appropriateness of the
methods used to calculate the cash flow forecasts. This included management’s considerations related to forecast
cash flows for climate change impacts, concluding these not be material in the going concern period.
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Annual Report and Accounts 2024
§
We verified that the forecasts used in the going concern model were the latest forecasts approved by the Board.
We confirmed the Group’s forecasts used in the going concern assessment were consistent with forecasts used by
the Group in its accounting estimates, including those used in the annual impairment test.
§
We obtained the cashflow forecasts and covenant calculation for the going concern period which covers 18 months
from the balance sheet date to 30 June 2026. We have tested the assumptions that are most sensitive in each
modelled scenario, being revenues, costs and underlying profits, and tested compliance with the covenants which
focus on adjusted EBITDA. In particular, we compared these primary assumptions to historical trends, including the
business’s performance during significant economic downturns, particularly the 2008-2009 Global Financial Crisis.
We considered whether the assumptions made were reasonable, through our assessment of the impact of the
macro-economic environment and considering whether this contradicted any of the assumed growth.
§
We challenged the appropriateness of each of the key assumptions through agreeing them to supporting evidence
and searching for contradictory evidence, using our understanding of the Group’s business, evidence gained during
the audit and our industry knowledge, including principal and emerging risks that could impact the Group.
§
We assessed management’s stress test on both covenant compliance and liquidity where a severe global economic
downturn analogous to that experienced during the Global Financial Crisis in 2008-2009 was modelled. We
performed our own reverse stress test applying further sensitivities to management’s stress scenario to identify
the point at which the covenants would be breached.
§
We agreed the cash and cash equivalents balances as at 31 December 2024 to third party confirmations and
key terms in the Group’s financing arrangements such as available facility, loan maturity dates and covenants,
by inspecting the underlying agreements. We have obtained and reviewed the new UK revolving credit facility
(‘RCF’) agreement.
§
We read the board minutes to identify any matters that may impact the going concern assessment.
§
We read the going concern disclosures included in the Directors’ Report on page 163 and Note 3 of the
consolidated financial statements on page 183 of the Annual Report in order to assess that the disclosures are
appropriate and in conformity with the reporting standards.
In management’s base case and stress test scenarios, there is sufficient headroom on liquidity and covenants, with the
RCF refinancing having been completed in February 2025. We consider the scenarios as tested in our reverse stress
test are remote.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the Group and Parent Company’s ability to
continue as a going concern for a period to 30 June 2026.
In relation to the Group and Parent Company’s reporting on how they have applied the UK Corporate Governance
Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial
statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant
sections of this report. However, because not all future events or conditions can be predicted, this statement is not a
guarantee as to the Group’s ability to continue as a going concern.
Overview of our audit approach
Audit scope
§
We performed an audit of the complete financial information of six
components and audit procedures on specific balances for a further
five components.
§
We also performed specified procedures on certain accounts on three
additional components.
§
We performed centralised procedures on financial statement line items
as detailed in the “Tailoring the scope” section below.
Key audit matters
§
Revenue recognition, specifically:
–
The risk of fraud in revenue recognition in relation to cut-off in the
transactional advisory business; and
–
The risk of Management override of controls in relation to
revenue recognition.
§
Goodwill impairment.
Materiality
§
Overall Group materiality of £6.1m which represents 5.0% of profit before
tax adjusted for non-recurring items.
169
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
continued
to the members of Savills plc
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 (Revised).
We have followed a risk-based approach when developing our audit approach to obtain sufficient appropriate
audit evidence on which to base our audit opinion. We performed risk assessment procedures, with input from our
component auditors, to identify and assess risks of material misstatement of the Group financial statements and
identified significant accounts and disclosures. When identifying components for which audit work needed to be
performed to respond to the identified risks of material misstatement of the Group financial statements, we considered
our, understanding of the Group and its business environment, the potential impact of climate change, the applicable
financial reporting framework, the Group’s system of internal control at the entity level, the existence of centralised
processes, applications and any relevant internal audit results.
We determined that certain centralised audit procedures would be performed on components of the Group in the
following audit areas: provisions for litigation and claims, restructuring provisions, share based payments, goodwill,
impairment, defined benefit pensions, treasury, property, plant and equipment, intangible assets and certain balances
held by head office entities.
We identified 11 components as individually relevant to the Group due to the identified risks of material misstatement
of the Group financial statements being associated with the reporting components, or materiality or financial size of
the components relative to the Group.
For those 11 individually relevant components, we identified the significant accounts where audit work needed to
be performed at these components by applying professional judgement, having considered the Group significant
accounts on which centralised procedures will be performed, the reasons for identifying the financial reporting
component as an individually relevant component and the size of the component’s account balance relative to the
Group significant financial statement account balance.
We then considered whether the remaining Group significant account balances not yet subject to audit procedures,
in aggregate, could give rise to a risk of material misstatement of the Group financial statements. We selected
3 additional components of the Group to include in our audit scope to address these risks.
Having identified the components for which work will be performed, we determined the scope to assign to
each component.
Of the 14 components selected, we designed and performed audit procedures on the entire financial information of
six components (“full scope components”). For five components, we designed and performed audit procedures on
specific significant financial statement account balances or disclosures of the financial information of the component
(“specific scope components”). For the remaining three components, we performed specified audit procedures to
obtain evidence for one or more relevant assertions over specific significant financial statement account balances.
Our scoping to address the risk of material misstatement for each Key audit matter is set out below.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken
at each of the components by us, as the Group audit engagement team, or by component auditors operating under
our instruction. Of the six full scope components, audit procedures were performed on one of these directly by the
Group audit team. The audit procedures performed on the other five full scope components and the five specific
scope components were performed by component audit teams. Where the work was performed by component
auditors, we determined the appropriate level of involvement to enable us to determine that sufficient audit evidence
had been obtained as a basis for our opinion on the Group as a whole.
The Group audit team continued to follow a programme of planned visits that has been designed to ensure that
the Senior Statutory Auditor, or another Group audit partner, visit key locations during the year. During the current
year’s audit cycle, in person visits were undertaken by the primary audit team to five component teams in the Group
in Germany, Hong Kong, Ireland, Spain and USA. The visit to Hong Kong included in-person meetings with the
component teams from China and Singapore. These visits involved discussing the audit approach with the component
teams and any issues arising from their work, meeting with local management, attending planning or closing meetings
depending on the timing of the visit, and reviewing relevant audit working papers on risk areas. For locations outside
of the UK, that we did not visit in person (four components), our oversight was performed virtually. We supplemented
these visits with further interactions with the component teams through the use of video or teleconferencing facilities,
including virtual meetings with local management. We held virtual planning meetings before the year end and regular
video conference calls were held with each of our component teams from the beginning of February 2025 through
to the full year results announcement in March 2025. The review of relevant audit workpapers was facilitated by the
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Annual Report and Accounts 2024
EY electronic audit platform and screen sharing of work. This allowed appropriate discussions with the component
teams on audit strategy, risk identification and the results of audit procedures performed.
The Group audit team interacted regularly with the component teams where appropriate during various stages of the
audit, reviewed relevant working papers and were responsible for the scope and direction of the audit process. Where
relevant, the section on key audit matters details the level of involvement we had with component auditors to enable
us to determine that sufficient audit evidence had been obtained as a basis for our opinion on the Group as a whole.
This, together with the additional centralised procedures performed at Group level, gave us appropriate evidence for
our opinion on the Group financial statements.
Climate change
Stakeholders are increasingly interested in how climate change will impact Savills. The Group has determined that the
most significant future impacts from climate change on their operations will be from shifts in client preferences for real
estate services incorporating climate considerations and the substitution of existing products or services with lower
emissions options. These are explained on pages 60 to 67 in the required Task Force On Climate Related Financial
Disclosures and on pages 30 to 36 in the principal risks and uncertainties. Climate commitments are explained on
page 39. All of these disclosures form part of the “Other information,” rather than the audited financial statements.
Our procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appear
to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business
and any consequential material impact on its financial statements.
The Group has explained in Note 2 how they have reflected the impact of climate change in their financial statements,
including how this aligns with their commitment to achieve net zero emissions by 2030. There are no significant
judgements or estimates relating to climate change in the notes to the financial statements as the Group own few
properties and therefore have limited exposure in terms of changes in environmental requirements. The Group have
also assessed that transition costs to a low carbon economy will be outweighed by alternative business opportunities.
Our audit effort in considering climate change was focused on the adequacy of the Group’s disclosures in the financial
statements and their conclusion that no issues were identified that would materially impact the carrying values of
intangible assets or have any other material impact on the financial statements. We also challenged the directors’
considerations of climate change in their assessment of going concern and viability and associated disclosures. As
part of this evaluation, we performed our own risk assessment, supported by our climate change internal specialists,
to determine the risks of material misstatement in the financial statements from climate change which needed to be
considered in our audit.
We also challenged the directors’ considerations of climate change risks in their assessment of going concern and
viability and associated disclosures. Where considerations of climate change were relevant to our assessment of going
concern, these are described above.
Based on our work we have not identified the impact of climate change on the financial statements to be a key audit
matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon,
and we do not provide a separate opinion on these matters.
171
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
continued
to the members of Savills plc
Risk
Our response to the risk
Revenue Recognition
Revenue for the year ended
31 December 2024 is £2,404.0m
(2023: £2,238.0m).
There is a risk of fraud in revenue
recognition in relation to cut-off in
the transactional advisory business.
Transactional advisory revenue for
the year ended 31 December 2024
is £870.0m (2023: £772.9m).
Considering the relatively high
proportion of the transactional
revenue recognised close to the
year end, the risk of misstatement
may occur through recognition in
the incorrect period, whether due
to Management override, or error,
due to conditions attached to the
transactional advisory revenue.
There is also a risk that
revenue may be misstated
through Management override by
incorrectly recognising revenue
in order to increase profits
to meet bonus targets, or to
smooth financial results.
Refer to the Audit Committee
Report (page 126); Accounting
policies and Note 8 of the
Consolidated Financial
Statements (page 194).
Understanding management’s process
We obtained an understanding of the Group’s revenue significant classes
of transactions and identified key financial controls but did not test or rely
on controls.
Risk of fraud in revenue recognition in relation to cut-off in the transactional
advisory business
For a sample of transactional advisory revenue transactions recognised
close to the year end (both pre and post year end), we performed the
following procedures:
§
Obtained the underlying contract with the customer and where applicable,
obtained supporting evidence from external sources.
§
Read the contracts to identify the performance obligations to assess
whether revenue had been recognised appropriately.
§
For the same sample, we agreed the revenue to cash receipts, checking
that a receivable or accrued income was recognised where cash was not
received prior to the year end.
Where there were performance obligations existing after exchange of
contracts and these were not satisfied at the year end, but cash was received,
we checked that revenue was appropriately deferred by testing a sample.
On a sample basis, we obtained credit notes issued in January to determine
if they related to revenue that had been recognised in December. Where this
was the case, we gained an understanding of why the credit note was issued
and obtained reissued invoices to verify that revenue was not overstated
in 2024.
Management override
Audit teams at full and specific scope components with significant
revenue streams performed specific procedures to address the risk
of Management override.
We tested all material consolidation adjustments, topside adjustments
and manual journal entries impacting revenue by obtaining supporting
documentation to corroborate the amounts recorded in the current period.
Key observations communicated to the Audit Committee
Based on the procedures performed, we consider revenue recognition to be appropriate for the year ended
31 December 2024. We did not identify any material cut off issues relating to transactional advisory revenue or
any instances of Management override related to revenue recognition in the year.
How we scoped our audit to respond to the risk and involvement with component teams
Risk of fraud in revenue recognition in relation to cut-off in the transactional advisory business (Risk amount – £870.0m)
We performed full (71% of risk amount) and specific scope (14% of risk amount) audit procedures over this risk in
10 locations, which covered 85% of the risk amount. We also performed specified procedures over transactional
revenue in one location, which covered 2.7% of the risk amount.
Total revenue – Management override (Risk amount – £2,404.0m)
We performed full (74% of risk amount) and specific scope (14% of risk amount) audit procedures over this risk in
10 locations which covered 88% of the risk amount. We also performed specified procedures in one location, which
covered an additional 1.2% of the risk amount.
The primary audit team issued Group audit instructions to the component teams which included specific substantive
procedures to address the fraud risks related to cut-off in the transactional business and the risk of Management
override. The primary audit team reviewed the component teams’ key revenue and journal entry workpapers which
were executed in line with the Group audit instructions.
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Annual Report and Accounts 2024
Risk
Our response to the risk
Goodwill impairment
At 31 December 2024 the
carrying value of goodwill is
£459.0m (2023: £443.6m). The
impairment charge recognised
during the year is £1.9m
(2023: £3.9m).
Goodwill is tested annually for
impairment at the Cash Generating
Unit (CGU) level. The recoverable
amount of each CGU is determined
through a value in use calculation.
The value in use calculation is
based on management’s estimate
of the future cash flows of each
underlying CGUs and is most
sensitive to the assumptions around
revenue growth rates, operating
profit margin and discount rate.
Refer to the Audit Committee
Report (page 126); Accounting
policies and Note 16 of the
Consolidated Financial
Statements (page 207).
We understood the methodology applied in management’s impairment
reviews for each of the material CGUs and identified the financial controls
over the process but did not test or rely on controls.
For all material CGUs, we performed the following procedures:
§
We assessed whether the identification of CGUs or groups of CGUs
continues to be appropriate for the purpose of management’s
impairment assessment.
§
We validated the carrying amounts of the net assets subject to
impairment testing to the underlying accounting records, checking
consistency between the assets and liabilities included in the carrying
value and the related cash flows.
§
We tested the integrity and mathematical accuracy of the value in use
models prepared by management to support the recoverable values,
and that the models are appropriate for this purpose and in line with the
requirements of IAS 36
Impairment of Assets
.
§
We agreed forecast cash flows to Board approved budgets and
strategic plans.
§
We performed sensitivity analysis over key assumptions to understand the
impact of reasonably possible changes in assumptions on the impairment
models and conclusions.
§
We considered whether any significant changes occurred between
management’s assessment date and the year-end that would impact
the impairment test conclusion. We did this by reviewing the ongoing
performance of the business and reviewing the inputs to the discount
rate in light of the current macro-economic environment.
§
We considered the appropriateness of the related disclosures in the
consolidated financial statements. We considered whether any reasonably
possible change disclosures were required based upon the headroom within
the sensitivity analysis.
We identified the CGUs presenting a higher risk of impairment based on the
materiality of the allocated goodwill, historical and actual trading performance,
the level of headroom estimated by management and its sensitivity to
changes in key assumptions. For these CGUs, we performed additional audit
procedures, in particular:
§
We tested the key assumptions supporting management’s forecast cash
flows for each CGU, including revenue growth, operating profit margin and
discount rate. We compared management’s forecasts to relevant economic
and property industry forecasts and to the historical performance of the
CGUs. We also engaged our internal valuation specialists to assist with
the evaluation of the discount rates applied in management’s value in
use models.
§
We performed our own sensitivity analysis to understand the impact of
changes to key assumptions, in particular revenue growth, operating profit
margin and discount rate, on the value in use assessment and stress tested
the assessment to conclude on possible impairment.
§
For CGUs where the recoverability of the goodwill was sensitive
to reasonably possible changes in key assumptions, we verified
that appropriate disclosures have been included in the Group
financial statements.
173
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
continued
to the members of Savills plc
Goodwill impairment
continued
Key observations communicated to the Audit Committee
Based on our procedures, we conclude that the recoverable value of the goodwill is less than the carrying value
for the Indonesia CGU and that management’s impairment of £1.9m fully writing off the goodwill balance for that
CGU is appropriate.
The recoverable values of all other CGUs exceed their carrying value and we conclude that there is no impairment
of these assets in the year.
The disclosures prepared by management comply with IAS 36 and appropriately reflect the CGUs where a
reasonable change in assumption could result in an impairment charge.
Management have appropriately highlighted that a reasonably possible change in certain key assumptions in
particular revenue and operating profit margin forecasts could lead to material impairment charges in the US
and Australia.
We concluded appropriate disclosures had been included in the financial statements for the above assumptions.
How we scoped our audit to respond to the risk and involvement with component teams
Goodwill impairment (Risk amount – £459.0m)
We performed centralised procedures over this risk for 16 locations which covered 97% of the risk amount, with
assistance from a number of component teams.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to
influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining
the nature and extent of our audit procedures.
We determined materiality for the Group to be £6.1m (2023: £4.1m), which is 5% (2023: 5%) of profit before tax adjusted for
non-recurring items. We believe that profit before tax adjusted for non-recurring items provides us with the most relevant
performance measure to the stakeholders of the entity and therefore have determined materiality based on this number.
We determined materiality for the Parent Company to be £6.4m (2023: £11.4m), which is 2% of net assets (equity)
(2023: 3% of total assets). We believe that net assets are a key focus for the users of the financial statements of the
Parent Company resulting in the change in the basis upon which we determine materiality for the Parent Company.
Starting basis
IFRS profit before tax: £88.3m
Adjustment for
non-recurring items
Add back:
§
Material transaction-related costs £15.9m
§
Restructuring costs £17.2m
§
Impairment charge £1.9m
Less:
§
Fair value gain on call option £1.0m
Materiality
IFRS profit before tax adjusted for non-recurring items of £122.3m
Materiality of £6.1m (5% of materiality basis)
During the course of our audit, we reassessed materiality which resulted in a small increase from our initial materiality
of £5.8m to the final materiality of £6.1m. We have audited using the final materiality of £6.1m.
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Annual Report and Accounts 2024
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately
low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our
judgement was that performance materiality was 50% (2023: 50%) of our planning materiality, namely £3.0m (2023:
£2.0m). We have set performance materiality at this percentage due to the risk of material misstatements occurring within
the financial statements, including our understanding of the control environment and history of past errors identified.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement
accounts is undertaken based on a percentage of total performance materiality. The performance materiality set for
each component is based on the relative scale and risk of the component to the Group as a whole and our assessment
of the risk of misstatement at that component. In the current year, the range of performance materiality allocated to
components was £0.6m to £1.8m (2023: £0.4m to £1.4m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of
£0.3m (2023: £0.2m), which is set at 5% of planning materiality, as well as differences below that threshold that, in our
view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above
and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the Annual Report including the Overview, Strategic
Report, Governance, Shareholder information and the Appendices set out on pages 285 and 286, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other information
contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of the other information,
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance
with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
§
the information given in the strategic report and the directors’ report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
§
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained
in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us
to report to you if, in our opinion:
§
adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have
not been received from branches not visited by us; or
§
the Parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not
in agreement with the accounting records and returns; or
§
certain disclosures of directors’ remuneration specified by law are not made; or
§
we have not received all the information and explanations we require for our audit.
175
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
continued
to the members of Savills plc
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Group and company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained
during the audit:
§
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 163;
§
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why
the period is appropriate set out on page 163;
§
Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation
and meets its liabilities set out on page 163;
§
Directors’ statement on fair, balanced and understandable set out on page 167;
§
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 31;
§
The section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems set out on page 128; and
§
The section describing the work of the audit committee set out on page 120 to 128.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 167, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Parent Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the company and management.
§
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and
determined that the most significant are those relevant to the reporting framework (UK adopted international
accounting standards, the Companies Act 2006 and UK Corporate Governance Code) and the relevant international
tax laws and regulations. In addition, we concluded that there are certain significant laws and regulations which may
have an effect on the determination of the amounts and disclosures in the financial statements being the Listing
Rules of the UK Listing Authority, UK financial services legislation, those laws and regulations relating to employee
matters and pensions legislation, and data protection requirements in the jurisdictions in which the Group operates.
§
We understood how Savills plc is complying with those frameworks through enquiry with management, internal
audit, those responsible for legal and compliance procedures and the company secretary. We corroborated our
enquiries through our review of board minutes and papers provided to the board and the Audit Committee,
including internal audit reports, and our attendance at the meetings of the Audit Committee, as well as
consideration of the results of our audit procedures across the Group.
176
Annual Report and Accounts 2024
§
We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud
might occur by meeting with management from various parts of the business to understand where it considered
there was susceptibility to fraud. We also considered performance targets impacting bonus arrangements, and the
risk of management override of controls. We engaged our forensics specialists in assisting our assessment of the
susceptibility of the Group’s financial statements to fraud and designed specific responses to the risk which were
carried out by our full and specific scope locations. We considered the programmes and controls that the Group
has established to prevent, deter and detect fraud, and how senior management monitors those programmes and
controls. The risk in revenue for cut off in the transactional advisory business and management override of controls
in all revenue streams was considered to be higher and we performed audit procedures to address these fraud risks.
These procedures were designed to provide reasonable assurance that the financial statements were free from
material fraud or error.
§
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and
regulations. Our procedures involved:
–
Enquiry of Group management, divisional management, internal audit, those charged with governance and
legal counsel regarding their knowledge and any non-compliance or potential non-compliance with laws and
regulations of fraud that could affect the financial statements;
–
Reading minutes of meetings of those charged with governance;
–
Assessment of matters reported to the Audit Committee and the results of Management’s investigation of such
matters, involving the use of specialists where necessary; and
–
Journal entry testing, with a focus on revenue journals and journals indicating large or unusual transactions close
to the year end based on our understanding of the business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters we are required to address
Following the recommendation from the audit committee, we were appointed by the company on 19 May 2021 to audit
the financial statements for the year ending 31 December 2021 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments is 4 years, covering
the years ending 2021 to 2024.
The audit opinion is consistent with the additional report to the audit committee.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Christabel Cowling (Senior statutory auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
12 March 2025
177
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Notes
2024
£m
2023
£m
Revenue
7.1 and
8
Employee benefits expense
11.1
(1,581.4 )
(1,496.3 )
Depreciation
17 and 18.1
(70.2 )
(69.6 )
Amortisation of intangible assets
16
(16.1 )
(15.8 )
Impairment of goodwill
16
(1.9 )
(3.9 )
Other operating expenses
9
(661.3 )
(619.5 )
Increase in provision for expected credit loss
(8.3 )
(1.8 )
Other net gains
9
Share of post-tax profit from joint ventures and associates
19
Operating profit
9
Finance income
12
Finance costs
12
(43.0 )
(38.5 )
Net finance income
12
Profit before income tax
Income tax expense
13.1 and 13.2
(35.4 )
(15.9 )
Profit for the year
Attributable to:
Owners of the parent
Non-controlling interests
(0.7 )
(1.3 )
Earnings per share
Basic earnings per share
14.1
Diluted earnings per share
14.1
Supplementary income statement information
Reconciliation to underlying profit before income tax
Profit before income tax
– Restructuring and transaction-related costs
10
– Other underlying adjustments
10
Underlying profit before income tax
7.1 and 10
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2024
178
Annual Report and Accounts 2024
Notes
2024
£m
2023
£m
Profit for the year
Other comprehensive income/(loss)
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit pension scheme
and employee benefit obligations
(24.7 )
Changes in fair value of financial assets held at FVOCI
(0.7 )
Tax on other items that will not be reclassified
13.3
(2.9 )
Total items that will not be reclassified to profit or loss
(15.7 )
Items that may be reclassified subsequently to profit or loss:
Currency translation differences
(5.7 )
(27.3 )
Total items that may be reclassified subsequently to profit or loss
(5.7 )
(27.3 )
Other comprehensive income/(loss) for the year
(43.0 )
Total comprehensive income/(loss) for the year
(3.5 )
Total comprehensive income/(loss) attributable to:
Owners of the parent
(1.4 )
Non-controlling interests
(1.8 )
(2.1 )
(3.5 )
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
179
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Notes
2024
£m
2023
restated*
£m
Assets: Non-current assets
Property, plant and equipment
17
Right-of-use assets
18.1
Goodwill
16
Intangible assets
16
Investments in joint ventures and associates
19
Deferred income tax assets
13.5
Financial assets at fair value through other comprehensive income (‘FVOCI’)
20
Financial assets at fair value through profit and loss (‘FVPL’)
20
Defined benefit pension surplus
27
Contract related assets
8.2
Trade and other receivables
21
Assets: Current assets
Contract assets
8.2
Trade and other receivables*
21
Income tax receivable*
Derivative financial instruments
Cash and cash equivalents*†
22
Liabilities: Current liabilities
Borrowings
24
Overdrafts in notional pooling arrangement†
22.1
Lease liabilities
18.2
Derivative financial instruments
Contract liabilities
8.2
Trade and other payables*
23
Income tax liabilities
Employee benefit obligations
26
Provisions
25
Net current assets
Total assets less current liabilities
Liabilities: Non-current liabilities
Borrowings
24
Lease liabilities
18.2
Derivative financial instruments
Other payables
23
Retirement and employee benefit obligations
26, 27
Provisions
25
Deferred income tax liabilities
13.5
Net assets
Equity:
Share capital
30
Share premium
30
Other reserves
31
Retained earnings
31
Equity attributable to owners of the parent
Non-controlling interests
29
Total equity
*
See Note 28 for details of prior year restatement.
†
Included within cash and cash equivalents are cash balances of £200.2 m (31 December 2023: £193.3 m) that are operated within a notional cash pooling
arrangement together with overdraft balances of £199.3 m (31 December 2023: £192.3 m) presented above in current liabilities. See Note 22.1 for further details.
on 12 March 2025 and were signed on its behalf by:
J J M Ridley
Savills plc
Registered in England No. 2122174
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2024
180
Annual Report and Accounts 2024
Attributable to owners of the parent
Non-
controlling
interests
£m
Total
equity
£m
Share
capital
£m
Share
premium
£m
Other
reserves*
£m
Retained
earnings**
£m
Total
£m
Balance at 1 January 2024
Profit for the year
(0.7 )
Other comprehensive income/(loss):
Remeasurement of defined benefit pension
scheme and employee benefit obligations
Changes in fair value of financial assets at FVOCI
(0.7 )
(0.7 )
(0.7 )
Tax on items taken to other comprehensive
income/(loss)
13.3
(2.9 )
(2.9 )
(2.9 )
Currency translation differences
(4.6 )
(4.6 )
(1.1 )
(5.7 )
Total comprehensive (loss)/income for the year
(5.3 )
(1.8 )
Employee share option scheme:
– Value of services provided
32
– Tax on employee share option schemes
13.4
Issue of share capital
Purchase of treasury shares
(22.9 )
(22.9 )
(22.9 )
Dividends
15
(31.2 )
(31.2 )
(2.6 )
(33.8 )
Transfer between reserves
29
(1.3 )
(1.2 )
Transactions with non-controlling interests
29
Fair value of derivative financial instruments
20
(8.4 )
(8.4 )
(8.4 )
Acquisitions of subsidiaries
28
(6.8 )
(6.8 )
Balance at 31 December 2024
Attributable to owners of the parent
Non-
controlling
interests
£m
Total
equity
£m
Share
capital
£m
Share
premium
£m
Other
reserves*
£m
Retained
earnings**
£m
Total
£m
Balance at 1 January 2023
Profit for the year
(1.3 )
Other comprehensive income/(loss):
Remeasurement of defined benefit pension
scheme and employee benefit obligations
(24.6 )
(24.6 )
(0.1 )
(24.7 )
Changes in fair value of financial assets at FVOCI
Tax on items taken to other comprehensive
income/(loss)
13.3
Currency translation differences
(26.6 )
(26.6 )
(0.7 )
(27.3 )
Total comprehensive (loss)/income for the year
(26.0 )
(1.4 )
(2.1 )
(3.5 )
Employee share option scheme:
– Value of services provided
32
– Tax on employee share option schemes
13.4
Tax on other items taken to reserves
13.4
(0.4 )
(0.4 )
(0.4 )
Purchase of treasury shares
(26.3 )
(26.3 )
(26.3 )
Dividends
15
(48.8 )
(48.8 )
(2.2 )
(51.0 )
Transfer between reserves
(9.7 )
(2.0 )
Fair value of derivative financial instrument
(0.6 )
(0.6 )
(0.6 )
Balance at 31 December 2023
*
Included within other reserves on the face of the statement of financial position are the capital redemption reserve, merger relief reserve, foreign exchange
reserve and revaluation reserve as disclosed in Note 31.
**
Included within retained earnings on the face of the statement of financial position are treasury shares, share-based payments reserve and the profit and loss
account as disclosed in Note 31.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2024
181
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Notes
2024
£m
2023
restated*
£m
Cash flows from operating activities
Cash generated from operations
34
Interest received
Interest paid
(42.0 )
(33.3 )
Income tax paid
(33.9 )
(37.7 )
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
Proceeds from sale of financial assets held at FVOCI and FVPL
Proceeds from sale of interests in joint ventures
Dividends received from joint ventures
19
Dividends received from associates
19
Dividends received from other parties
Repayment of loans by joint ventures
Repayment of loans by associates
Loans to associates
(0.4 )
Loans to other parties
(0.5 )
(2.5 )
Acquisition of subsidiaries, net of cash and overdrafts acquired
28
(2.6 )
(8.9 )
Deferred consideration paid in relation to prior year acquisitions
(0.9 )
(1.9 )
Sublease receipts
Purchase of property, plant and equipment
17
(11.7 )
(17.4 )
Purchase of intangible assets
16
(9.1 )
(5.5 )
Purchase of investment in joint ventures
19
(0.3 )
(0.5 )
Purchase of financial assets held at FVOCI and FVPL
(6.1 )
(6.7 )
Net cash used in investing activities
(20.7 )
(21.8 )
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from transaction with non-controlling interest
Payments to non-controlling interest holders
(5.4 )
Proceeds from borrowings
24
Repayments of borrowings
24
(87.4 )
(109.9 )
Principal elements of lease payments
18.2
(59.6 )
(54.7 )
Purchase of treasury shares
(22.9 )
(26.3 )
Dividends paid
15, 29
(33.8 )
(51.0 )
Net cash used in financing activities
(112.5 )
(136.2 )
Net increase/(decrease) in cash, cash equivalents and bank overdrafts
(139.2 )
Cash, cash equivalents and bank overdrafts at beginning of year
Effect of exchange rate fluctuations on cash and cash equivalents held
(8.1 )
(15.0 )
Cash, cash equivalents and bank overdrafts at end of year
22
*
See Note 28 for details of prior year restatement.
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2024
182
Annual Report and Accounts 2024
The Group operates through a network of offices in the UK, Europe, Asia Pacific, North America, Africa and the
These consolidated financial statements were approved for issue by the Board of Directors on 12 March 2025.
prepared on a going concern basis (refer to Note 3) and under the historical cost convention as modified by the
revaluation of loans receivable, equity investments held at FVOCI, financial assets held at FVPL and derivative financial
instruments held at fair value.
In preparing the financial statements management has considered the impact of climate change, taking into account
the relevant disclosures in the Strategic Report, including those made in accordance with the recommendations of
the Taskforce on Climate-related Financial Disclosure. These considerations included the limited exposure in terms
of tangible assets, including in our investment management business where we do not own the properties, as well
as our current assessment that the transition costs to a low carbon economy will be outweighed by alternative
business opportunities, therefore not impacting the recoverability of our intangible assets. On this basis, we
concluded that climate change did not have a material impact on the financial reporting judgements and estimates,
consistent with the assessment that this is not expected to have a significant impact on the Group’s going concern
The Group’s business activities, together with the factors likely to affect its future development, performance and
position are set out in the Strategic Report. The financial position of the Group, its cash flows and liquidity position
are described in the Chief Financial Officer’s Review, with details of the Group’s treasury activities and exposure to
financial risk included in Note 6 to the consolidated financial statements.
The Group has prepared its going concern assessment for the period to the end of June 2026. As in prior years, the
Board undertook a strategic business review in the current year, taking account of the Group’s current position and
prospects, the Group’s strategic plan, and the Group’s principal risks and the management of those risks, as detailed
in the Annual Report and the Board’s risk appetite as detailed in the Strategic Report. Sensitivity analysis was also
undertaken, including financing projections, to flex the financial forecasts under several severe downside scenarios,
which involved applying different assumptions to the underlying forecasted revenues, costs and underlying profits
both individually and in aggregate. These scenarios assess the potential impact from several macro-economic risks,
including a severe global economic downturn analogous to that experienced during the Global Financial Crisis in
2008/09. The results of this sensitivity analysis showed that the Group would retain liquidity and maintain significant
available facility and covenant headroom to be able to withstand the impact of such scenarios over the period of the
financial forecast, as a result of the resilience and diversity of the Group, underpinned by a strong balance sheet.
Based on the Group’s positive net cash position of £176.3m (cash and cash equivalents less overdrafts in notional
pooling arrangements and borrowings) and undrawn £360.0m revolving credit facility at the year end, as described
in the Chief Financial Officer’s review, combined with the assessment explained above, the Directors have formed the
judgement at the time of approving the financial statements, that there is a reasonable expectation that the Group has
adequate resources to continue as a going concern for a period of at least 12 months from the date of the approval of
the financial statements until at least June 2026. For this reason, they continue to adopt the going concern basis of
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
183
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
184
The material accounting policies applied in the preparation of these consolidated financial statements are set out
below. Other material accounting policies applicable to a particular area are disclosed in the most relevant note. They
can be identified by the following symbol:
.
These policies have been consistently applied to all the years presented.
The consolidated financial statements include those of the Company and its subsidiary undertakings, together with
the Group’s share of results of its associates and joint ventures.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the Group.
Intercompany transactions, balances and unrealised gains and losses on transactions between Group companies
are eliminated. Profits and losses resulting from intercompany transactions that are recognised in assets are also
eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with
the policies adopted by the Group.
(b) Acquisition of subsidiaries
The Group applies the acquisition method of accounting to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the
equity interests issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-
controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling
interest’s proportionate share of the recognised amounts of the acquiree’s identifiable net assets.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date.
Contingent consideration only applies to situations where contingent payments are not dependent on future
employment of vendors. Subsequent changes to the fair value of the contingent consideration that is deemed to
be an asset or liability is recognised in profit or loss. Contingent consideration that is classified as equity is not
remeasured, and its subsequent settlement is accounted for within equity. Payments dependent on future employment
are expensed to the income statement over the relevant period of employment as required by IFRS 3 (revised).
Acquisition-related costs are expensed as incurred.
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity
transactions, that is, as transactions with the owners in their capacity as owners. The difference between fair value of
any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded
Investments in associates and joint ventures are accounted for using the equity method of accounting.
Under the equity method, the investment is initially recognised at cost, and the carrying amount is increased or
decreased to recognise the investor’s share of the profit or loss of the investee after the date of acquisition. The
Group’s investment in associates includes goodwill (net of any accumulated impairment loss) identified on acquisition
(see Note 19).
The Group’s share of its associates’ and joint ventures’ post-acquisition profits or losses is recognised in the income
statement with a corresponding adjustment to the carrying amount of the investment. Dividends received or
receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
185
When the Group’s share of losses in an associate or joint venture equals or exceeds its interest in the associate or
joint venture (which includes any long-term interests that, in substance, form part of the Group’s net investment in
the associate or joint venture) the Group does not recognise further losses unless it has incurred legal or constructive
obligations or made payments on behalf of the associate or joint venture.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent
of the Group’s interest in the associate or joint venture. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of associates and joint ventures have
been changed where necessary to ensure consistency with the policies adopted by the Group.
The carrying amount of associates and joint ventures is tested for impairment in accordance with the policy described
in Note 16.
(f) Investment management funds
The Investment Management business enters into strategic partnerships and mandates to provide asset management
or investment advisory services to external clients, and in certain instances also has an interest in the fund general
partner or in co-investment schemes (the Savills Investment Management funds). In its role as fund manager, the
Investment Management business is considered by management to be acting as an agent which does not have control
Items included in the financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash
flow hedges.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair value gain or loss
and are recognised in the income statement, except for financial assets held at FVOCI, which are recognised in other
comprehensive income. Non-monetary items carried at historical cost are reported using the exchange rate at the date
of the transaction.
(c) Group entities
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation,
are translated to the Group’s presentational currency at foreign exchange rates ruling at the reporting date. Exchange
differences arising from this translation of foreign operations are recognised in other comprehensive income and taken
to the foreign exchange reserve.
The income and expenses of foreign operations are translated at an average rate for the year where this rate
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
186
4. Material accounting policies that apply to the consolidated financial statements
continued
4.3 Adoption of standards, amendments and interpretations to standards
Standards, amendments and interpretations endorsed by the UK and mandatorily effective for the financial year
beginning 1 January 2024, which the Group has applied for the first time in its financial statements include:
§
Supplier Finance Arrangements
– Amendments to IAS 7 and IFRS 7 require additional disclosures with respect to
supplier finance arrangements that exist within the Group, including the terms and conditions of the arrangements,
the value of such liabilities presented in trade and other payables and ranges of payment due dates. The Group
has provided new disclosures for liabilities under supplier finance arrangements in Note 23.1. This amendment does
not have a material impact on the amounts recognised in prior years and is not expected to significantly affect the
current or future years.
§
Finance (No. 2) Bill 2023, that includes Pillar Two legislation, was substantively enacted in the UK on 20 June
2023, to apply for periods commencing 1 January 2024. Pillar Two Model Rules (Amendments to IAS 12) as issued
in May 2023, was adopted as from that date. The amendments to IAS 12 introduce a temporary mandatory relief
from accounting for deferred tax that arise from legislation implementing OECD Pillar Two. As required by the
amendments to IAS 12 the Group has applied the exception to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its GloBE effective tax
rate per jurisdiction and the 15% minimum rate. Management’s assessment of the Group’s potential exposure to
additional top–up tax based on current forecasts has identified some entities within the Group that may have an
effective tax rate below 15% however operations in these entities are not significant and the value of the additional
top-up tax would not be material for the Group. Due to the complexities in applying the legislation and calculating
GloBE income, the quantitative impact of the enacted or substantively enacted legislation is not yet reasonably
estimable. Therefore, even for those entities with an accounting effective tax rate above 15%, there might still be
Pillar Two tax implications.
All other standards, amendments and interpretations mandatorily effective for the financial year beginning 1 January
2024 are not relevant or considered to have a significant impact on the Group and its financial statements.
There are no standards, amendments and interpretations to standards that are not yet effective that would be
expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future
transactions with the exception of:
§
IFRS 18 Presentation and Disclosure in Financial Statements: Management is currently assessing the detailed
implications of applying the new standard on the Group’s consolidated financial statements. The Group will apply
the new standard from its mandatory effective date of 1 January 2027 subject to UK endorsement. Retrospective
application is required, and so the comparative information for the financial year ended 31 December 2026 will be
The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and
assumptions. It also requires management to exercise its judgement in the process of applying our accounting policies.
We continually evaluate our estimates, assumptions and judgements based on available information and experience.
As the use of estimates is inherent in financial reporting, actual results could differ from these estimates.
Our critical accounting estimates are those estimates that carry a significant risk of resulting in a material adjustment
to the carrying amount of assets and liabilities within the next financial year. Significant judgements are those made by
management in applying our material accounting policies that have a material impact on the amounts presented in the
financial statements.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
187
Our critical accounting estimates and significant judgements are described in the following notes to the financial
statements. They can be identified by the following symbol
.
Note |
Critical estimate |
Significant judgement |
|
Valuation of defined benefit pension assets and liabilities |
27 |
||
Goodwill impairment |
16 |
||
Debtor recoverability |
21 |
||
Classification of non-underlying terms* |
10 |
||
Determination of lease terms |
18 |
*
The Group’s activities expose it to a variety of financial risks. The Group has in place a risk management programme
that seeks to limit the adverse effects on the financial performance of the Group.
The Group treasury function is responsible for implementing risk management policies applied by the Group.
The Group treasury function has a policy and procedures manual that sets out specific guidelines on financial risks
and the use of financial instruments to manage these.
The Group operates internationally and is exposed to foreign exchange risks primarily with respect to the euro,
Hong Kong dollar and US dollar. Foreign exchange risk arises from future commercial transactions, recognised
assets and liabilities and net investments in foreign operations. When there is a material committed foreign currency
exposure the foreign exchange risk will be hedged. The Group may finance some overseas investments through the
use of foreign currency borrowings. The Group does not actively seek to hedge risks arising from foreign currency
translations due to their non-cash nature and the high costs associated with such hedging.
The sensitivity analysis has been prepared for the major currencies to which the Group is exposed. Recent historical
movements in these currencies have been considered and it has been concluded that a 5–10% movement in rates is
a reasonable benchmark.
For the years ended 31 December, if the average currency conversion rates against sterling for the year had changed
with all other variables held constant, the Group post-tax profit for the year would have increased or decreased as
shown below:
| Movement of currency against sterling |
||||
£m |
-10.0% |
-5.0% |
+5.0% |
+10.0% |
2024 |
||||
Estimated impact on post-tax profit |
||||
Euro |
0.7 |
0.4 |
(0.4) |
(0.9) |
Hong Kong dollar |
(0.1) |
(0.1) |
0.1 |
0.1 |
US dollar |
(0.5) |
(0.3) |
0.3 |
0.6 |
Chinese renminbi |
(0.2) |
(0.1) |
0.1 |
0.2 |
Estimated impact on components of equity |
||||
Euro |
3.2 |
1.7 |
(1.8) |
(3.9) |
Hong Kong dollar |
(6.7) |
(3.5) |
3.9 |
8.2 |
US dollar |
(18.5) |
(9.7) |
10.7 |
22.6 |
Chinese renminbi |
(3.9) |
(2.1) |
2.3 |
4.8 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
188
6. Financial risk management
continued
6.1 Foreign exchange risk
continued
| Movement of currency against sterling | ||||
£m | -10.0% | -5.0% | +5.0% | +10.0% |
2023 | ||||
Estimated impact on post-tax profit | ||||
Euro | 0.6 | 0.3 | (0.4) | (0.7) |
Hong Kong dollar | (0.3) | (0.2) | 0.2 | 0.4 |
US dollar | 0.8 | 0.4 | (0.5) | (1.0) |
Chinese renminbi | (0.5) | (0.3) | 0.3 | 0.6 |
Estimated impact on components of equity | ||||
Euro | 0.9 | 0.5 | (0.5) | (1.1) |
Hong Kong dollar | (7.8) | (4.1) | 4.5 | 9.6 |
US dollar | (17.3) | (9.1) | 10.0 | 21.1 |
Chinese renminbi | (4.4) | (2.3) | 2.5 | 5.4 |
The Group has both interest-bearing assets and liabilities. The Group finances its operations through a mixture of
retained profits and bank borrowings, at both fixed and floating interest rates. Borrowings issued at variable rates
expose the Group cash flow to interest rate risk, which is partially offset by cash held at variable rates. Borrowings
issued at fixed rates expose the Group to fair value interest rate risk. Group policy is to maintain at least 70% of its
borrowings in fixed rate instruments.
For the year ended 31 December 2024, if the average interest rate for the year had changed with all other variables
held constant, the Group’s post-tax profit for the year and equity would have increased or decreased as shown below:
| Increase in interest rates | ||||
£m | +0.5% | +1.0% | +1.5% | +2.0% |
2024 | ||||
Estimated impact on post-tax profit and equity | 1.0 | 2.0 | 3.0 | 4.0 |
2023 | ||||
Estimated impact on post-tax profit and equity | 1.1 | 2.1 | 3.2 | 4.2 |
| Decrease in interest rates | ||||
£m | -0.5% | -1.0% | -1.5% | -2.0% |
2024 | ||||
Estimated impact on post-tax profit and equity | (1.0) | (2.0) | (3.0) | (3.9) |
2023 | ||||
Estimated impact on post-tax profit and equity | (1.1) | (2.1) | (3.2) | (4.2) |
The rationale behind the 2.0% sensitivity analysis is based upon historic trends in interest rate movements and the
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
189
Credit risk arises from cash and cash equivalents, equity investments, loans receivables, debt-like financial instruments
and derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to
clients, including outstanding receivables and committed transactions.
The Group has policies that require appropriate credit checks on potential customers before engaging with them.
A risk control framework is used to assess the credit quality of clients, taking into account financial position, past
experience and other factors. There were no material individual trade receivable balances as at 31 December 2024.
Refer to Note 21 for information on the credit quality of trade and other receivables and the maximum exposure to
credit risk arising on outstanding receivables from clients.
Individual risk limits for banks and financial institutions are set based on external ratings and in accordance with
limits set by the Board. The utilisation of credit limits is regularly monitored. As at the reporting date, no significant
credit risk existed in relation to banking counterparties. No credit limits were exceeded during the reporting year,
and management does not expect any losses from non-performance by these counterparties.
The table below shows the Group’s cash and cash equivalents, overdrafts in notional pooling arrangements and bank
overdrafts, as per the statement of cash flows, split by counterparty ratings as at 31 December:
2023 |
||
2024 |
restated* |
|
Counterparty rating (SP& long-term ratings) |
£m |
£m |
AA- |
11.6 |
37.2 |
A+ |
182.3 |
152.0 |
A |
63.7 |
45.1 |
A- |
29.5 |
29.3 |
BBB+ |
3.9 |
13.7 |
BBB or below |
36.4 |
32.8 |
Total |
327.4 |
310.1 |
*
The Group maintains appropriate committed facilities to ensure the Group has sufficient funds available for operations
and expansion. The Group prepares an annual funding plan approved by the Board which sets out the Group’s
expected financing requirements for the next 12 months.
Management monitors rolling forecasts of the Group’s liquidity reserve comprising undrawn borrowing facilities
(Note 24) and cash and cash equivalents (Note 22 and Note 22.1) on the basis of expected cash flow. This is carried
out at local level in the operating companies of the Group in accordance with Group practice as well as on a Group
consolidated basis.
The table below analyses the Group’s financial liabilities and net-settled derivative financial liabilities into relevant
maturity Groupings based on the remaining period from the reporting date to the contractual maturity date.
Total |
||||||
contractual |
||||||
Less than |
Between |
Between |
Over |
undiscounted |
Carrying |
|
£m |
a year |
1 and 2 years |
2 and 5 years |
5 years |
cash flows |
Values |
2024 |
||||||
Borrowings |
45.6 |
3.8 |
68.7 |
60.6 |
178.7 |
160.9 |
Overdrafts in notional pooling arrangement |
199.3 |
– |
– |
– |
199.3 |
199.3 |
Lease liabilities |
59.1 |
63.5 |
108.7 |
41.2 |
272.5 |
233.1 |
Derivative financial instruments |
1.3 |
1.0 |
5.4 |
14.2 |
21.9 |
13.9 |
Trade and other payables |
347.5 |
5.0 |
4.1 |
– |
356.6 |
355.2 |
652.8 |
73.3 |
186.9 |
116.0 |
1,029.0 |
962.4 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
190
6. Financial risk management
continued
6.4 Liquidity risk
continued
Total | ||||||
contractual | ||||||
Less than | Between | Between | Over | undiscounted | Carrying | |
£m | a year | 1 and 2 years | 2 and 5 years | 5 years | cash flows | Values |
2023 restated* | ||||||
Borrowings | 12.6 | 34.4 | 70.3 | 62.7 | 180.0 | 157.2 |
Overdrafts in notional pooling arrangement | 192.3 | – | – | – | 192.3 | 192.3 |
Lease liabilities | 61.2 | 65.0 | 111.1 | 58.5 | 295.8 | 254.2 |
Derivative financial instruments | 2.5 | – | 3.2 | – | 5.7 | 5.7 |
Trade and other payables | 291.7 | 4.7 | 3.3 | 0.1 | 299.8 | 298.5 |
560.3 | 104.1 | 187.9 | 121.3 | 973.6 | 907.9 |
*
2023 has been restated due to the prior year restatement included in Note 28 as well as a recalculation of the Group’s financial liabilities included within
The Group’s objectives when managing capital are:
§
to safeguard the Group’s ability to provide returns for Shareholders and benefits for other stakeholders; and
§
to maintain an optimal capital structure to reduce the cost of capital.
The Group’s overall strategy remains unchanged from 2023.
Savills plc is not subject to any externally-imposed capital requirements, with the exception of its regulated entities
within the Savills Investment Management Group and its FCA (Financial Conduct Authority) regulated entity, Savills
Capital Advisors Limited, in the UK. All regulated entities complied with the relevant capital requirements for the
year ended 31 December 2024. The Savills Investment Management Group has regulated entities in the UK, Jersey,
Luxembourg, Germany, Italy, Japan, Singapore and Australia. For more information on Savills Investment Management
Group’s regulated entities and regulatory requirements, please visit www.savillsim.com.
In order to maintain an optimal capital structure, the Group may adjust the amount of dividends paid to Shareholders,
return capital to Shareholders, issue new shares or sell assets to reduce debt.
The Board has put in place a distribution policy which takes into account the degree of maintainability of the Group’s
different profit streams and the Group’s overall exposure to cyclical Transaction Advisory profits, as well as the
requirement to maintain a certain level of cash resources for working capital and corporate development purposes.
The Board will recommend an ordinary dividend broadly reflecting the profits derived from the Group’s less volatile
businesses. In addition, when profits from the cyclical Transaction Advisory business are strong, the Board will consider
and, if appropriate, recommend the payment of a supplemental dividend alongside the final ordinary dividend.
The value of any such supplemental dividend will vary depending on the performance of the Group’s Transaction
Advisory business and the Group’s anticipated working capital and corporate development requirements through
the cycle. It is intended that, in normal circumstances, the combined value of the ordinary and supplemental dividends
declared in respect of any year are covered at least 1.5 times by retained earnings and/or at least 2.0 times by
underlying profits after taxation. The Group complied with this policy throughout the year.
The Group’s policy is primarily to borrow centrally, if required, to meet anticipated funding requirements. These
borrowings, together with cash generated from operations, are then on-lent or contributed as equity to certain
subsidiaries. The Board of Directors monitors a number of debt measures on a rolling forward 12-month basis
including: gross cash by location; gross debt by location; cash subject to restrictions; total debt servicing cost
to operating profit; gross borrowings as a percentage of EBITDA (earnings before interest, tax, depreciation and
amortisation); and forecast headroom against available facilities. These internal measures indicate the levels of debt
that the Group has and are closely monitored to ensure compliance with banking covenants and to confirm that the
Group has sufficient unused facilities. The Group complied with all banking covenants throughout the year and met
all internal counterparty exposure limits set by the Board.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
191
The capital structure is as follows:
2023 |
||
2024 |
restated* |
|
£m |
£m |
|
Equity |
777.8 |
752.8 |
Cash and cash equivalents |
536.5 |
506.6 |
Overdrafts in notional pooling arrangement |
(199.3) |
(192.3) |
Bank overdrafts |
(9.8) |
(4.2) |
Borrowings (gross of transaction costs) |
(151.5) |
(153.8) |
Cash and cash equivalents net of gross borrowings |
175.9 |
156.3 |
*
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Group Executive Board (‘GEB’).
A business segment is a group of assets and operations engaged in providing products or services that are subject
to risks and returns that are different from those of other business segments. A geographical segment is engaged in
providing products or services within a particular economic environment that is subject to risks and returns that are
different from those of segments operating in other economic environments.
The GEB primarily manages the business based on the geographic location in which the Group operates, with the
Investment Management business being managed separately. As the Group is strongly affected by both differences
in the types of services it provides and the geographical areas in which it operates, the matrix approach of disclosing
both the business and geographical segments format is used.
Revenues and expenses are allocated to segments on the basis that they are directly attributable or the relevant
portion can be allocated on a reasonable basis.
The operating segments are identified as the following regions: the UK, Continental Europe and the Middle East
(‘CEME’), Asia Pacific and North America. The Savills Investment Management business is also considered a separate
operating segment. The reportable operating segments derive their revenue primarily from property-related services.
Within the UK and Asia Pacific, both commercial and residential services are provided. Other segments are largely
commercial-based.
Refer to the Group overview on page 5 and the segmental reviews on pages 22 to 26 for further information on
revenue sources. The GEB also reviews the business with reference to the nature of the services in each region.
Therefore, the Group has presented its segment analysis below in a matrix with the primary operating segments
based on regions in which the Group operates.
The GEB assesses the performance of operating segments based on a measure of underlying profit before tax
which adjusts reported pre-tax profit by profit/(loss) on disposals, share-based payment adjustment, significant
restructuring costs, significant transaction-related costs, amortisation and impairment of intangible assets arising
from business combinations, impairment of goodwill and other items that are considered non-operational and
material (such as fair value gains/losses on transaction-related options). Segmental assets and liabilities are not
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
192
7. Segment information
continued
7.1 Segment revenue and underlying profit
Property and | ||||||
Transaction | Facilities | Investment | ||||
Advisory | Consultancy | Management | Management | Unallocated | Total | |
2024 | £m | £m | £m | £m | £m | £m |
Revenue | ||||||
United Kingdom – commercial | 111.0 | 233.8 | 337.1 | 39.6 | – | 721.5 |
United Kingdom – residential | 183.3 | 51.2 | 52.6 | – | – | 287.1 |
Total United Kingdom | 294.3 | 285.0 | 389.7 | 39.6 | – | 1,008.6 |
CEME | 144.2 | 82.3 | 103.2 | 48.2 | – | 377.9 |
Asia Pacific – commercial | 129.8 | 97.8 | 451.6 | 6.2 | – | 685.4 |
Asia Pacific – residential | 17.2 | – | – | – | – | 17.2 |
Total Asia Pacific* | 147.0 | 97.8 | 451.6 | 6.2 | – | 702.6 |
North America** | 284.5 | 30.4 | – | – | – | 314.9 |
Revenue | 870.0 | 495.5 | 944.5 | 94.0 | – | 2,404.0 |
Underlying profit/(loss) before tax | ||||||
United Kingdom – commercial | 16.7 | 27.1 | 27.7 | 3.3 | (10.4) | 64.4 |
United Kingdom – residential | 20.5 | 6.7 | 6.9 | – | – | 34.1 |
Total United Kingdom | 37.2 | 33.8 | 34.6 | 3.3 | (10.4) | 98.5 |
CEME | (10.9) | 7.4 | (3.9) | 6.4 | – | (1.0) |
Asia Pacific – commercial | 6.7 | 0.5 | 22.9 | 0.4 | – | 30.5 |
Asia Pacific – residential | (0.9) | – | – | – | – | (0.9) |
Total Asia Pacific | 5.8 | 0.5 | 22.9 | 0.4 | – | 29.6 |
North America | 3.5 | (0.2) | – | – | – | 3.3 |
Underlying profit/(loss) before tax*** | 35.6 | 41.5 | 53.6 | 10.1 | (10.4) | 130.4 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
193
Property and |
||||||
Transaction |
Facilities |
Investment |
||||
Advisory |
Consultancy |
Management |
Management |
Unallocated |
Total |
|
2023 |
£m |
£m |
£m |
£m |
£m |
£m |
Revenue |
||||||
United Kingdom – commercial |
100.6 |
227.8 |
304.5 |
43.2 |
– |
676.1 |
United Kingdom – residential |
171.0 |
43.2 |
51.2 |
– |
– |
265.4 |
Total United Kingdom |
271.6 |
271.0 |
355.7 |
43.2 |
– |
941.5 |
CEME |
114.6 |
76.3 |
96.7 |
54.8 |
– |
342.4 |
Asia Pacific – commercial |
102.1 |
84.1 |
447.1 |
7.8 |
– |
641.1 |
Asia Pacific – residential |
17.9 |
– |
– |
– |
– |
17.9 |
Total Asia Pacific* |
120.0 |
84.1 |
447.1 |
7.8 |
– |
659.0 |
North America** |
266.7 |
28.4 |
– |
– |
– |
295.1 |
Revenue |
772.9 |
459.8 |
899.5 |
105.8 |
– |
2,238.0 |
Underlying profit/(loss) before tax |
||||||
United Kingdom – commercial |
14.0 |
25.4 |
24.5 |
4.8 |
(8.7) |
60.0 |
United Kingdom – residential |
19.4 |
4.3 |
5.9 |
– |
– |
29.6 |
Total United Kingdom |
33.4 |
29.7 |
30.4 |
4.8 |
(8.7) |
89.6 |
CEME |
(20.3) |
5.0 |
(3.8) |
9.3 |
– |
(9.8) |
Asia Pacific – commercial |
(2.9) |
1.9 |
22.2 |
0.7 |
– |
21.9 |
Asia Pacific – residential |
1.5 |
– |
– |
– |
– |
1.5 |
Total Asia Pacific |
(1.4) |
1.9 |
22.2 |
0.7 |
– |
23.4 |
North America |
(7.4) |
(1.0) |
– |
– |
– |
(8.4) |
Underlying profit/(loss) before tax*** |
4.3 |
35.6 |
48.8 |
14.8 |
(8.7) |
94.8 |
*
Revenues of £286.0m (2023: £287.9m) are attributable to the Hong Kong and Macau region.
**
Revenues of £305.9m (2023: £288.3m) are attributable to the US.
***
Transaction Advisory underlying profit before tax includes depreciation of £32.6m (2023: £34.5m), software amortisation of £2.8m (2023: £2.7m) and share
of post-tax profit from joint ventures and associates of £1.0m (2023: £2.5m). Consultancy underlying profit before tax includes depreciation of £9.7m (2023:
£7.6m), software amortisation of £1.2m (2023: £0.7m) and share of post-tax profit from joint ventures and associates of £nil (2023: £0.1m). Property and
Facilities Management underlying profit before tax includes depreciation of £18.5m (2023: £18.1m), software amortisation of £1.8m (2023: £1.6m) and share
of post-tax profit from joint ventures and associates of £7.3m (2023: £7.6m). Investment Management underlying profit before tax includes depreciation of
£2.7m (2023: £2.6m) and software amortisation of £0.6m (2023: £0.5m). Included in Other underlying loss is depreciation of £6.7m (2023: £6.8m), software
amortisation of £0.5m (2023: £0.5m) and share of post-tax loss from associates of £0.8m (2023: £nil).
The Unallocated segment includes costs and other expenses at holding company and subsidiary levels, which are not
directly attributable to the operating activities of the Group’s business segments.
A reconciliation of underlying profit before tax to profit before tax is provided in Note 10.
Inter-segmental revenue is not material. No single customer contributed 10% or more to the Group’s revenue for both
2024 and 2023.
7.2 Non-current assets segmentation by geography
2024 |
2023 |
|
£m |
£m |
|
Non-current assets |
||
United Kingdom |
268.2 |
281.4 |
CEME |
152.4 |
147.8 |
Asia Pacific |
150.4 |
144.9 |
North America* |
275.2 |
288.5 |
Total non-current assets |
846.2 |
862.6 |
*
Total non-current assets of £275.2m (2023: £284.6m) are attributable to the US.
Non-current assets include goodwill and intangible assets, plant, property and equipment, right-of-use assets,
contract-related assets, non-current non-financial assets, and investments in joint ventures and associates.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
194
The Group recognises revenue from the following major sources:
§
Residential property transactions
§
Commercial property transactions
§
Property consultancy services
§
Property and facilities management services
§
Investment management services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts
collected on behalf of third parties. The Group recognises revenue when it transfers control of a product or service
to a customer.
(a) Residential property transactions
Generally, revenue is recognised at a point in time, when unconditional contracts are exchanged. Fees are a fixed
consideration or a fixed percentage of the transaction value and are invoiced to the client upon completion.
For new home developments revenue is recognised following the terms of the contract. In some instances revenue
is recognised on a staged basis, reflecting the Group’s obligations to find a buyer and to further support the client
after exchange of contracts through to completion of the build and contract, which can be a number of years later.
For these developments, revenue recognition commences when the underlying contracts are exchanged, with total
revenue from the contract recognised by the date of completion in accordance with contractual terms. Fees are a
fixed consideration or a fixed percentage of the transaction value and are invoiced to the client at each contractual
milestone, in line with the recognition of revenue. In other instances, the revenue will be recognised when contracts
are exchanged and the transaction is unconditional. In these instances no further support is provided to the client
after this point.
(b) Commercial property transactions
Generally, revenue is recognised at a point in time on the date of completion or when unconditional contracts have
been exchanged. Fees are a fixed consideration or a fixed percentage of the transaction value and are invoiced to
the client upon completion.
(c) Property consultancy services
The Group primarily provides a wide range of professional property services including valuation, building and
housing consultancy, environmental consultancy, development, planning, research, corporate services, landlord
and tenant services and strategic projects.
Generally, revenue is recognised over a period of time as services are rendered in accordance with the contract
terms. Fee arrangements include fixed fee arrangements and fee for service arrangements (‘time and materials’).
For fixed-price contracts, revenue is recognised based on the stage of completion with reference to the actual
services provided to the end of the reporting period as a proportion of the total services to be provided under
the contract. This is determined on a contract by contract basis with reference to actual costs incurred in relation
to the best estimate of total costs expected for completion of the contract or using a milestone-based approach,
depending on the contract terms.
For fee-for-service contracts, revenue is recognised up to the amount of fees that the Group is entitled to invoice
for services performed to date based on contracted rates.
Payment arrangements vary between contracts, ranging from monthly retainers, monthly invoicing, quarterly
invoicing, invoicing upon reaching certain milestones in the contract or payment upon completion of the
final performance obligation in the contract. As a result, services rendered under a contract will often exceed
consideration received from a customer and a contract asset will be recognised. If payments exceed services
rendered, a contract liability will be recognised.
In some instances, revenue will be recognised at a point in time upon delivery of the final report to the client.
This is often the case for standalone valuation reports where the performance obligation is the provision of a
property valuation report to the client. The Group is entitled to invoice the customer when the final report has
been issued, at which point payment will be due.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
195
Material accounting policies that apply to revenue
continued
(d) Property and facilities management services
The Group primarily manages commercial, industrial, residential, leisure and agricultural property for owners.
The primary performance obligation relates to the ongoing management of a property where revenue is recognised
over a period of time as services are rendered in accordance with the contract terms. Revenue is recognised over
the life of a contract on a straight-line basis, which is in line with the satisfaction of the performance obligation.
Payment arrangements vary between contracts. The majority of customers are invoiced monthly or quarterly in
advance, with consideration payable upon the issue of an invoice. Where invoicing is in advance a contract liability
will be recognised.
In some property management arrangements, the Group is required to evaluate whether it is the principal
(report revenues on a gross basis) or agent (report revenues on a net basis). Where the primary performance
obligation of the contract relates to the arrangement of services for a customer rather than the responsibility
to provide the services, the Group is considered the agent and the mark-up for the sub-contracted services will
be recognised as revenue (revenues reported on a net basis).
For leasing fees and management fees on repairs or other ad hoc property management services outside of the
standard contract terms, revenue is recognised at a point in time upon completion of the performance obligation.
In these instances, the invoice would be raised to the customer upon completion of the performance obligation
and payment due at this time.
(e) Investment management services
Base management fees are received for the provision of fund and asset management services. Fund management
fees are typically either fixed or calculated as a fixed percentage of the net asset value or gross asset value of the
underlying portfolio of investments on a quarterly basis. Asset management fees are typically calculated as a fixed
percentage of gross rental income or passing rents on a quarterly basis. Fees are estimated based on the previous
quarter’s actual values and variances to these estimates are recognised in the following quarter. Revenue is recognised
over a period of time as services are rendered in accordance with the contract terms. Revenue is recognised over the
life of a contract on a straight-line basis, which is in line with the satisfaction of the performance obligation. Customers
are generally invoiced quarterly in advance with consideration payable upon the issue of an invoice, as a result a
contract liability will be recognised as the payments received will exceed services rendered.
Transaction fees are received for the coordination and management of the due diligence in connection with
acquisitions and sales of assets for customers. Transaction fees are calculated as a fixed percentage on the purchase
or sales price and are recognised at a point in time upon unconditional exchange of contracts.
Performance fees are received when a fund’s performance exceeds a designated return hurdle rate or pre-defined
benchmark or when the sale of individual assets exceeds a designated return hurdle rate. The Group estimates fees
for this variable fee arrangement using a most likely amount approach on a contract by contract basis. Variable
consideration is included in revenue only to the extent that it is highly probable that the amount will not be subject
to significant reversal when the uncertainty is resolved.
(f) Financing components
For contracts where the period between the transfer of the promised goods or services to the customer
and payment by the customer exceeds one year, the transaction price is adjusted for the time value money.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
196
8. Revenue
continued
Revenue of £2,404.0m (2023: £2,238.0m) in the income statement relates solely to revenue arising from contracts
with customers.
The Group derives revenue from the transfer of services over time and at a point in time in the major product lines
Contract-related assets and liabilities are as follows:
2024 | 2023 | |
£m | £m | |
Asset recognised for costs incurred to obtain a contract – investment management contracts | 1.3 | 1.8 |
Contract assets – consulting contracts | 13.0 | 12.6 |
Accrued income (Note 21) | 70.9 | 53.8 |
Total contract-related assets | 85.2 | 68.2 |
Current | 83.9 | 66.4 |
Non-current | 1.3 | 1.8 |
85.2 | 68.2 | |
Deferred revenue | 16.7 | 11.9 |
Total contract liabilities – current | 16.7 | 11.9 |
No material impairment loss on contract assets has been recognised in the current or prior year.
The increase in contract-related assets year on year largely relates to acquisitions of subsidiaries in the year.
Amortisation on investment management contract costs recognised in the income statement amounted to
£0.6m (2023: £0.7m).
All material consulting contracts are for periods of one year or less. As permitted under IFRS 15, the transaction
price allocated to these unsatisfied contracts is not disclosed.
Revenue recognised in the year that was included in the contract liability balance at the beginning of the period
totalled £11.9m (2023: £13.7m).
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
197
Operating profit is stated after charging/(crediting):
2024 | 2023 | |
£m | £m | |
In employee benefit expense | ||
– Restructuring costs | 15.5 | 12.8 |
– Transaction-related costs | 13.3 | 12.8 |
In depreciation | ||
– Depreciation of right-of-use assets – leasehold properties | 48.0 | 47.6 |
– Depreciation of right-of-use assets – equipment and motor vehicles | 3.8 | 3.4 |
In other operating expenses | ||
– Net foreign exchange losses (including net losses on forward foreign exchange contracts) | 3.1 | 0.7 |
– Restructuring costs | 1.7 | 1.1 |
– Transaction-related costs: other | 2.1 | 1.5 |
– Impairment of goodwill | 1.9 | 3.9 |
– Expense relating to short-term leases | 0.6 | 0.8 |
– Expense relating to variable lease payments not included in lease liabilities | – | 0.4 |
– Gain on disposal of leases (including sub-lets) | (0.2) | (4.3) |
In other net gains | ||
– Dividends from financial assets held at FVPL | (0.5) | (0.2) |
– Profit on disposal of joint ventures | – | (0.4) |
– Fair value gain on step acquisition of subsidiaries previously classified as associates | (4.4) | – |
– Net fair value loss/(gain) on transaction-related derivative financial instruments | 3.4 | (1.4) |
Other operating expenses includes £282.4m of contract costs in relation to property and facilities management
contracts (2023: £253.8m). There are no other cost categories within other operating expenses that are
2024 | 2023 | |
£m | £m | |
Audit services | ||
Fees payable to the Company’s auditors for the audit of the parent Company | ||
and the consolidated financial statements | 1.0 | 0.9 |
Fees payable to the Company’s auditors and its associates for the audit | ||
of the Company’s subsidiaries | 3.4 | 3.3 |
4.4 | 4.2 | |
Audit-related assurance services | 0.4 | 0.4 |
Total | 4.8 | 4.6 |
Audit-related assurance services relate to the work performed in connection with the Group’s interim financial
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
198
The Group believes that the consistent presentation of underlying profit before tax, underlying effective tax
rate, underlying basic earnings per share and underlying diluted earnings per share provides additional useful
information to Shareholders on the underlying trends and comparable performance of the Group over time by
excluding significant non-operational costs/income from the GAAP measures. The ‘underlying’ measures are also
used by the Group for internal performance analysis and incentive compensation arrangements for employees.
These terms are not defined terms under IFRS and may therefore not be comparable with similarly-titled profit
measures reported by other companies. They are not intended to be a substitute for, or superior to, GAAP
measures. The non-GAAP measures may be materially higher or lower than GAAP measures and should not be
regarded as a complete picture of the Group’s financial performance. In particular, underlying profit before tax
may be materially higher or lower than reported profit before tax as a result of the adjustments.
The term ‘underlying’ refers to the relevant measure of profit, earnings or taxation being reported mainly excluding
the impact (pre and post-tax where applicable) of the following items:
§
the difference between IFRS 2 charges related to outstanding bonus-related deferred share awards and the
estimated value of the current year bonus pool expected to be allocated to deferred share awards;
§
amortisation of intangible assets arising from business combinations (this excludes software or other pre-existing
intangible assets of the acquiree);
§
items that are considered significant in size and non-operational in nature including restructuring costs,
impairments of goodwill and intangible assets arising from business combinations and profits or losses arising
on disposals of subsidiaries and other investments; and
§
significant transaction-related costs associated with business combinations.
The majority of adjustments made to the GAAP measures to arrive at ‘underlying’ measures relate to charges
arising as a result of business combinations. The nature of the Group’s business and the businesses that the Group
acquires (being ‘asset light’ people businesses) require the Group to structure business acquisitions such that often
payment of deferred consideration is linked to recipients’ continuing and active engagement in the business at the
date of the deferred payment, with these payments required to be expensed to the income statement under IFRS
3. For internal performance analysis and incentive compensation arrangements, these charges are considered part
of the initial cost of acquiring a business, instead of an ongoing operational cost, and are therefore excluded from
the Group’s ‘underlying’ measures. The same rationale is applied to the exclusion of amortisation of intangible assets
arising from business combinations (excluding software or other pre-existing intangible assets of the acquiree), any
impairments of goodwill and the aforementioned intangible assets, significant transaction-related costs associated
with business combinations and significant restructuring costs. These items are not considered to reflect the
business’s trading performance and so are adjusted to ensure consistency between periods.
The adjustment for share-based payments relates to the impact of the accounting standard for share-based
compensation. The annual bonus is paid in a mixture of cash and deferred shares and the proportions can vary
from one year to another. Under IFRS, the deferred share element is amortised to the income statement over the
vesting period whilst the cash element is expensed in the year. The adjustment above addresses this by adding to
or deducting from profit the difference between the IFRS 2 charge in relation to outstanding bonus-related share
awards and the estimated value of the current year bonus pool to be awarded in deferred shares. This adjustment
is made to align the underlying staff cost in the year with the revenue recognised in the same period, providing
additional information on the Group’s performance over time with respect to profitability.
The underlying effective tax rate represents the underlying income tax expense expressed as a percentage of
underlying profit before tax. The underlying income tax expense is the income tax expense excluding the tax effect
of the adjustments made to arrive at underlying profit before tax and other tax effects related to these adjustments.
Underlying basic earnings per share and underlying diluted earnings per share both utilise the underlying profit
after tax measure instead of GAAP earnings. The weighted average number of shares remain the same as the
GAAP measure.
The Group also refers to revenue and underlying profit on a constant currency basis which are both non-GAAP
measures (see Appendices). Constant currency results are calculated by translating the current year revenue and
underlying profit using the prior year exchange rates. This measure allows the Group to assess the results of the
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
199
Non-GAAP measures involve the exclusion of items that, in the judgement of management, need to be disclosed
separately in order to provide additional information with respect to the Group’s operational performance. The
A reconciliation between GAAP and underlying measures are set out below:
2024 |
2023 |
|
£m |
£m |
|
Reported profit before tax |
88.3 |
55.4 |
Adjustments: |
||
Amortisation of intangible assets arising from business combinations |
9.2 |
9.9 |
Impairment of goodwill |
1.9 |
3.9 |
Share-based payment adjustment |
(1.1) |
(1.1) |
Profit on disposal of joint ventures |
– |
(0.4) |
Restructuring costs |
17.2 |
13.9 |
Transaction-related costs |
15.9 |
14.6 |
Fair value gain on step acquisition of subsidiaries previously classified as associates |
(4.4) |
– |
Fair value loss/(gain) on transaction-related options |
3.4 |
(1.4) |
Underlying profit before tax |
130.4 |
94.8 |
Impairment of goodwill in both years relates to the Indonesia cash generating unit (refer to Note 16 for further details).
Profit on disposal recognised in the prior year was primarily in relation to disposal of holdings in joint ventures in China.
The restructuring programme that commenced in 2023 was held open through 2024 to ensure initial market recovery
assumptions remained intact. For specific markets, recovery assumptions were revised and further restructuring was
required resulting in the Group recognising restructuring costs of £17.2m in the year (2023: £13.9m).
Transaction-related costs include a £13.2m charge for future consideration payments which are contingent on the
continuity of recipients’ employment in the future (2023: £12.7m). In the current and prior year, a significant portion
of the charge related to the acquisition of DRC Capital LLP (‘DRC’) in 2021. Transaction-related costs also consist of
£0.2m of professional advisory transaction fees (2023: £1.5m) and £0.5m of interest on deferred consideration and
non–current future payments in relation to business acquisitions that are linked to employment (2023: £0.3m). In
addition, transaction-related costs included a £0.1m (2023: £0.1m) charge relating to prepaid amounts issued as part of
business acquisitions that are linked to continued active engagement in the business. Of these items, prepaid amounts
that are linked to active engagement in the business are recorded as employee benefits expenses in the income
statement, unwinding of interest is recorded as a finance cost in the income statement and all other charges/(credits)
are recorded within other operating expenses. In the current year, transaction-related costs also include a £0.8m fair
value charge in relation to the re-measurement of contingent deferred consideration (2023: £nil) and a £1.1m charge
in relation to a payment to the non-controlling interest holder in Savills Real Estate LLC to buy-out their remaining
interest in the business.
In the current year, a fair value gain on step acquisition of subsidiaries previously classified as associates of £4.4m
largely relates to the re-measurement of the Group’s holding in its associate, Riviera Estates SAS, prior to the
acquisition of a further 24% equity interest in the business, bringing the Group’s total shareholding to 75%.
The fair value loss on transaction-related call options in the current year of £3.4m relates primarily to the loss on
the re-measurement of the option which gives the Group the right to purchase the remaining 20% shareholding in
Absolute Maintenance Services Pte Ltd and Solute Pte Ltd (‘AMS’) in 2027. In the prior year, the fair value gain related
to the re-measurement of the Samsung Life call option, which at the time gave Samsung Life the right to purchase up
to an additional 10% shareholding in the Savills IM Holding Ltd group subject to the quantum of capital it has invested
in Savills Investment Management products during the initial five-year term. In March 2024, Samsung Life exercised the
first tranche of the option, purchasing an additional 4% in the Savills IM Holding Ltd group leaving Samsung Life the
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
200
11.1 Employee benefits expense
2024 |
2023 |
|
£m |
£m |
|
Basic salaries and wages |
904.5 |
853.3 |
Profit share and commissions |
485.6 |
464.8 |
Wages and salaries |
1,390.1 |
1,318.1 |
Social security costs |
116.3 |
109.3 |
Other pension costs |
43.6 |
40.1 |
Share-based payments |
31.4 |
28.8 |
1,581.4 |
1,496.3 |
The monthly average number of employees (including Directors) for the year was:
2024 |
2023 |
|
United Kingdom |
9,610 |
9,454 |
CEME |
3,431 |
3,220 |
Asia Pacific |
28,430 |
28,412 |
North America |
980 |
994 |
42,451 |
42,080 |
The average number of UK employees (including Directors) during the year included 141 employed under fixed-term
2024 |
2023 |
|
£m |
£m |
|
Key management |
||
– Short-term employee benefits |
16.1 |
15.1 |
– Post-employment benefits |
0.1 |
0.1 |
– Share-based payments |
4.5 |
4.2 |
20.7 |
19.4 |
The key management of the Group for the year ended 31 December 2024 comprised the Board of Directors and the
GEB members*. Directors’ remuneration is contained in the Remuneration Report on pages 129 to 162.
During the year, eight (2023: seven) GEB members made aggregate gains totalling £4.3m (2023: £4.1m) on the
exercise of options under PSP, DSBP and DSP schemes (2023: PSP, DSBP and DSP schemes).
Retirement benefits under the defined benefit scheme are accruing for two (2023: two) GEB members and benefits
are accruing under a defined contribution scheme in Hong Kong for two (2023: two) GEB members.
*
Including the 2024 remuneration of the MD Asia Pacific ex-Greater China who acted as alternate for the CEO Asia Pacific ex-Greater China for the
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
201
2024 | 2023 | |
£m | £m | |
Bank interest receivable | 57.2 | 49.5 |
Finance income from sublease income | 0.2 | – |
Net interest on defined benefit pension assets | 0.1 | 1.1 |
Finance income | 57.5 | 50.6 |
Bank interest payable | (33.2) | (28.9) |
Unwinding of discounts on liabilities | (0.7) | (0.4) |
Finance charges on lease liabilities | (9.1) | (9.2) |
Finance costs | (43.0) | (38.5) |
Net finance income | 14.5 | 12.1 |
Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement,
except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
In this case, the tax is also recognised in other comprehensive income or directly in equity.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
year-end date in the countries where the Company and its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income
tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and
does not give rise to equal taxable and deductible temporary differences. Deferred income tax is determined using
tax rates (and laws) that have been enacted or substantively enacted by the year end date and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised and the carry forward of unused tax credits
and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary
difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss and does not give
rise to equal taxable and deductible temporary differences.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and
associates except for deferred income tax liability where the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
In respect of deductible temporary differences associated with investments in subsidiaries, joint ventures and
associates, deferred tax assets are recognised only to the extent that it is probable that the temporary differences
will reverse in the foreseeable future and taxable profit will be available against which the temporary differences
can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income tax
levied by the same taxation authority on either the same taxable entity or different taxable entities where there
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
202
13. Taxation
continued
13.1 Analysis of taxation expense for the year
2024 | 2023 | |
£m | £m | |
Current tax | ||
United Kingdom: | ||
Corporation tax on profits for the year | 22.6 | 13.2 |
Adjustment in respect of prior years | 2.3 | 0.7 |
24.9 | 13.9 | |
Overseas tax | 21.6 | 14.3 |
Adjustment in respect of prior years | (1.1) | (0.5) |
Total current tax | 45.4 | 27.7 |
Deferred tax | ||
Representing: | ||
United Kingdom | (4.0) | 1.2 |
Effect of change in UK tax rate on deferred tax | – | (0.2) |
Overseas tax | (10.4) | (9.1) |
Adjustment in respect of prior years | 4.4 | (3.7) |
Total deferred tax | (10.0) | (11.8) |
Income tax expense | 35.4 | 15.9 |
13.2 Factors affecting taxation expense for the year
The tax on the Group’s profit before income tax differs from the theoretical amount that would arise using the UK tax
rate of 25% (2023: weighted average tax rate of 23.5%) applicable to profits of the consolidated entities as follows:
2024 | 2023 | |
£m | £m | |
Profit before income tax | 88.3 | 55.4 |
Tax on profit at 25% (2023: 23.5%) | 22.1 | 13.0 |
Effects of: | ||
Adjustment in respect of prior years | 5.6 | (3.5) |
Difference in overseas tax rates | (0.6) | (0.3) |
Utilisation of previously unprovided tax losses | (0.3) | (0.7) |
Expenses and other charges not deductible for tax purposes | 10.9 | 10.2 |
Non-assessable income | (0.7) | (0.6) |
Tax on joint ventures and associates | (1.6) | (2.0) |
Effect of change in tax rates on deferred tax | – | (0.2) |
Income tax expense | 35.4 | 15.9 |
The effective tax rate of the Group for the year ended 31 December 2024 is 40.1% (2023: 28.7%), which is higher
(2023: higher) than the UK applicable rate.
The Group has performed analysis of the impact from the application of OECD’s Pillar Two Model Rules on both
historical performance and forward-looking projections. Due to the complexities in applying the legislation, the
quantitative impact is not yet reasonably estimable but since the Group does not generally operate in low tax
jurisdictions, the impact is not expected to be material.
Deferred tax has been determined using the applicable effective future tax rate that will apply in the expected
period of utilisation of the deferred tax asset or liability.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
203
13.3 Tax components of other comprehensive income
2024 |
2023 |
|
£m |
£m |
|
Tax on items that will not be reclassified to profit or loss |
||
Deferred tax on remeasurement of defined benefit pension scheme |
(2.9) |
5.8 |
Deferred tax on pension – effect of tax rate change |
– |
2.6 |
(2.9) |
8.4 |
|
Tax on items relating to components of other comprehensive income |
(2.9) |
8.4 |
13.4 Tax recognised directly in reserves
2024 |
2023 |
|
£m |
£m |
|
Current tax on share-based payment arrangements |
0.5 |
0.2 |
Deferred tax on share-based payment arrangements |
0.3 |
0.3 |
Current tax on IFRS 16 lease recognition release |
0.2 |
0.2 |
Deferred tax on IFRS 16 recognition release |
(0.2) |
(0.2) |
Deferred tax on revaluation of FVOCI investments |
– |
(0.2) |
Current tax on foreign exchange reserve movements |
– |
(0.2) |
Tax on items recognised directly in reserves |
0.8 |
0.1 |
2024 |
2023 |
|
£m |
£m |
|
Deferred tax assets |
||
– Deferred tax asset to be recovered after more than 12 months |
56.5 |
45.8 |
– Deferred tax asset to be recovered within 12 months |
19.0 |
20.3 |
75.5 |
66.1 |
|
Deferred tax liabilities |
||
– Deferred tax liability to be recovered after more than 12 months |
(11.5) |
(9.0) |
– Deferred tax liability to be recovered within 12 months |
(1.8) |
(1.8) |
(13.3) |
(10.8) |
|
Deferred tax asset – net |
62.2 |
55.3 |
2024 |
2023 |
|
£m |
£m |
|
At 1 January – net asset |
55.3 |
37.0 |
Amount credited to the income statement |
10.0 |
11.6 |
Effect of tax rate change within the income statement |
– |
0.2 |
Tax credited to other comprehensive income |
||
– Defined benefit pension scheme – actuarial losses |
(2.9) |
5.8 |
– Defined benefit pension scheme – effect of UK tax rate change |
– |
2.6 |
Tax credited/(charged) to reserves |
||
– Employee benefits |
0.3 |
0.3 |
– Revaluation of FVOCI investments |
– |
(0.2) |
– IFRS 16 initial lease recognition released to reserves |
(0.2) |
(0.2) |
Additions through business combinations (Note 28) |
0.8 |
(0.1) |
Exchange movement |
(1.1) |
(1.7) |
At 31 December – net asset |
62.2 |
55.3 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
204
13. Taxation
continued
13.5 Deferred taxation
continued
Deferred tax assets have been recognised for tax loss carry-forwards and other temporary differences in various
entities in the Group. The largest amounts recognised are in the German and US businesses. The utilisation of these
losses in both of these countries is dependent on the existence of taxable profits, which are expected to arise in
future years. In assessing the probability of recovery, management have reviewed the Group’s strategic plan. This plan
anticipates increased profitability in both the US and Germany in light of the continued recovery of those real estate
markets, the results of the restructuring programs undertaken in 2023 and 2024 and the successful execution of the
global strategy.
As at the reporting date the Group did not recognise deferred income tax assets of £3.4m (2023: £3.7m) in respect
of losses amounting to £15.5m, which can be carried forward indefinitely against future taxable income (2023: £17.3m,
which can be carried forward indefinitely against future taxable income).
The movement on the deferred tax account is shown below:
Other | ||||||||
Accelerated | employee | Share- | ||||||
capital | Provisions | benefit | Tax | Retirement | based | |||
allowances | and other* | obligations** | losses | benefits | Revaluations | payments | Total | |
Deferred tax assets | £m | £m | £m | £m | £m | £m | £m | £m |
Balance at 1 January 2023 | 3.1 | 16.8 | 20.0 | 7.3 | 1.5 | 0.2 | 9.3 | 58.2 |
Reclassifications to deferred | ||||||||
tax liabilities | – | – | – | – | (7.7) | – | – | (7.7) |
Amount credited/(charged) to | ||||||||
the income statement | 1.7 | 0.4 | (1.7) | 7.7 | (0.6) | – | 1.7 | 9.2 |
Effect of tax rate change within | ||||||||
the income statement | – | 0.1 | 0.1 | – | – | – | – | 0.2 |
Amount credited to other | ||||||||
comprehensive income | – | – | – | – | 5.8 | – | – | 5.8 |
Effect of tax rate change within | ||||||||
other comprehensive income | – | – | – | – | 2.6 | – | – | 2.6 |
Amount (charged)/credited | ||||||||
to reserves | – | (0.2) | – | – | – | (0.2) | 0.3 | (0.1) |
Additions through business | ||||||||
combinations | – | (0.1) | – | – | – | – | – | (0.1) |
Exchange movement | (0.1) | (0.6) | (1.1) | (0.2) | – | – | – | (2.0) |
At 31 December 2023 | 4.7 | 16.4 | 17.3 | 14.8 | 1.6 | – | 11.3 | 66.1 |
Reclassifications from/(to) | ||||||||
deferred tax liabilities | – | 0.1 | – | – | (0.2) | – | – | (0.1) |
Amount (charged)/credited to | ||||||||
the income statement | (3.0) | 0.1 | 7.4 | 3.1 | – | – | 2.1 | 9.7 |
Amount charged to other | ||||||||
comprehensive income | – | – | – | – | (0.2) | – | – | (0.2) |
Amount (charged)/credited | ||||||||
to reserves | – | (0.2) | – | – | – | – | 0.3 | 0.1 |
Additions through business | ||||||||
combinations (Note 28) | – | 1.0 | – | – | – | – | – | 1.0 |
Exchange movement | – | – | (0.3) | (0.7) | (0.1) | – | – | (1.1) |
At 31 December 2024 | 1.7 | 17.4 | 24.4 | 17.2 | 1.1 | – | 13.7 | 75.5 |
Set-off of deferred tax liabilities pursuant to set-off provisions | (10.7) | |||||||
Deferred tax asset at 31 December 2024 in the statement of financial position | 64.8 | |||||||
Deferred tax asset at 31 December 2023 in the statement of financial position (net of £8.9m set-off) | 57.2 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
205
Accelerated |
|||||
capital |
Provisions |
Retirement |
Intangible |
||
allowances |
and other* |
benefits |
assets |
Total |
|
Deferred tax liabilities – Group |
£m |
£m |
£m |
£m |
£m |
At 1 January 2023 |
(1.2) |
(0.8) |
(7.7) |
(11.5) |
(21.2) |
Transfers |
– |
(0.2) |
– |
0.2 |
– |
Reclassifications to deferred tax assets |
– |
– |
7.7 |
– |
7.7 |
Tax credited/(charged) to the income statement |
0.4 |
(0.7) |
– |
2.7 |
2.4 |
Exchange movement |
– |
0.1 |
– |
0.2 |
0.3 |
At 31 December 2023 |
(0.8) |
(1.6) |
– |
(8.4) |
(10.8) |
Reclassifications (to)/from deferred tax assets |
– |
(0.1) |
0.2 |
– |
0.1 |
Tax (charged)/credited to the income statement |
– |
(0.8) |
– |
1.1 |
0.3 |
Tax charged to other comprehensive income |
– |
– |
(2.7) |
– |
(2.7) |
Additions through business combinations (Note 28) |
– |
– |
– |
(0.2) |
(0.2) |
At 31 December 2024 |
(0.8) |
(2.5) |
(2.5) |
(7.5) |
(13.3) |
Set-off of deferred tax liabilities pursuant to set-off provisions |
10.7 |
||||
Deferred tax liabilities at 31 December 2024 in the statement of financial position |
(2.6) |
||||
Deferred tax liabilities at 31 December 2023 in the statement of financial position (net of £8.9m set-off) |
(1.9) |
||||
Net deferred tax asset |
|||||
At 31 December 2024 |
62.2 |
||||
At 31 December 2023 |
55.3 |
*
Provisions and Other primarily includes deferred tax assets relating to accruals and provisions for expenses not deductible until paid.
**
Other Employee Benefit Obligations includes deferred tax assets relating to unpaid bonus accruals, holiday pay provisions, long service leave provisions and
14.1 Basic and diluted earnings per share
Basic earnings per share (‘EPS’) are based on the profit attributable to owners of the Company and the weighted
average number of ordinary shares in issue during the year, excluding the weighted average number of ordinary shares
held by the EBT (2024 closing: 8,057,705 shares, 2023 closing: 7,615,420 shares) and the Rabbi Trust (2024 closing:
821,163 shares, 2023 closing: 1,502,155 shares).
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume
conversion of dilutive potential ordinary shares, being the share options granted to employees where the exercise
price is less than the average market price of the Company’s ordinary shares during the year and where performance
conditions have been met.
The earnings and the shares used in the calculations are as follows:
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
|
Earnings |
Shares |
EPS |
Earnings |
Shares |
EPS |
|
£m |
million |
pence |
£m |
million |
pence |
|
Basic earnings per share |
53.6 |
136.0 |
39.4 |
40.8 |
135.9 |
30.0 |
Effect of additional shares issuable under option |
– |
7.9 |
(2.2) |
– |
5.8 |
(1.2) |
Diluted earnings per share |
53.6 |
143.9 |
37.2 |
40.8 |
141.7 |
28.8 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
206
14. Earnings per share
continued
14.2 Underlying basic and diluted earnings per share
A reconciliation between GAAP and underlying measures are set out below (underlying basic earnings per share and
underlying diluted earnings per share).
2024 | 2024 | 2024 | 2023 | 2023 | 2023 | |
Earnings | Shares | EPS | Earnings | Shares | EPS | |
£m | million | pence | £m | million | pence | |
Basic earnings per share | 53.6 | 136.0 | 39.4 | 40.8 | 135.9 | 30.0 |
Amortisation of intangible assets arising | ||||||
from business combinations after tax | 7.0 | – | 5.1 | 7.6 | – | 5.6 |
Impairment of goodwill after tax | 1.4 | – | 1.0 | 4.0 | – | 2.9 |
Share-based payment adjustment after tax | (0.7) | – | (0.5) | (0.6) | – | (0.4) |
Profit on disposal of joint ventures after tax | – | – | – | (0.4) | – | (0.3) |
Restructuring costs after tax | 14.1 | – | 10.4 | 10.6 | – | 7.8 |
Transaction-related costs after tax | 15.6 | – | 11.5 | 14.3 | – | 10.5 |
Fair value gain step acquisition of subsidiaries | ||||||
previously classified as associates | (4.4) | – | (3.2) | – | – | – |
Fair value loss on transaction-related options | 3.4 | – | 2.5 | (1.4) | – | (1.0) |
Underlying basic earnings per share | 90.0 | 136.0 | 66.2 | 74.9 | 135.9 | 55.1 |
Effect of additional shares issuable under option | – | 7.9 | (3.7) | – | 5.8 | (2.2) |
Underlying diluted earnings per share | 90.0 | 143.9 | 62.5 | 74.9 | 141.7 | 52.9 |
Refer to Note 10 for the gross amounts of the above adjustments and a reconciliation between reported profit before
Dividend distributions are recognised as a liability in the Group’s financial statements in the period in which they are
2024 | 2023 | |
£m | £m | |
Amounts recognised as distribution to equity holders in the year: | ||
In respect of the previous year | ||
Ordinary final dividend of 13.9p per share (2022: 13.4p) | 18.8 | 18.2 |
Supplemental interim dividend of 2.0p per share (2022: 15.6p) | 2.8 | 21.2 |
In respect of the current year | ||
Interim dividend of 7.1p per share (2023: 6.9p) | 9.6 | 9.4 |
31.2 | 48.8 |
The Group paid £2.6m (2023: £2.2m) of dividends to non-controlling interests.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
207
Under the terms of the Savills plc 1992 Employee Benefit Trust (the ‘EBT’), the Trustees have waived their dividend
entitlement for all shares held by the Trust. The dividends paid to the Rabbi Trust are eliminated upon Group
consolidation, as a result the dividends paid by the Group and the Company are not equal.
The Board recommends a final dividend of 14.5p per ordinary share (amounting to £19.8m), alongside the
supplemental interim dividend of 8.6p per ordinary share (amounting to £11.7m), to be paid on 22 May 2025 to
Shareholders on the register at 11 April 2025. These financial statements do not reflect this dividend payable.
The total paid and recommended ordinary and supplemental dividend for the 2024 financial year comprises an
Goodwill represents the excess of the cost of acquisition of a subsidiary or associate over the Group’s share of the
fair value of identifiable net assets acquired.
Goodwill is carried at cost less accumulated impairment losses. Separately recognised goodwill is tested annually
for impairment, or more frequently if events or changes in circumstances indicate potential impairment. An
impairment loss is recognised for the amount by which the carrying value exceeds the recoverable amount. The
recoverable amount is the higher of value-in-use and fair value less costs of disposal. Impairment losses on goodwill
are not reversed.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those
cash-generating units (‘CGUs’) or groups of CGUs that are expected to benefit from the business combination in
which the goodwill arose. The Group allocates goodwill to each business segment in the geographical region in
which it operates.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
In respect of associates and joint ventures, goodwill is included in the carrying value of the investment and is not
Intangible assets arising from business combinations and incremental contract costs are valued at fair value on
acquisition and amortised over the useful life. Fair value on acquisition is determined by third-party valuation where
the acquisition is significant.
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use
the specific software. Costs associated with maintaining computer software programmes are recognised as an
expense as incurred.
Measurement subsequent to initial recognition is at cost less accumulated amortisation and impairment.
Amortisation charges are spread on a straight-line basis over the period of the assets’ estimated useful lives as follows:
Customer relationships | 3–15 years |
Order backlogs | 2–4 years |
Contracts – investment, property management and other existing business contracts | 2–20 years |
Brands | 10 years |
Computer software | 3–7 years |
Acquired investment management contracts relating to open-ended funds have been attributed indefinite useful lives,
reflecting the open-ended nature of the funds, the Group’s intention to continue with the management of the funds
and the expectation that these contracts are expected to generate net cash inflows for the Group.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
208
16. Goodwill and intangible assets
continued
Material accounting policies that apply to goodwill and intangible assets
continued
Assets that have indefinite useful lives are not subject to amortisation or depreciation and are tested annually for
impairment or whenever an indicator of impairment exists. Assets that are subject to amortisation or depreciation
are reviewed for impairment whenever an indicator of impairment exists. An impairment loss is recognised to the
extent that the carrying value exceeds the higher of the asset’s fair value less cost to sell and its value-in-use. Prior
impairments of non-financial assets (other than goodwill) are reviewed for possible reversal at each reporting date.
Value-in-use is determined using the discounted cash flow method, with an appropriate discount rate to reflect
market rates and specific risks associated with the asset.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (CGUs). Where it is not possible to estimate the recoverable amount of an individual asset,
The Group tests goodwill for impairment on an annual basis by comparing the carrying value of these assets
with the value-in-use calculations of the relevant CGUs. Within this process, the Group makes a number of key
assumptions including discount rates, terminal growth rates and forecast cash flows. The assumptions impact
the recoverability of goodwill and the requirement for impairment charges in the income statement. Additional
information is within this note, which highlights the critical estimates applied in the value-in-use calculations
for those CGUs that are considered most sensitive to changes in key assumptions and the sensitivity of these
Investment | |||||||
Customer/ | and property | ||||||
business | management | Order | Computer | ||||
Goodwill | relationships | contracts | backlogs | Brands | software | Total | |
£m | £m | £m | £m | £m | £m | £m | |
Cost | |||||||
At 1 January 2024 | 501.2 | 43.6 | 59.2 | 3.6 | 4.6 | 45.4 | 657.6 |
Additions through business | |||||||
combinations (Note 28) | 20.1 | – | 1.2 | – | 1.7 | – | 23.0 |
Other additions | – | – | – | – | – | 9.1 | 9.1 |
Disposals | – | – | – | – | – | (0.8) | (0.8) |
Exchange movement | (3.6) | (0.1) | (0.7) | (0.1) | – | (0.3) | (4.8) |
At 31 December 2024 | 517.7 | 43.5 | 59.7 | 3.5 | 6.3 | 53.4 | 684.1 |
Accumulated amortisation and impairment | |||||||
At 1 January 2024 | 57.6 | 28.9 | 36.9 | 3.3 | 2.5 | 29.0 | 158.2 |
Amortisation charge for the year | – | 3.1 | 5.7 | 0.1 | 0.3 | 6.9 | 16.1 |
Impairment | 1.9 | – | – | – | – | – | 1.9 |
Disposals | – | – | – | – | – | (0.8) | (0.8) |
Exchange movement | (0.8) | (0.2) | (0.7) | (0.1) | – | (0.3) | (2.1) |
At 31 December 2024 | 58.7 | 31.8 | 41.9 | 3.3 | 2.8 | 34.8 | 173.3 |
Net book value | |||||||
At 31 December 2024 | 459.0 | 11.7 | 17.8 | 0.2 | 3.5 | 18.6 | 510.8 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
209
During the year, goodwill and intangible assets were tested for impairment in accordance with IAS 36. An impairment
charge of £1.9m (2023: £3.9m) was recognised against the Indonesia CGU as a result of the impact of current
economic conditions on the short-term outlook of the business. The impairment charge was allocated against the
Transaction Advisory (£1.4m, 2023: £3.5m), Consultancy (£0.4m, 2023: £0.4m) and Property and Facility Management
(£0.1m, 2023: £nil) segments.
The carrying amount of intangible assets with indefinite useful lives totals £2.0m as at 31 December 2024 (2023:
£2.0m), which consists of investment management contracts in relation to open-ended funds.
Investment and property management contracts includes the investment management contract asset identified on
the acquisition of DRC in May 2021. This intangible asset is amortised over six years, with the amortisation period
ending in May 2027. The carrying value of this intangible asset as at 31 December 2024 totals £7.1m (2023: £10.0m).
All intangible amortisation charges in the year are disclosed on the face of the income statement.
Investment |
|||||||
Customer/ |
and property |
||||||
business |
management |
Order |
Computer |
||||
Goodwill |
relationships |
contracts |
backlogs |
Brands |
software |
Total |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
Cost |
|||||||
At 1 January 2023 |
505.0 |
44.4 |
59.4 |
3.8 |
4.7 |
45.2 |
662.5 |
Additions through business |
|||||||
combinations |
10.4 |
– |
0.5 |
– |
– |
– |
10.9 |
Other additions |
– |
– |
– |
– |
– |
5.5 |
5.5 |
Disposals |
– |
– |
– |
– |
– |
(4.4) |
(4.4) |
Exchange movement |
(14.2) |
(0.8) |
(0.7) |
(0.2) |
(0.1) |
(0.9) |
(16.9) |
At 31 December 2023 |
501.2 |
43.6 |
59.2 |
3.6 |
4.6 |
45.4 |
657.6 |
Accumulated amortisation and Impairment |
|||||||
At 1 January 2023 |
55.4 |
26.0 |
31.8 |
2.9 |
2.3 |
28.2 |
146.6 |
Amortisation charge for the year |
– |
3.3 |
5.7 |
0.5 |
0.3 |
6.0 |
15.8 |
Impairment in the year |
3.9 |
– |
– |
– |
– |
– |
3.9 |
Disposals |
– |
– |
– |
– |
– |
(4.5) |
(4.5) |
Exchange movement |
(1.7) |
(0.4) |
(0.6) |
(0.1) |
(0.1) |
(0.7) |
(3.6) |
At 31 December 2023 |
57.6 |
28.9 |
36.9 |
3.3 |
2.5 |
29.0 |
158.2 |
Net book value |
|||||||
At 31 December 2023 |
443.6 |
14.7 |
22.3 |
0.3 |
2.1 |
16.4 |
499.4 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
210
16. Goodwill and intangible assets
continued
Goodwill and indefinite life intangible assets are allocated to the Group’s cash-generating units (‘CGUs’) identified
according to country of operation and business segment. In most cases, the CGU is an individual subsidiary or
operation. Where there are multiple CGUs in a country, these CGUs have been grouped to an extent which represent
the lowest level at which goodwill is internally monitored and tested for impairment annually. A segment-level
summary of the allocation of goodwill and indefinite useful life intangible assets is presented below:
Property and | Indefinite life | ||||||
Transaction | Facilities | Investment | intangible | ||||
Advisory | Consultancy | Management | Management | Total | Goodwill | assets* | |
2024 | £m | £m | £m | £m | £m | £m | £m |
United Kingdom | 42.7 | 13.6 | 30.9 | 32.2 | 119.4 | 117.4 | 2.0 |
CEME | 61.0 | 18.7 | 20.9 | 4.6 | 105.2 | 105.2 | – |
Asia Pacific | 16.1 | 13.4 | 37.0 | 1.4 | 67.9 | 67.9 | – |
North America | 158.7 | 9.8 | – | – | 168.5 | 168.5 | – |
Total goodwill and indefinite | |||||||
life intangible assets | 278.5 | 55.5 | 88.8 | 38.2 | 461.0 | 459.0 | 2.0 |
Property and | Indefinite life | ||||||
Transaction | Facilities | Investment | intangible | ||||
Advisory | Consultancy | Management | Management | Total | Goodwill | assets* | |
2023 | £m | £m | £m | £m | £m | £m | £m |
United Kingdom | 34.3 | 13.6 | 30.9 | 32.2 | 111.0 | 109.0 | 2.0 |
CEME | 62.3 | 19.3 | 20.8 | 4.7 | 107.1 | 107.1 | – |
Asia Pacific | 16.3 | 5.2 | 38.6 | 1.4 | 61.5 | 61.5 | – |
North America | 156.3 | 9.7 | – | – | 166.0 | 166.0 | – |
Total goodwill and indefinite | |||||||
life intangible assets | 269.2 | 47.8 | 90.3 | 38.3 | 445.6 | 443.6 | 2.0 |
*
Indefinite life intangible assets relate to investment management contracts.
Goodwill values have been tested for impairment by comparing them against the ‘value-in-use’ in perpetuity of the
relevant CGU group. The value-in-use calculations were based on projected cash flows, derived from latest financial
budgets and strategic plans covering a five-year period, prepared by management and approved by the Board. Cash
flows beyond this are extrapolated using perpetuity growth rates. These projected cash flows were discounted at
16.2 Key assumptions
The calculation of value-in-use is most sensitive to the following assumptions:
(a) CGU specific operating assumptions
CGU specific operating assumptions are applicable to the forecasted cash flows for the years 2025 to 2029 and
relate to revenue forecasts and underlying profit margins in each of the operating CGUs. The value ascribed to
each assumption will vary between CGUs as the forecasts are built up from the underlying business units within
each CGU group.
(b) Discount rate
Future cash flows are discounted using a pre-tax discount rate that reflects current market assessments of the
time value of money. The discount rate used in each CGU is adjusted for the risk specific to the asset, including
the countries in which cash flow will be generated, for which the future cash flow estimates have not been
adjusted. The pre-tax discount rates have been derived using a post-tax weighted average cost of capital (‘WACC’)
methodology. Key inputs to the WACC calculation are the risk-free rate, the equity market risk premium, beta, the
average borrowing rate (cost of debt) and the country specific risk premium.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
211
The risk-adjusted discount range of rates used in each region for impairment testing are as follows:
2024 |
2023 |
|
Discount rate |
Discount rate |
|
range |
range |
|
United Kingdom |
12.8% |
12.4% |
Continental Europe |
10.5% – 15.0% |
10.6% – 14.7% |
Asia Pacific |
10.8% – 15.4% |
10.4% – 15.1% |
North America |
12.1% – 12.6% |
11.7% – 12.1% |
Middle East |
12.3% |
14.0% |
(c) Perpetuity growth rates
A terminal value was calculated using perpetuity growth rates in order to forecast beyond the five years covered by
detailed forecasts. The rates are based on management’s estimate of long-term growth rates in the countries in which
the Group operates. The perpetuity growth rates used in each region for impairment testing are as follows:
2024 |
2023 |
|
Long-term |
Long-term |
|
growth rate |
growth rate |
|
range |
range |
|
United Kingdom |
1.4% |
1.5% |
Continental Europe |
0.7% – 3.1% |
0.9% – 3.1% |
Asia Pacific |
0.6% – 6.5% |
0.4% – 6.8% |
North America |
1.8% – 2.1% |
1.7% – 2.1% |
Middle East |
4.5% |
4.3% |
16.3 Sensitivity to changes in assumptions
The Indonesia CGU goodwill balance was fully impaired during the year (2024: £1.9m impairment, 2023:
£3.9m impairment).
Management have determined that there has been no impairment to the other CGUs within the Group. This
assessment is a reflection of best estimates in arriving at value-in-use, future growth rates and the discount rate
applied to cash flow projections.
The US and Australia CGUs were identified as the material CGUs that are considered to be sensitive to changes in
key assumptions, but for which no impairment charge was considered to be required at 31 December 2024.
The key assumption applied to the US CGU relates to the average underlying profit margin of 7.1% and average
revenue growth of 12.5% over the five year forecast period. The headroom in the value-in-use model for this CGU
of £192.1m (85%) would be reduced to nil if the average underlying profit margin decreased to 4.0% (assuming no
change in revenue assumptions) or the average revenue growth decreased to 7.2% (assuming variable costs changed
in proportion to the change in revenue). In the Australian CGU the key assumptions relate to the average underlying
profit margin of 4.1% and average revenue growth of 3.4% over the five year forecast period. The headroom in the
value-in-use model for this CGU of £5.2m (19%) would be reduced to nil if the average underlying profit margin
decreased to 3.2% (assuming no change in revenue assumptions) or the average revenue growth decreased to
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
212
Property, plant and equipment is stated at historical cost less accumulated depreciation and impairment.
Historical cost includes expenditure directly attributable to acquisition.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that the future economic benefits associated with the item will flow to the Group and
the cost of the item can be measured reliably.
estimated useful lives as follows:
Freehold property |
50 years |
Short leasehold property (less than 50 years) |
Lower of estimated useful life and unexpired term of lease |
Equipment and motor vehicles |
3–10 years |
Residual values and useful lives are reviewed and adjusted if appropriate at each reporting date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount
Leasehold |
Equipment and |
||
improvements |
motor vehicles |
Total |
|
£m |
£m |
£m |
|
Cost |
|||
At 1 January 2024 |
104.3 |
82.9 |
187.2 |
Additions through business combinations (Note 28) |
– |
1.5 |
1.5 |
Additions |
4.9 |
6.8 |
11.7 |
Adjustment* |
3.4 |
4.0 |
7.4 |
Reclassification to equipment* |
(8.7) |
8.7 |
– |
Reclassification to right-of-use assets* |
0.4 |
– |
0.4 |
Disposals |
(1.2) |
(2.7) |
(3.9) |
Exchange movement |
0.2 |
(1.0) |
(0.8) |
At 31 December 2024 |
103.3 |
100.2 |
203.5 |
Accumulated depreciation and impairment |
|||
At 1 January 2024 |
63.6 |
55.5 |
119.1 |
Charge for the year |
8.0 |
10.4 |
18.4 |
Adjustment* |
3.4 |
4.0 |
7.4 |
Reclassification to equipment* |
(4.4) |
4.4 |
– |
Reclassification to right-of-use assets* |
0.2 |
– |
0.2 |
Disposals |
(1.2) |
(2.4) |
(3.6) |
Exchange movement |
0.3 |
(0.6) |
(0.3) |
At 31 December 2024 |
69.9 |
71.3 |
141.2 |
Net book value |
|||
At 31 December 2024 |
33.4 |
28.9 |
62.3 |
*
Adjustments and reclassifications arise from a review of fixed asset classifications following system migrations within the Group.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
213
Freehold |
Leasehold |
Equipment and |
||
property |
improvements |
motor vehicles |
Total |
|
£m |
£m |
£m |
£m |
|
Cost |
||||
At 1 January 2023 |
0.1 |
104.8 |
86.7 |
191.6 |
Additions through business combinations |
– |
0.1 |
0.2 |
0.3 |
Additions |
– |
8.9 |
8.5 |
17.4 |
Reclassification to equipment and motor vehicles |
– |
(1.2) |
1.2 |
– |
Reclassification to right-of-use-assets |
– |
– |
(0.3) |
(0.3) |
Disposals |
(0.1) |
(6.0) |
(10.6) |
(16.7) |
Exchange movement |
– |
(2.3) |
(2.8) |
(5.1) |
At 31 December 2023 |
– |
104.3 |
82.9 |
187.2 |
Accumulated depreciation and impairment |
||||
At 1 January 2023 |
– |
58.0 |
56.6 |
114.6 |
Charge for the year |
– |
9.0 |
9.6 |
18.6 |
Disposals |
– |
(2.4) |
(8.9) |
(11.3) |
Exchange movement |
– |
(1.0) |
(1.8) |
(2.8) |
At 31 December 2023 |
– |
63.6 |
55.5 |
119.1 |
Net book value |
||||
At 31 December 2023 |
– |
40.7 |
27.4 |
68.1 |
The Group enters into lease agreements for the use of buildings, equipment and motor vehicles. Lease terms are
negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements
do not impose any covenants other than the security interests in the leased assets that are held by the lessor.
Leased assets may not be used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding lease liability for future lease payables at the
date at which the leased asset is available for use by the Group. Depreciation of the right-of-use asset will be
recognised in the income statement on a straight-line basis, with interest recognised on the lease liability.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the
net present value of the following lease payments:
§
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
§
variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the
commencement date;
§
amounts expected to be payable by the Group under residual value guarantees;
§
the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
§
payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the
liability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being
the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
214
18. Leases
continued
Material accounting policies that apply to leases
continued
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which
are not included in the lease liability until they take effect. When adjustments to lease payments based on an index
or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Lease payments are allocated between principal and interest cost. The finance cost is charged to the income
statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance
of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
§
the amount of the initial measurement of lease liability;
§
any lease payments made at or before the commencement date less any lease incentives received;
§
any initial direct costs; and
§
restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on
a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. An asset’s carrying amount is written down immediately to
its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Payments associated with short-term leases of equipment and vehicles and all leases of low value assets are
recognised on a straight-line basis as an expense in the income statement. Short-term leases are leases with a
lease term of 12 months or less. Low-value assets comprise IT equipment and small items of office furniture.
Extension and termination options are included in a number of property and equipment leases across the Group.
These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operations.
The majority of extension and termination options held are exercisable only by the Group and not by the
respective lessor.
Sub-leases
The Group sometimes enters into sub-lease agreements where the underlying asset is sub-let to a third-party sub-
lessee. In a sublease transaction, the lease between the original lessee and lessor (the head lease) remains in effect.
The Group classifies the sub-lease at lease inception as a finance lease or operating lease based on the extent to
which risks and rewards incidental to ownership of the underlying asset lie with the lessor or the lessee.
The Group’s sub-leases are all classified as finance leases. The Group therefore derecognises the original right-of-use
asset relating to the head lease and continues to account for the original lease liability as it did before commencement
of the sublease. A receivable for the net investment in sub-lease is recognised and evaluated for impairment annually.
Finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on
the net investment in sub-lease.
Any difference between the right-of-use asset and the net investment in the sublease is recognised in the Income
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
215
In determining the lease term, management considers all facts and circumstances that create an economic incentive
to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
The judgements made impact the value of the right-of-use assets and lease liabilities recognised in the statement
of financial position upon initial recognition of a lease.
The assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this
18.1 Right-of-use assets
Leasehold | Equipment and | Total right-of-use | |
properties | motor vehicles | assets | |
£m | £m | £m | |
Cost | |||
At 1 January 2024 | 366.6 | 14.7 | 381.3 |
Additions | 19.7 | 4.3 | 24.0 |
Additions through business combinations (Note 28) | 1.7 | – | 1.7 |
Reclassification from leasehold improvements | (0.4) | – | (0.4) |
Lease modifications | 14.4 | – | 14.4 |
Disposals (including disposals relating to sub-lets) | (24.1) | (3.3) | (27.4) |
Exchange movement | (4.1) | (0.9) | (5.0) |
At 31 December 2024 | 373.8 | 14.8 | 388.6 |
Accumulated depreciation and impairment | |||
At 1 January 2024 | 175.7 | 7.3 | 183.0 |
Charge for the year | 48.0 | 3.8 | 51.8 |
Disposals (including disposals relating to sub-lets) | (23.6) | (3.2) | (26.8) |
Reclassification from leasehold improvements | (0.2) | – | (0.2) |
Exchange movement | (2.0) | (0.2) | (2.2) |
At 31 December 2024 | 197.9 | 7.7 | 205.6 |
Net book value | |||
At 31 December 2024 | 175.9 | 7.1 | 183.0 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
216
18. Leases
continued
18.1 Right-of-use assets
continued
Leasehold | Equipment and | Total right-of-use | |
properties | motor vehicles | assets | |
£m | £m | £m | |
Cost | |||
At 1 January 2023 | 368.6 | 8.5 | 377.1 |
Additions | 28.0 | 4.2 | 32.2 |
Additions through business combinations | 0.5 | – | 0.5 |
Lease modifications | 8.5 | – | 8.5 |
Transfers | (3.6) | 3.9 | 0.3 |
Disposals (including disposals relating to sub-lets*) | (25.1) | (1.7) | (26.8) |
Exchange movement | (10.3) | (0.2) | (10.5) |
At 31 December 2023 | 366.6 | 14.7 | 381.3 |
Accumulated depreciation and impairment | |||
At 1 January 2023 | 148.4 | 4.9 | 153.3 |
Charge for the year | 47.6 | 3.4 | 51.0 |
Disposals (including disposals relating to sub-lets*) | (14.6) | (1.8) | (16.4) |
Transfers | (1.0) | 1.0 | – |
Exchange movement | (4.7) | (0.2) | (4.9) |
At 31 December 2023 | 175.7 | 7.3 | 183.0 |
Net book value | |||
At 31 December 2023 | 190.9 | 7.4 | 198.3 |
*
Upon de-recognition of the right-of-use asset in relation to sub-let space, a net investment in a sublease has been recognised as an asset on the Group’s
statement of financial position (£12.3m). The difference between this net investment, the carrying value of the right-of-use asset disposed of (£8.3m), has been
recognised as a £4.0m gain on disposal in the Group’s profit and loss in the year ended 31 December 2023. The lease liability in relation to the head lease is
retained in the Group’s statement of financial position.
18.2 Lease liabilities
2024 | 2023 | |
£m | £m | |
At 1 January | 254.2 | 277.6 |
Additions | 24.9 | 32.2 |
Lease modifications | 14.4 | 8.5 |
Additions through business combinations (Note 28) | 1.7 | 0.4 |
Transfers from accruals | – | 0.3 |
Disposal of leases | (0.4) | (2.6) |
Repayments of lease liabilities | (68.7) | (63.9) |
Unwinding of discount | 9.1 | 9.2 |
Exchange movement | (2.1) | (7.5) |
Closing amount as at 31 December | 233.1 | 254.2 |
Current | 49.7 | 52.9 |
Non-current | 183.4 | 201.3 |
Cash outflows with respect to leases, which includes short-term lease payments, totalled £69.3m (2023: £65.1m). Refer
to Note 9 for information on the amount charged to the income statement with respect to short-term and variable
lease payments.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
217
18.3 Net investment in sub-leases
The Group sub-leases office space. Sub-lease receivables (net investment in sub-lease) amount to £11.2m as
at 31 December 2024 (31 December 2023: £12.3m), split between non-current of £9.5m and current of £1.7m
(31 December 2023: non-current £10.3m, current £2.0m). The current balance is included in other receivables.
The future lease payments receivable are as follows:
2024 | 2023 | |
£m | £m | |
Less than a year | 2.0 | 2.0 |
Between 1 and 2 years | 1.7 | 1.8 |
Between 2 and 3 years | 1.7 | 1.6 |
Between 3 and 4 years | 1.7 | 1.6 |
Between 4 and 5 years | 1.8 | 1.6 |
Over 5 years | 3.0 | 4.6 |
Total undiscounted cash flows | 11.9 | 13.2 |
Discounting | (0.7) | (0.9) |
Carrying value of net investment in sub-lease | 11.2 | 12.3 |
Joint ventures | Associates | |||
Investment | ||||
Investment | (including loans) | Goodwill | Total | |
£m | £m | £m | £m | |
Cost or valuation | ||||
At 1 January 2024 | 10.6 | 2.5 | 3.6 | 6.1 |
Additions | 0.3 | – | – | – |
Reclassification to associate | (0.5) | 0.5 | – | 0.5 |
Fair value re-measurement prior to | ||||
subsidiary acquisition | – | 4.4 | – | 4.4 |
Transfer upon subsidiary acquisition (Note 28) | – | (5.6) | – | (5.6) |
Impairment | – | (0.2) | – | (0.2) |
Disposals | (0.1) | – | – | – |
Exchange movement | (0.1) | 0.1 | – | 0.1 |
At 31 December 2024 | 10.2 | 1.7 | 3.6 | 5.3 |
Share of profit | ||||
At 1 January 2024 | 16.7 | 5.5 | – | 5.5 |
Group’s share of profit from continuing operations | 7.0 | 0.5 | – | 0.5 |
Dividends received | (4.2) | (2.8) | – | (2.8) |
Exchange movement | 0.4 | (0.2) | – | (0.2) |
At 31 December 2024 | 19.9 | 3.0 | – | 3.0 |
Total | ||||
At 31 December 2024 | 30.1 | 4.7 | 3.6 | 8.3 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
218
19. Investments in joint ventures and associates
continued
Joint ventures | Associates | |||
Investment | ||||
Investment | (including loans) | Goodwill | Total | |
£m | £m | £m | £m | |
Cost or valuation | ||||
At 1 January 2023 | 11.0 | 2.5 | 0.4 | 2.9 |
Additions | 0.5 | – | 3.2 | 3.2 |
Disposals | (0.3) | – | – | – |
Exchange movement | (0.6) | – | – | – |
At 31 December 2023 | 10.6 | 2.5 | 3.6 | 6.1 |
Share of profit | ||||
At 1 January 2023 | 18.5 | 4.6 | – | 4.6 |
Group’s share of profit from continuing operations | 7.7 | 2.5 | – | 2.5 |
Dividends received | (8.6) | (1.4) | – | (1.4) |
Exchange movement | (0.9) | (0.2) | – | (0.2) |
At 31 December 2023 | 16.7 | 5.5 | – | 5.5 |
Total | ||||
At 31 December 2023 | 27.3 | 8.0 | 3.6 | 11.6 |
In the opinion of the Directors, the Group does not have any joint ventures or associates that are individually material
to the results of the Group.
On 31 December 2023, the Group converted loans to additional equity in Vucity Limited. This investment was
previously classified as a FVOCI investment. Following the loan conversion, the Group’s equity investment in Vucity
Limited increased to 29.68% resulting in the treatment of this investment as an associate, with £3.2m recognised as
an addition in the year.
The Group has one associate and one joint venture with net liabilities as at 31 December 2024 (2023: one joint
venture and two associates), restricting the ability of these entities to transfer funds to its Shareholders in the
form of dividends. The associate and joint venture have no significant liabilities to which the Group is exposed, nor
has the Group any significant contingent liabilities or capital commitments in relation to its interests in the joint
ventures and associates.
The Group has made an irrevocable election at initial recognition for equity investments to be classified as
FVOCI (fair value through other comprehensive income). Changes in fair value are recognised through other
comprehensive income rather than profit or loss. Dividends from these investments are recognised in profit or
loss as other operating income. When such investments are disposed or become impaired, the accumulated
gains and losses, recognised in other comprehensive income, are reclassified to retained earnings and will not
be recycled to the income statement.
The Group holds loans and other debt like financial instruments at fair value with changes in fair value recognised
through profit or loss. Any gains or losses that arise when such instruments are disposed are recognised in
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
219
Material accounting policies that apply to investments and derivative financial instruments
continued
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at fair value. Changes in the fair value of the Group’s derivative instruments are
recognised immediately in the income statement.
Level 1 –
uses quoted active market prices.
Level 2 –
uses observable inputs other than quoted active market prices.
The fair value of derivative financial instruments relating to forward foreign exchange contracts are determined
by using valuation techniques using observable market data.
Gains and losses on forward foreign exchange contracts are recognised in net foreign exchange gains and
losses in the income statement.
Level 3 –
uses inputs that are not based on observable market data, such as internal models or other
valuation methods.
Financial assets held at FVOCI (unlisted equity investments) included in Level 3 fall under two categories.
The first, where cost has been determined as the best approximation of fair value. Cost is considered the best
approximation of fair value in these instances either due to insufficient more recent information being available
and/or there being a wide range of possible fair value measurements due to the nature of the investments
and cost is considered the best estimate of fair value within the range. The second, where management have
determined the fair value of the unlisted equity security based upon the latest trading performance of the
investments, cash flow forecasts of the investments and applying these to a discounted cash flow valuation
and/or considering evidence from recent fundraising initiatives undertaken.
Financial assets held at FVPL included in Level 3 fall under two categories. The first, where the fair value of
investment funds is based on underlying asset values determined by the Fund Manager’s quarterly financial
statements. The second, where management have determined the fair value of convertible loans based upon the
latest trading performance of the equity investments and cash flow forecasts of the investments and applying
20.1 Categories of financial instruments
Financial | ||||||||
Financial | assets at | Total | ||||||
Financial | Financial | assets at | Total | Financial | Financial | amortised | carrying | |
assets at | assets at | amortised | carrying | assets at | assets at | cost | amount | |
FVPL | FVOCI | cost | amount | FVPL | FVOCI | 2023 | 2023 | |
£m | 2024 | 2024 | 2024 | 2024 | 2023 | 2023 | restated* | restated* |
Financial assets: | ||||||||
Financial assets at FVOCI | – | 4.6 | – | 4.6 | – | 5.0 | – | 5.0 |
Financial assets at FVPL | 27.3 | – | – | 27.3 | 38.5 | – | – | 38.5 |
Trade and other receivables | – | – | 684.1 | 684.1 | – | – | 625.7 | 625.7 |
Derivative financial instruments | 0.3 | – | – | 0.3 | 1.0 | – | – | 1.0 |
Cash and cash equivalents | – | – | 536.5 | 536.5 | – | – | 506.6 | 506.6 |
Total financial assets | 27.6 | 4.6 | 1,220.6 | 1,252.8 | 39.5 | 5.0 | 1,132.3 | 1,176.8 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
220
20. Investments and derivative financial instruments
continued
20.1 Categories of financial instruments
continued
Financial | ||||||
Financial | liabilities at | Total | ||||
Financial | liabilities at | Total | Financial | amortised | carrying | |
liabilities | amortised | carrying | liabilities | cost | amount | |
at FVPL | cost | amount | at FVPL | 2023 | 2023 | |
£m | 2024 | 2024 | 2024 | 2023 | restated* | restated* |
Financial liabilities: | ||||||
Borrowings | – | 160.9 | 160.9 | – | 157.2 | 157.2 |
Overdrafts in notional pooling | ||||||
arrangements | – | 199.3 | 199.3 | – | 192.3 | 192.3 |
Lease liabilities | – | 233.1 | 233.1 | – | 254.2 | 254.2 |
Trade and other payables | 2.3 | 352.9 | 355.2 | – | 298.5 | 298.5 |
Derivative financial instruments | 13.9 | – | 13.9 | 5.7 | – | 5.7 |
Total financial liabilities | 16.2 | 946.2 | 962.4 | 5.7 | 902.2 | 907.9 |
*
2023 has been restated due to the prior year restatement included in Note 28 as well as a recalculation of the Group’s financial assets included within trade
and other receivables and the Group’s financial liabilities included within trade and other payables.
Level 2 | Level 3 | Total | |
2024 | £m | £m | £m |
Assets | |||
Financial assets at FVOCI | |||
– Unlisted equity investments | – | 4.6 | 4.6 |
Financial assets at FVPL | – | 27.3 | 27.3 |
Derivative financial instruments | 0.3 | – | 0.3 |
Total assets | 0.3 | 31.9 | 32.2 |
Liabilities | |||
Deferred consideration | – | 2.3 | 2.3 |
Derivative financial instruments | 1.3 | 12.6 | 13.9 |
Total liabilities | 1.3 | 14.9 | 16.2 |
Level 2 | Level 3 | Total | |
2023 | £m | £m | £m |
Assets | |||
Financial assets at FVOCI | |||
– Unlisted equity investments | – | 5.0 | 5.0 |
Financial assets at FVPL | – | 38.5 | 38.5 |
Derivative financial instruments | 1.0 | – | 1.0 |
Total assets | 1.0 | 43.5 | 44.5 |
Liabilities | |||
Derivative financial instruments | – | 5.7 | 5.7 |
Total liabilities | – | 5.7 | 5.7 |
The gross notional principal amounts of the outstanding forward foreign exchange contracts at 31 December 2024
were £135.4m (2023: £107.9m). All contracts mature within one year and are classed as current.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
221
The following table presents the changes in Level 3 financial (liabilities)/assets for the period ended 31 December 2024:
Contingent | Derivative | Financial | Financial | |
deferred | financial | assets at | assets at | |
£m | consideration | instruments | FVOCI | FVPL |
Opening balance 1 January 2024 | – | (5.7) | 5.0 | 38.5 |
Additions | (1.0) | (8.4) | – | 6.1 |
Reclassification | (1.0) | – | – | – |
Disposals | – | – | (0.3) | (0.7) |
Settlement | 0.4 | 4.4 | – | – |
Reversal of impairment | – | – | 0.1 | – |
Eliminated upon consolidation | – | – | – | (14.6) |
Re-measurement | (0.8) | (2.8) | (0.1) | (1.1) |
Exchange movement | 0.1 | (0.1) | (0.1) | (0.9) |
Closing balance 31 December 2024 | (2.3) | (12.6) | 4.6 | 27.3 |
The derivative financial liabilities classified as Level 3 relate to put and call options, the fair value of which is derived
from management’s best estimate of the average EBITDA forecast of the relevant businesses. Subsequent to initial
recognition, gains and losses on these options are recognised in operating profits in the income statement.
Derivative financial liabilities as at 31 December 2024 include:
§
A call option on the Savills IM Holdings Limited group. Under this agreement Samsung Life (29% non-controlling
interest holder) has the option to increase its interest by up to 6%. The option is exercisable within 30 days from
31 December 2025 and is dependent upon the quantum and timing of the provision of capital to Savills Investment
Management’s investment products. This option is classed as non-current.
§
A put and call option on the remaining 20% of Absolute Maintenance Services Pte Limited and Solute Pte Limited
(‘AMS’), exercisable in 2027. This option is classified as non-current. During the year, the Group acquired an
additional 20% of AMS under the first tranche of the put and call option.
§
A put and call option for the remaining 40% shareholding in LCA Core Sdn Bhd Group (‘LCA’), exercisable in
2026. The charge upon initial recognition of the option has been recognised in reserves. The option is classified as
non-current.
§
A put and call option for the remaining 45% shareholding in Savills Property Services (India) Private Limited (‘Savills
India’), exercisable in five tranches between 2029 and 2034. The charge upon recognition of the liability has been
Financial assets at FVOCI comprise the following individual equity investments:
2024 | 2023 | |
£m | £m | |
Unlisted securities | ||
Andor Holdco Limited | 1.7 | 1.7 |
Income Analytics Limited | 1.2 | 1.2 |
Thirdfort Limited | 0.2 | 0.3 |
Home Click Pte Limited | 0.2 | 0.2 |
Other smaller investments | 1.3 | 1.6 |
4.6 | 5.0 |
In the prior year, the Group disposed of its investments in YOPA Property Limited, Daishin GK Canal and OnTheMarket
plc. Upon disposal, amounts in the revaluation reserve relating to these investments have been recycled to retained
earnings. In the prior year, the Group acquired shareholdings in Andor Holdco Limited (the parent company of YOPA
Property Limited) and increased its shareholding in Vucity Limited, with this investment subsequently being treated as
an associate (refer to Note 19).
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
222
20. Investments and derivative financial instruments
continued
20.3 Financial assets at FVOCI
continued
Equity investments at FVOCI are denominated in the following currencies:
2024 | 2023 | |
£m | £m | |
Sterling | 3.1 | 3.4 |
Japanese yen | 0.6 | 0.6 |
Other | 0.9 | 1.0 |
4.6 | 5.0 |
2024 | 2023 | |
£m | £m | |
Convertible loans | – | 15.1 |
Instruments held in investment funds | 27.3 | 23.4 |
27.3 | 38.5 |
Convertible loans relate to compulsory convertible cumulative preference shares (‘CCPS’) and compulsory convertible
debentures (‘CCD’) issued by Savills Property Services (India) Private Limited. These loans are held at FVPL (see Note 20
for further details on fair value measurement). The CCPS issued in 2019 were converted in August 2024 leading to Savills
Property Services (India) Private Limited becoming a subsidiary of the Group. Upon consolidation of Savills Property
Services (India) Private Ltd, the CCDs are eliminated as an intercompany balance.
At 31 December, the Group held the following conditional commitments to co-invest in a number of Savills Investment
Management funds:
2024 | 2023 | |
£m | £m | |
Asia Pacific Income and Growth Fund FCP-RAIF | 0.5 | 1.0 |
Savills IM UK Value Boxes Fund FCP-RAIF | 2.3 | 2.3 |
DRC European Real Estate Debt Fund IV LP | 0.9 | 1.2 |
Vestas European Strategic Allocation Logistics Fund II | – | 2.9 |
Simply Affordable Homes 2 LP | 0.7 | – |
Savills IM UK Build to Rent Fund FCP-RAIF | 0.3 | 1.7 |
Savills IM European Urban Logistics & Industrial Fund FCP-RAIF | 1.2 | 2.8 |
Savills IM European Living Fund FCP-RAIF | 0.5 | 1.2 |
6.4 | 13.1 |
Trade receivables are recognised initially at their transaction price and subsequently measured at amortised cost
less provision for impairment. Receivables are discounted where the time value of money is material.
The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which
permits the use of the lifetime expected loss provision for all trade receivables and contract assets. These
estimates are based on historic credit loss experience, adjusted for forward-looking factors specific to the debtors
and macro-economic and specific country-risk considerations with higher default rates applied to older balances.
In addition, if specific circumstances exist which would indicate that the receivable is irrecoverable then a specific
provision is made. A provision is made against trade receivables and contract assets until such time as the Group
believes there to be no reasonable expectation of recovery, after which the trade receivable or contract asset
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
223
Provisions for impairment of trade receivables have been made. In reviewing the appropriateness of these
provisions, consideration has been given to the ageing of the debt and the potential likelihood of default, taking into
account current and future economic conditions. Impairment analysis is performed by local management using a
provision matrix to measure the expected credit losses, which is based on historical credit loss experience adjusted
2023 |
||
2024 |
restated* |
|
£m |
£m |
|
Non-current |
||
Trade receivables |
10.7 |
10.4 |
Other receivables |
8.7 |
9.8 |
Other assets |
43.7 |
38.8 |
Net investment in sub lease (Note 18.3) |
9.5 |
10.3 |
72.6 |
69.3 |
|
Current |
||
Trade receivables |
542.6 |
496.0 |
Less: loss allowance/impairment of receivables provision |
(22.5) |
(19.6) |
Trade receivables – net |
520.1 |
476.4 |
Other receivables |
70.8 |
72.0 |
Prepayments |
57.1 |
54.5 |
Accrued income |
70.9 |
53.8 |
718.9 |
656.7 |
*
See Note 28 for details on the prior year restatement.
The carrying value of the above receivables is approximate to their fair value.
There is no concentration of credit risk with respect to trade and other receivables as the Group has a large number of
clients internationally dispersed with no individual client owing a significant amount. The credit quality of receivables is
managed at a local subsidiary level on a regular basis. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of receivables mentioned above. The Group does not hold any collateral as security.
contractual clawback period.
entities that the Group recognises as financial assets held at FVOCI (2023: £1.4m) and insurance receivable assets of
and loans due from other parties. Loans due from other parties include loans of £0.5m receivable from joint ventures
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
224
21. Trade and other receivables
continued
The carrying amounts of the Group’s gross current trade receivables are denominated in the following currencies:
2023 | ||
2024 | restated* | |
£m | £m | |
Sterling | 213.4 | 212.9 |
Euro | 98.1 | 82.2 |
Hong Kong dollar | 38.9 | 40.6 |
US dollar | 66.0 | 55.5 |
Australian dollar | 23.4 | 24.2 |
Chinese renminbi | 36.0 | 34.1 |
Other** | 66.8 | 46.5 |
542.6 | 496.0 |
*
See Note 28 for details on the prior year restatement.
**
Other currencies include Czech koruna, United Arab Emirates dirham, Bahraini dinar, Egyptian pound, Omani rial, Saudi riyal, South Korean won, Singapore
dollar, Japanese yen, New Zealand dollar, Indonesian rupiah, Philippine peso, Malaysian ringgit, Macau pataca, New Taiwan dollar, Thai baht, Polish zloty,
Swedish krona, Indian rupee, New Zealand dollar, Vietnamese dong and Canadian dollar.
With the exception of trade receivables, the other classes within trade and other receivables do not contain material
allowances for impairment. Accrued income and contract assets are measured net of lifetime expected credit losses
using a provision matrix similar to trade receivables.
With respect to trade receivables, an allowance for impairment is made based on historical credit loss experience
adjusted for forward-looking factors specific to the debtors and economic environment, as evidence of a likely
reduction in the recoverability of the cash flows. Local management have assessed the expected credit losses for
trade receivables in the current geopolitical and economic environment and the expected loss rates have been
reviewed based on their judgement as to the impact on their trade receivables portfolio. In addition, certain customers
have been identified as having a significantly elevated risk and have been provided for on a specific basis. Overall,
the expected loss rate on trade receivables has remained stable at 4.1% (31 December 2023: 4.0%).
as follows:
More than | More than | More than | More than | |||
30 days | 60 days | 90 days | 180 days | |||
2024 | Current | past due | past due | past due | past due | Total |
Expected loss rate | 0.3% | 0.4% | 3.1% | 7.0% | 45.2% | 4.1% |
Gross carrying amount (£m) | 398.1 | 48.7 | 29.1 | 25.8 | 40.9 | 542.6 |
Loss allowance provision (£m) | (1.1) | (0.2) | (0.9) | (1.8) | (18.5) | (22.5) |
More than | More than | More than | More than | |||
30 days | 60 days | 90 days | 180 days | |||
2023 restated* | Current | past due | past due | past due | past due | Total |
Expected loss rate | 0.3% | 0.5% | 2.1% | 6.4% | 45.9% | 4.0% |
Gross carrying amount (£m) | 364.8 | 43.6 | 24.3 | 28.2 | 35.1 | 496.0 |
Loss allowance provision (£m) | (1.0) | (0.2) | (0.5) | (1.8) | (16.1) | (19.6) |
*
See Note 28 for details on the prior year restatement.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
225
The loss allowance provision for trade receivables as at 31 December reconciles to the opening loss allowance
provision as follows:
2024 |
2023 |
|
£m |
£m |
|
At 1 January |
(19.6) |
(24.1) |
Increase in loss allowance recognised in the income statement during the period |
(7.6) |
(0.7) |
Receivables written off during the year as uncollectible |
4.3 |
3.9 |
Foreign exchange |
0.4 |
1.3 |
At 31 December |
(22.5) |
(19.6) |
Cash and cash equivalents include cash in hand and deposits held on call with banks, together with other short-term
highly liquid investments with original maturities of three months or less, that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents include cash
balances that are operated within a notional cash pooling arrangement, together with overdraft balances, which are
presented separately in current liabilities in the statement of financial position when IAS 32 offsetting requirements
are not met. Bank overdrafts are included under borrowings in the statement of financial position.
For the purpose of the consolidated statement of cash flows, cash and cash equivalents, as defined above, are net
of overdraft balances within the notional cash pooling arrangement and outstanding bank overdrafts as they are
2023 |
||
2024 |
restated* |
|
£m |
£m |
|
Cash at bank and in hand |
427.5 |
416.3 |
Short-term bank deposits |
109.0 |
90.3 |
536.5 |
506.6 |
*
See Note 28 for details on the prior year restatement.
The carrying value of cash and cash equivalents approximates their fair value.
The effective interest rate on short-term bank deposits as at 31 December 2024 was 3.72% (2023: 4.86%); these
deposits have an average maturity of 35 days (2023: 29 days).
relation to property management contracts and cash remittance restrictions in certain countries. These amounts
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
226
22. Cash and cash equivalents
continued
Cash and cash equivalents are denominated in the following currencies:
2023 | ||
2024 | restated* | |
£m | £m | |
Sterling | 237.8 | 223.8 |
Hong Kong dollar | 98.7 | 96.4 |
Euro | 60.1 | 55.6 |
Chinese renminbi | 33.1 | 40.0 |
US dollar | 12.8 | 11.0 |
Japanese yen | 16.8 | 12.9 |
Australian dollar | 8.5 | 7.7 |
South Korean won | 9.2 | 9.1 |
Singapore dollar | 10.7 | 11.3 |
Other currencies** | 48.8 | 38.8 |
536.5 | 506.6 |
*
See Note 28 for details on the prior year restatement.
**
Other currencies include United Arab Emirates dirham, Omani rial, Egyptian pound, Saudi riyal, Bahrain dinar, Canadian dollar, Czech koruna, New Taiwan
dollar, Macau pataca, Thai baht, Vietnamese dong, New Zealand dollar, Indonesian rupiah, Malaysian ringgit, Indian rupee, Danish krone, Polish zloty,
Swiss franc and Swedish krona.
22.1 Notional pooling arrangement
For internal cash management purposes, the Group maintains a notional cash pooling arrangement with Barclays Bank
PLC, whereby credit and debit cash balances for the participating bank accounts are notionally offset. There is no
overdraft cost or charge associated with any pooled overdraft that is fully offset by pooled credit cash balances. As at
31 December 2024, the notional cash pooling arrangement included cash balances of £200.2m presented in cash and
cash equivalents (31 December 2023: £193.3m) and overdrafts of £199.3m (31 December 2023: £192.3m) presented in
current liabilities. This represents as at 31 December 2024 surplus pooled credit cash balances of £0.9m (31 December
2023: surplus pooled credit cash £1.0m).
2023 | ||
2024 | restated* | |
£m | £m | |
Cash and cash equivalents | 536.5 | 506.6 |
Overdrafts in notional pooling arrangement | (199.3) | (192.3) |
Bank overdrafts (see Note 24) | (9.8) | (4.2) |
327.4 | 310.1 |
*
Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the
effective interest rate method. Trade payables and other payables are classified as current liabilities if payment is due
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
227
2023 | ||
2024 | restated* | |
£m | £m | |
Non-current | ||
Deferred consideration | 3.1 | 1.4 |
Accruals – relating to deferred and contingent business | ||
acquisition payments linked to employment conditions | 7.1 | 3.6 |
Other payables | 4.6 | 5.4 |
14.8 | 10.4 | |
Current | ||
Deferred consideration | 0.9 | 1.8 |
Trade payables | 141.0 | 107.1 |
Other taxation and social security | 61.7 | 65.5 |
Other payables | 59.8 | 57.2 |
Accruals | 466.3 | 450.9 |
729.7 | 682.5 |
*
See Note 28 for details on the prior year restatement.
The carrying value of trade and other payables is approximate to their fair value.
Deferred consideration relates to deferred business acquisition payments not linked to continuing employment.
relating to deferred and contingent business acquisition payments that are linked to employment conditions of £1.2m
of £20.5m (2023: £18.5m), amounts owed to clients with respect to cash held on their behalf of £22.8m (2023: £24.1m)
and loans payable to associates of £0.2m (2023: £0.2m).
23.1 Liabilities under supplier finance arrangements
The Group has supplier finance arrangements within the business in Spain. Participation in these arrangements is at
the suppliers’ own discretion. Suppliers that participate in the supplier finance arrangement will receive early payment
on invoices sent to the business from the external finance providers. If suppliers choose to receive early payment, they
pay a fee to the finance provider, to which the Group is not party. In order for the finance provider to pay the invoices,
the goods must have been received or supplied and the invoices approved by the business. Payments to suppliers
ahead of the invoice due date are processed by the finance providers and, in the majority of cases, the business settles
the original invoice by paying the finance providers in line with the original invoice maturity date. Payment terms with
suppliers have not been renegotiated in conjunction with these arrangements. The Group provides no security to the
finance provider.
All trade payables subject to the supplier finance arrangement are included in trade and other payables in the
consolidated statement of financial position.
All amounts are presented within trade and other payables.
2024 | |
£m | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities presented within trade payables | 13.9 |
– of which suppliers have received payment from the finance provider | 5.3 |
Range of payment due dates | |
Liabilities under supplier finance arrangement | 30–90 days after invoice date |
Comparable trade payables that are not part of the supplier finance arrangement | 30–90 days after invoice date |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
228
Interest-bearing bank loans, loan notes and overdrafts are initially measured at fair value, net of transaction costs
2024 | 2023 | |
£m | £m | |
Non-current | ||
Unsecured bank loans | – | 0.1 |
Loan notes | 120.0 | 150.0 |
Transaction costs (issuance of loan notes and RCF arrangement fees) | (0.4) | (0.8) |
119.6 | 149.3 | |
Current | ||
Bank overdrafts | 9.8 | 4.2 |
Unsecured bank loans due within one year or on demand | 1.5 | 3.0 |
Loan notes due within one year or on demand | 30.0 | 0.7 |
41.3 | 7.9 | |
160.9 | 157.2 |
As at 31 December 2024, the Group held a £360.0m multi-currency revolving credit facility (‘RCF’), which included
an additional £90.0m accordion facility, expiring in June 2026. As at 31 December 2024 none (2023: none) of the
RCF was drawn. On 20 February 2025, the £360.0m RCF was cancelled and replaced with a new £360.0m RCF,
which has an initial 4-year term (with two 1-year extension options) and can be increased by an additional £90.0m
accordion facility.
The unsecured bank loans reflect a £0.9m working capital loan in Thailand, which is repayable on demand and
denominated in Thai baht (2023: £0.9m), and £0.6m of loans in Singapore, denominated in Singapore dollar (2023:
£0.8m). The loans in Singapore include a £0.1m bank loan maturing within one year and a £0.5m factoring facility
maturing within one year.
Non-current loan notes reflect the £150.0m of debt held by the Group through the issuance of 7, 10 and 12 year fixed-
rate private note placements in the US institutional market, which were issued in June 2018. £30.0m is repayable in
June 2025.
Movements in borrowings are analysed as follows:
2024 | 2023 | |
£m | £m | |
Opening amount as at 1 January | 157.2 | 159.7 |
Additional borrowings (including overdraft movement)* | 90.3 | 107.2 |
Repayments of borrowings (including overdraft movement)* | (88.2) | (109.9) |
Addition through business combination | 1.3 | – |
Amortisation of transaction costs | 0.4 | 0.6 |
Foreign exchange | (0.1) | (0.4) |
Closing amount as at 31 December | 160.9 | 157.2 |
*
2024 includes a £5.1m increase in overdraft balances within additional borrowings and £0.8m increase in repayments of borrowings. 2023 includes £1.5m
increase in overdraft balances.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
The carrying value of the Group’s borrowings exposed to interest rate changes at the reporting date is:
2024 | 2023 | |
£m | £m | |
Less than 1 year | 11.1 | 6.9 |
11.1 | 6.9 |
The Group’s remaining borrowings are fixed rate instruments and therefore excluded from the above analysis.
The effective interest rates at the reporting date were as follows:
2024 | 2023 | |
% | % | |
Bank overdrafts | 5.52 | 5.96 |
Bank loans | 5.80 | 6.95 |
Loan notes | 3.16 | 3.15 |
The carrying amounts of borrowings are materially approximate to their fair value, with the exception of the Group’s
long-term fixed rate private note placements. The fair value of these loan notes as at 31 December 2024 is £136.7m
(31 December 2023: £135.6m). The difference between the fair value and the book value is not recognised in the
reported results for the year. The fair value has been calculated based upon a discounted cash flow valuation utilising
observable market rates of borrowing that are comparable to the remaining length of the loan notes. The valuation
technique falls within Level 2 of the fair value hierarchy in IFRS 13.
The carrying amounts of the Group’s borrowings are denominated in the following currencies:
2024 | 2023 | |
£m | £m | |
Sterling | 158.9 | 153.4 |
Indonesian rupiah | – | 1.4 |
Singapore dollar | 0.6 | 1.5 |
Other | 1.4 | 0.9 |
160.9 | 157.2 |
The Group has the following undrawn borrowing facilities:
| 2024 | 2023 | |||||
Fixed | Floating | Total | Fixed | Floating | Total | |
£m | £m | £m | £m | £m | £m | |
Expiring within 1 year or on demand | 0.1 | 61.2 | 61.3 | 3.0 | 58.8 | 61.8 |
Expiring between 1 and 5 years | – | 360.0 | 360.0 | 0.2 | 360.0 | 360.2 |
0.1 | 421.2 | 421.3 | 3.2 | 418.8 | 422.0 | |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
230
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event,
it is probable that the Group will be required to settle that obligation and the amount has been reliably estimated.
Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the
reporting date and are discounted to present value where the effect is material, with the unwinding of the discount
included in finance costs.
Professional indemnity claims
These arise from various legal actions, proceedings and other claims that are pending against the Group and
are based on management’s best estimates of the most likely outcome, taking into account the opinions of legal
counsel. The non-current portion of these provisions is expected to be utilised within the next two to five years.
Provisions on professional indemnity claims are recognised when it is probable that the Group will be required
to settle claims against it as a result of a past event and the amount of the obligation can be reliably estimated.
The Group recognises a provision based on the expected settlement amount for the claim, based on management’s
best estimate and taking into account opinions of legal counsel. The nature of the amounts provided in respect
of legal actions, proceedings and other claims is such that the extent and timing of cash flows can be difficult to
estimate and the ultimate liability may vary from the amounts provided.
A separate receivable from insurers in relation to professional indemnity claims is recognised to the extent it is
virtually certain of being received. This receivable is recognised within other receivables.
Dilapidation provisions
The Group is required to perform dilapidation repairs and restore properties to agreed specifications on leased
properties prior to the properties being vacated at the end of their lease term. Provision for such cost is made
where a legal obligation is identified and the liability can be reasonably quantified. The provisions are reviewed
on an annual basis for changes in cost estimates. These amounts are based on management’s best estimates of
repair and restoration costs at a future date and therefore a degree of uncertainty exists over the value of future
cash outflows, given that these are subject to repair and restoration cost price fluctuations and the extent of
repairs to be completed at the end of the lease term.
Restructuring provisions
A provision is recognised when there is a present constructive obligation to meet the costs of restructure.
This arises when there is a detailed formal plan for the restructuring, identifying at least the business or part of the
business concerned, principal locations affected and the location, function and approximate number of employees
to be compensated for terminating their services and when the plan has been communicated to those affected
by it, raising an expectation that the plan will be carried out. These amounts are based on management’s best
estimates and comprise primarily termination payments to employees affected by restructuring.
Other provisions
Other provisions includes obligations relating to sales tax payable and other claims against the Group (not related
to professional indemnity claims). These amounts are based on reasonable estimates, taking into account the
opinions of subject matter experts and legal counsel. Other provisions also includes provisions for loss-making
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
231
Professional | |||||
indemnity | Dilapidation | Restructuring | Other | ||
claims | provisions | provision | provisions | Total | |
£m | £m | £m | £m | £m | |
At 1 January 2024 | 12.6 | 13.0 | 9.0 | 6.5 | 41.1 |
Provided during the year | 1.7 | 0.5 | 18.1 | 1.7 | 22.0 |
Interest unwind | – | 0.2 | – | – | 0.2 |
Utilised during the year | (1.6) | – | (13.8) | (0.1) | (15.5) |
Released during the year | (1.2) | – | (1.0) | (2.6) | (4.8) |
Exchange movement | 0.1 | (0.1) | (0.3) | (0.1) | (0.4) |
Closing amount as at 31 December 2024 | 11.6 | 13.6 | 12.0 | 5.4 | 42.6 |
Current | 0.4 | 1.7 | 12.0 | 5.1 | 19.2 |
Non-current | 11.2 | 11.9 | – | 0.3 | 23.4 |
Expected utilisation of non-current portion | 2–5 years | 2–13 years | – | 2–5 years | – |
Professional | |||||
indemnity | Dilapidation | Restructuring | Other | ||
claims | provisions | provision | provisions | Total | |
At 31 December 2023 | £m | £m | £m | £m | £m |
Current | 1.6 | 1.7 | 9.0 | 4.9 | 17.2 |
Non-current | 11.0 | 11.3 | – | 1.6 | 23.9 |
Total | 12.6 | 13.0 | 9.0 | 6.5 | 41.1 |
Other information about provisions
The professional indemnity claims provision and related insurance asset are presented in the accounts as follows:
2024 | 2023 | |
£m | £m | |
Provisions – current | 0.4 | 1.6 |
Provisions – non-current | 11.2 | 11.0 |
Trade and other receivables – non-current | (6.7) | (7.0) |
4.9 | 5.6 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
232
In addition to the defined benefit obligations pension scheme disclosed in Note 27, the following are included
in employee benefit obligations:
2024 |
2023 |
|
£m |
£m |
|
At 1 January 2024 |
44.0 |
42.9 |
Provided during the year |
17.0 |
9.0 |
Additions through business combinations (Note 28) |
0.6 |
0.1 |
Actuarial movement on employee benefit scheme |
0.1 |
0.1 |
Utilised during the year |
(15.9) |
(6.2) |
Exchange movement |
(1.3) |
(1.9) |
At 31 December 2024 |
44.5 |
44.0 |
2024 |
2023 |
|
£m |
£m |
|
Current |
19.4 |
18.5 |
Non-current |
25.1 |
25.5 |
44.5 |
44.0 |
The above provisions relate to holiday pay and long service leave in the UK, Asia Pacific, Continental Europe and the
Middle East. Profit shares are included within accruals (Note 23).
27. Retirement benefit plans
Defined benefit plans
A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive
on retirement, usually dependent on one or more factors, such as age, years of service and compensation.
The asset or liability recognised in the statement of financial position in respect of defined benefit pension plans
is the present value of the defined benefit obligations at the reporting date less the fair value of plan assets.
The defined benefit obligations are calculated annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligations are determined by discounting the estimated future
cash outflows.
The defined benefit scheme charge consists of net interest costs, past service costs and the impact of any
settlements or curtailments and is charged as an expense as they fall due.
All actuarial gains and losses are recognised immediately in other comprehensive income in the period in which
they arise.
Defined contribution plans
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity.
The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior years. Contributions
in respect of defined contribution pension schemes are charged to the income statement when they are payable.
The Group has no further payment obligations once the contributions have been paid. Prepaid contributions are
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
233
Determining the value of the future defined benefit obligation requires estimation in respect of the assumptions
used to calculate present values. These include future mortality, discount rate and inflation. Management determines
The Group operates both defined benefit and defined contribution plans. The Group’s main plans in the UK are:
§
The Savills UK Group Personal Pension Plan, a defined contribution plan.
§
The Pension Plan of Savills (the ‘UK Plan’), which provided final salary pension benefits to some employees,
but was closed with regard to future service-based benefit accrual with effect from 31 March 2010. From 1 April
2010, pension benefits for former employees of the UK Plan are provided through the Savills UK Group Personal
Pension Plan.
There are also a number of defined contribution individual pension plans and a Mandatory Provident Fund Scheme
in Hong Kong, to which the Group contributes.
The Group also has retirement arrangements around the world in line with local markets and cultures, including the
Savills Fund Management GMBH Plan (the ‘SFM Plan’) in Germany which provides final salary benefits to six active
employees and 107 former employees. The plan is closed to future service-based benefit accrual.
UK Plan
The UK Plan is administered by a separate Trust that is legally separated from the Company. The Board of the pension
fund is composed of six trustees. The Board of the pension fund is required by law and by its Article of Association
to act in the interest of the fund and of all relevant stakeholders in the scheme. The Board of the pension fund is
responsible for the investment policy with regard to the assets of the fund. The contributions are determined by an
independent qualified actuary on the basis of triennial valuations.
A full actuarial valuation of the UK Plan was carried out as at 31 March 2022 and has been updated to 31 December
2024 by a qualified independent actuary.
Rule 23 of the governing Trust Deed and Rules of the UK Plan covers the rights upon termination of the UK Plan, which
is triggered when there are no beneficiaries surviving in accordance with Rule 19. Management interprets these rules
that in the event of the UK Plan winding up with no members, any surplus assets would be returned to the Company.
Based on these rights, any net surplus in the scheme is recognised in full.
In June 2023, the High Court handed down a decision (Virgin Media Limited v NTL Pension Trustees II Limited and
others) which potentially has implications for the validity of amendments made by schemes, including the UK Plan,
which were contracted-out on a salary-related basis between 6 April 1997 and the abolition of contracting-out in 2016.
There is at least one further court case which is scheduled to be heard in 2025 which in part is expected to consider
what constitutes a valid s37 confirmation in respect of such amendments. The updated valuation as at 31 December
2024 does not reflect the June 2023 High Court ruling as it is currently unclear as to whether any additional liabilities
might arise, and if they were to arise, how they would be reliably measured. Through 2024, management has
continued to review the applicable amendments made in respect of the UK Plan and is nearing completion of this
review. Following the outcome of court cases and completion of management’s review process, management will
conclude whether any subsequent actions or amendments to IAS 19 liabilities are required.
SFM Plan
The SFM Plan is administered by an external Trust that is legally separated from the Company. The Trust Agreement
requires the trustee to maintain the plan assets in the interest of the beneficiaries of the plan and to fulfil their pension
entitlements in the event of insolvency to the extent of the plan assets held. The Investment Committee of the fund,
advised by expert investment managers, is responsible for the investment policy with regards to the assets of the fund.
The contributions are determined based on the annual valuations of an independent qualified actuary.
A full actuarial valuation of the SFM Plan was carried out as at 31 December 2024 by a qualified independent actuary.
Section 5.2 of the SFM Plan Trust Deed provides the Trustor (Savills Fund Management GmbH, Savills Fund
Management Holding AG, and Savills Investment Management (Germany) GmbH respectively) with an unconditional
right to a refund of surplus assets assuming the full settlement of plan liabilities in the event of a plan wind-up.
Furthermore, in the ordinary course of business neither Trustor nor Trustee have any rights to unilaterally wind up,
or otherwise augment the benefits due to members of the scheme. Based on these rights, any net surplus in the
scheme is recognised in full.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
234
27. Retirement benefit plans
continued
Impact on the income statement
The net charge arising from the Group’s retirement benefit plans as recognised in the income statement is shown below:
2024 | 2023 | |
£m | £m | |
Charges relating to defined contribution schemes included in employee benefit expenses | 43.6 | 40.1 |
Net interest income included in finance income | ||
– UK Plan | – | (1.0) |
– SFM Plan | (0.1) | (0.1) |
Total net retirement benefit plans charge in the income statement | 43.5 | 39.0 |
Impact on the statement of comprehensive income
The income/(charge) arising from the Group’s retirement benefit arrangements as recognised in the statement of
comprehensive income is shown below:
2024 | 2023 | |
£m | £m | |
Actuarial gains/(losses): | ||
– UK Plan | 10.6 | (24.0) |
– SFM Plan | – | (0.5) |
Total net retirement benefit plans income/(charge) in the | ||
statement of comprehensive income | 10.6 | (24.5) |
Statement of financial position
The amount outstanding as at 31 December 2024 in relation to defined contribution schemes within current trade and
other payables is £3.5m (2023: £3.4m).
The net defined benefit surplus in respect of defined benefit plans reported in the Group’s statement of financial
position sheet is set out below. Plans in surplus are presented within non-current assets and plans in deficit within non-
current liabilities.
| 2024 | 2023 | |||||
Present value | Fair value of | Present value | Fair value of | (Liability)/ | ||
of obligations | plan assets | Asset | of obligations | plan assets | asset | |
£m | £m | £m | £m | £m | £m | |
Recognised in non-current liabilities | ||||||
UK Plan | – | – | – | (195.1) | 194.4 | (0.7) |
Recognised in non-current assets | ||||||
UK Plan | (168.7) | 178.6 | 9.9 | – | – | – |
SFM Plan | (10.7) | 14.3 | 3.6 | (10.8) | 14.0 | 3.2 |
Total | (179.4) | 192.9 | 13.5 | (205.8) | 208.4 | 2.5 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
235
Movements in defined benefit plan assets and liabilities
| 2024 | 2023 | |||||
Present value | Fair value of | Liability/ | Present value | Fair value of | Liability/ | |
of obligation | plan assets | (asset) | of obligation | plan assets | (asset) | |
UK Plan | £m | £m | £m | £m | £m | £m |
At 1 January | (195.1) | 194.4 | (0.7) | (186.7) | 209.0 | 22.3 |
Interest (expense)/income | (8.6) | 8.6 | – | (8.9) | 9.9 | 1.0 |
Remeasurements: | ||||||
– Loss on plan assets, excluding | ||||||
| amounts included in interest income | – | (16.9) | (16.9) | – | (18.4) | (18.4) |
– Gain/(loss) from change in | ||||||
| financial assumptions | 24.3 | – | 24.3 | (5.7) | – | (5.7) |
– Gain from change in | ||||||
| demographic assumptions | 2.8 | – | 2.8 | 1.7 | – | 1.7 |
– Experience gains/(losses) | 0.4 | – | 0.4 | (1.6) | – | (1.6) |
Benefit payments | 7.5 | (7.5) | – | 6.1 | (6.1) | – |
At 31 December | (168.7) | 178.6 | 9.9 | (195.1) | 194.4 | (0.7) |
| 2024 | 2023 | |||||
Present value | Fair value of | Liability/ | Present value | Fair value of | Liability/ | |
of obligation | plan assets | (asset) | of obligation | plan assets | (asset) | |
SFM Plan | £m | £m | £m | £m | £m | £m |
At 1 January | (10.8) | 14.0 | 3.2 | (9.9) | 13.1 | 3.2 |
Interest (expense)/income | (0.4) | 0.5 | 0.1 | (0.4) | 0.5 | 0.1 |
Remeasurements: | ||||||
– Gain/(loss) on plan assets, excluding | ||||||
| amounts included in interest income | – | 0.4 | 0.4 | – | 0.6 | 0.6 |
– (Loss)/gain from change in | ||||||
| financial assumptions | 0.1 | – | 0.1 | (0.9) | – | (0.9) |
– Experience losses | (0.5) | – | (0.5) | (0.2) | – | (0.2) |
Employer contributions | – | 0.4 | 0.4 | – | 0.4 | 0.4 |
Benefit payments | 0.4 | (0.4) | – | 0.4 | (0.4) | – |
Exchange movement | 0.5 | (0.6) | (0.1) | 0.2 | (0.2) | – |
At 31 December | (10.7) | 14.3 | 3.6 | (10.8) | 14.0 | 3.2 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
236
27. Retirement benefit plans
continued
Plan assets
| 2024 | 2023 | |||||||
Quoted | Unquoted | Total | Quoted | Unquoted | Total | |||
UK Plan | £m | £m | £m | % | £m | £m | £m | % |
– Government bonds | 58.1 | – | 58.1 | 33% | 63.2 | – | 63.2 | 33% |
– Corporate bonds (investment grade) | 0.7 | – | 0.7 | 0% | 2.7 | – | 2.7 | 1% |
– Cash and cash equivalents | 6.5 | – | 6.5 | 4% | 15.4 | – | 15.4 | 8% |
Liability-driven investment (‘LDI’)* | 65.3 | – | 65.3 | 37% | 81.3 | – | 81.3 | 42% |
Investment funds | – | 22.8 | 22.8 | 13% | – | 34.6 | 34.6 | 18% |
Bonds | 23.6 | 35.4 | 59.0 | 33% | 24.7 | 40.8 | 65.5 | 34% |
Cash and cash equivalents | 4.1 | – | 4.1 | 2% | 2.7 | – | 2.7 | 1% |
Asset-backed securities** | 27.4 | – | 27.4 | 15% | 10.3 | – | 10.3 | 5% |
Total | 120.4 | 58.2 | 178.6 | 100% | 119.0 | 75.4 | 194.4 | 100% |
*
A portfolio of gilt and swap contracts that is designed to hedge the majority of the interest rate and inflation risks associated with the scheme’s obligations.
Government bonds include fixed and index-linked gilts, less repo cash.
**
A portfolio of primarily mortgage-backed securities and loans.
2024 | 2023 | |||
Unquoted | Unquoted | |||
SFM Plan | £m | % | £m | % |
Investment funds | 14.3 | 100% | 14.0 | 100% |
Total | 14.3 | 100% | 14.0 | 100% |
No Plan assets are the Group’s own financial instruments or property occupied or used by the Group. The fair values
of the above equity and debt instruments are provided by the fund managers. The fund managers use best-practice
techniques to value their holdings in investment funds, with valuations validated by an independent appraisal firm.
Where available, fair values are determined based on quoted market prices in active markets.
Although the UK Plan does not invest directly in the Group’s financial instruments, it does invest in passive equity
funds, so will have some exposure to FTSE All-Share Index, hence indirectly to the Savills plc share price.
Significant actuarial assumptions
UK Plan | SFM Plan | |||
2024 | 2023 | 2024 | 2023 | |
Expected rate of salary increases | 3.25% | 3.25% | 2.50% | 2.50% |
Projection of social security contribution ceiling | – | – | 2.25% | 2.25% |
Rate of increase to pensions in payment | ||||
– pension promise before 1 January 1986 | – | – | 2.20% | 2.20% |
– pension promise after 1 January 1986 | – | – | 2.20% | 2.20% |
– accrued before 6 April 1997 | 3.00% | 3.00% | – | – |
– accrued after 5 April 1997 | 2.90% | 2.80% | – | – |
– accrued after 5 April 2005 | 2.00% | 2.00% | – | – |
Rate of increase to pensions in deferment | ||||
– accrued before 6 April 2001 | 5.00% | 5.00% | – | – |
– accrued after 5 April 2001 | 2.70% | 2.50% | – | – |
– accrued after 5 April 2009 | 2.50% | 2.50% | – | – |
Discount rate | 5.50% | 4.50% | 3.51% | 3.55% |
Inflation assumption | 3.10% | 3.00% | 2.00% | 2.20% |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
237
Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and
experience. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 60:
UK Plan | SFM Plan | ||||
2024 | 2023 | 2024 | 2023 | ||
Retiring at the end of the reporting year | – Male | 89.1 | 87.9 | 85.9 | 85.8 |
– Female | 91.0 | 89.7 | 89.3 | 89.2 | |
Retiring 20 years after the end of the reporting year | – Male | 87.7 | 89.7 | 88.6 | 88.5 |
– Female | 89.6 | 91.4 | 91.5 | 91.4 | |
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the principal assumptions is:
Increase/(decrease) | ||
UK Plan | SFM Plan | |
£m | £m | |
1% increase in discount rates | (20.7) | (0.1) |
1% increase in inflation rate | 10.1 | 0.1 |
1% increase in salary increase rate | 0.7 | – |
1 year increase in life expectancy | 5.6 | 0.4 |
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit
obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied
in calculating the defined benefit obligations liability recognised in the statement of financial position.
The sensitivity of the plan assets to changes in the principal assumptions is:
Increase/(decrease) | ||
UK Plan | SFM Plan | |
£m | £m | |
1% increase in discount rates* | (19.3) | (0.1) |
1% increase in inflation rate | (8.6) | – |
*
Sensitivity to a change in government bond yields with unchanged credit spreads.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
238
27. Retirement benefit plans
continued
Risks arising from the Group’s defined benefit plans
Through the defined benefit plans, the Group is exposed to a number of risks, the most significant of which are
detailed below:
Asset volatility | The Plan liabilities are calculated using a discount rate set with reference to |
corporate bond yields; if Plan assets underperform this yield, this will create a deficit. | |
The Plan holds a significant proportion of equities and funds, which are expected to | |
outperform corporate bonds in the long term while providing volatility and risk in the | |
short term. | |
Changes in bond yields | A decrease in corporate bond yields will increase the Plan’s liabilities, although this |
will be partially offset by an increase in the value of the Plan’s bond holdings. | |
Inflation risk | Higher inflation will lead to higher liabilities. The majority of the Plan’s assets are either |
unaffected by or are loosely correlated with inflation, meaning that an increase in | |
inflation will also increase the deficit. | |
Life expectancy | The majority of the Plan’s obligations are to provide benefits for the life of the |
member, so increases in life expectancy will result in an increase in the Plan’s liabilities. |
Forecasted benefits payable from the defined benefit plans
The weighted average duration of the defined benefit obligations is 15 years for the UK Plan and 17 years for the
SFM Plan.
Expected maturity analysis of the undiscounted pension benefits:
Less than | Between | Between | Over | ||
a year | 1–2 years | 2–5 years | 5 years | Total | |
2024 | £m | £m | £m | £m | £m |
Pension benefit payments | |||||
– UK Plan | 7.7 | 16.2 | 29.3 | 411.7 | 464.9 |
– SFM Plan | 0.5 | 0.5 | 1.8 | 15.3 | 18.1 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
239
The fair values of the assets acquired and liabilities assumed as part of the Group’s acquisitions in the year are
provisional and will be finalised within 12 months of the acquisition date. These are summarised below:
Provisional fair value to the Group |
||||
Savills India |
Others |
Total |
||
£m |
£m |
£m |
||
Non-current assets: |
Property, plant and equipment |
0.8 |
0.7 |
1.5 |
Right-of-use asset |
1.7 |
– |
1.7 |
|
Intangible assets |
0.5 |
2.4 |
2.9 |
|
Deferred tax asset |
1.0 |
– |
1.0 |
|
Current assets: |
Trade and other receivables |
13.6 |
1.7 |
15.3 |
Income tax receivable |
– |
0.1 |
0.1 |
|
Cash and cash equivalents |
– |
6.1 |
6.1 |
|
Current liabilities: |
Borrowings – bank overdrafts |
(1.3) |
– |
(1.3) |
Lease liabilities |
(0.4) |
– |
(0.4) |
|
Trade and other payables |
(15.0) |
(5.1) |
(20.1) |
|
Deferred income |
– |
(2.0) |
(2.0) |
|
Income tax liabilities |
– |
(0.4) |
(0.4) |
|
Employee benefit obligations |
(0.6) |
– |
(0.6) |
|
Non-current liabilities: |
Lease liabilities |
(1.3) |
– |
(1.3) |
Trade and other payables |
(14.4) |
– |
(14.4) |
|
Deferred tax liabilities |
– |
(0.2) |
(0.2) |
|
Net (liabilities)/assets |
(15.4) |
3.3 |
(12.1) |
|
Non-controlling interest share |
||||
of net liabilities/assets |
6.9 |
(0.1) |
6.8 |
|
Net (liabilities)/assets acquired |
(8.5) |
3.2 |
(5.3) |
|
Goodwill (provisional) |
8.6 |
11.5 |
20.1 |
|
Purchase consideration |
0.1 |
14.7 |
14.8 |
|
Consideration satisfied by: |
||||
Cash paid |
– |
7.4 |
7.4 |
|
Fair value of associate holding, |
||||
prior to acquisition |
– |
5.6 |
5.6 |
|
Deferred consideration > 1 year |
– |
1.7 |
1.7 |
|
Conversion of convertible |
||||
cumulative preference shares |
||||
(‘CCPS’) |
0.1 |
– |
0.1 |
|
0.1 |
14.7 |
14.8 |
||
Savills Property Services (India) Private Limited (‘Savills India’)
On 12 August 2024, the Group increased its shareholding in Savills India, a full-service real estate consultancy business
in India. CCPS held by the Group converted into Class A equity shares, bringing the Group’s shareholding from a 19.5%
investment to a 55% owned subsidiary. The CCPS were held as a financial asset held at FVPL and immediately prior to
the transaction were fair valued to £0.1m, with the fair value re-measurement recognised in the income statement.
Total acquisition consideration is provisionally determined at £0.1m, being the fair value of the original 19.5%
investment and the CCPS that converted into equity.
Goodwill of £8.6m has been determined. Goodwill is attributable to the experience and expertise of key staff members
and is not expected to be deductible for tax purposes.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
240
28. Acquisitions of subsidiaries
continued
Savills Property Services (India) Private Limited (‘Savills India’)
continued
The acquired business contributed revenue of £23.8m and profit of £1.3m to the Group for the period from the date of
acquisition to 31 December 2024. Had the acquisition been made at the beginning of the financial year, revenue would
have been £52.9m and a profit of £1.1m would have been recognised.
The fair value of trade and other receivables is £13.6m, of which £6.9m relates to trade receivables. The gross
contractual amount for trade receivables is £7.4m, £0.5m of which is expected to be uncollectible.
Other acquisitions
On 3 January 2024, the Group acquired 100% of the equity interest in Verbier Hospitality SA, which specialises in
holiday rentals in Verbier, Switzerland. In addition, on 11 April 2024, the Group acquired Situu Limited and Situu
Management Limited, a flexible office advisory business in the UK. On 12 April 2024, the Group also acquired a
further 24% equity interest in Riviera Estates SAS, a luxury property agency in the south of France, bringing the total
shareholding to 75%. On 1 July 2024, Savills Projects Holdings Pte Ltd acquired 100% shareholding of PMCC Actus Sdn
Bhd (subsequently renamed Actus Sdn Bhd), leading to a 60% effective Group shareholding of the specialist project
management business in Malaysia. In addition, on 29 July 2024 the Group purchased a further 20% equity interest
in LCA Core Sdn Bhd Group, a leading supply chain and logistics consultancy business in Malaysia, bringing total
shareholding to 60%. Furthermore, on 1 August 2024, the Group acquired 100% of Medasil Desarrollos S.L, a residential
property management business in Spain.
Total acquisition consideration for these transactions is provisionally determined at £14.7m. Cash consideration
for these transactions amounted to £7.4m. An additional £1.7m of the acquisition consideration relates to deferred
consideration. The remainder of the acquisition consideration relates to the fair value of the initial 50% investment in
Riviera Estates SAS and the initial 40% investment in LCA Core Sdn Bhd as both were previously held as associates.
Goodwill of £11.5m has been provisionally determined. Goodwill is attributable to the experience and expertise of key
staff and strong industry reputation and is not expected to be deductible for tax purposes.
Acquisition-related costs of £0.2m have been expensed as incurred to the income statement and classified within
other operating expenses.
The acquired businesses contributed revenue of £2.8m and a profit of £0.3m to the Group for the period from
acquisition to 31 December 2024. Had the acquisitions been made at the beginning of the financial year, revenue would
have been £8.0m and the profit would have been £0.4m. The impact on the Group’s overall revenue and profits is
not material.
The fair value of trade and other receivables acquired is £1.7m, £1.1m of which relates to trade receivables. The gross
contractual amount for trade receivables is £1.3m, £0.2m of which is expected to be uncollectible.
2023 acquisitions and prior year restatement
In the year ended 31 December 2023 the Group acquired 100% equity interest in Nash Bond, 100% of the equity
interest in Automotive Property Consultancy Holdings Limited, 51% of the equity interest in BeLiving SRL
(subsequently renamed Savills Residential Italy SRL), 100% of the equity of Predibisa, Sociedade de Mediaçāo
Imobiliária, Lda. and a 55% equity interest in Site 8 Pty Limited (subsequently renamed Savills Retail Management
Pty Ltd).
During the current year, provisional fair values relating to the acquisition of Nash Bond were finalised, resulting in an
increase of £0.4m to the value of current assets and a £0.3m decrease to current liabilities acquired. The value of
deferred consideration payable also increased by £0.7m (impacting current liabilities), therefore there was no change
to the value of goodwill recognised upon acquisition. This adjustment is considered a measurement period adjustment
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
241
Transactions with non-controlling interests
Under IFRS 10, transactions with non-controlling interests must be accounted for as equity transactions. During the
year, the Group undertook the following transactions with non-controlling interests:
Effective holding |
Total effective holding |
|
(disposed)/acquired |
at 31 December 2024 |
|
Savills IM Holdings Limited |
(4%) |
71% |
Absolute Maintenance Services Pte Ltd and Solute Pte Limited (‘AMS’) |
20% |
80% |
Savills Fund Management GmbH |
3% |
71% |
In March 2024, Samsung Life completed on its call option to purchase a further 4% in Savills IM Holdings Limited for
consideration of £11.3m, increasing their shareholding to 29%. The carrying amount of the Savills IM Holdings Limited
group (‘Savills IM Group’) net assets on the date of disposal was £133.6m. The Group has recognised an increase in
non-controlling interest of £5.3m and a profit of £6.0m to retained earnings in respect of this transaction.
In December 2024, upon exercise of the AMS put option, the Group purchased an additional 20% holding in AMS for
consideration of £4.4m, increasing its shareholding to 80%. The carrying amount of AMS net assets on the date of the
transaction was £3.4m. The liability for the purchase price had already been recognised at the inception of the put and
call option in 2022, with subsequent gains or losses on re-measurement of the liability recognised in operating profits
in the income statement. The Group has recognised a decrease in non-controlling interest of £0.8m and a profit of
£0.8m to retained earnings in respect of this transaction.
In addition, the Group paid £0.8m in total to other non-controlling interest holders to bring the Group’s shareholding in
Savills Fund Management GmbH to 100%. There is no change to the value of non-controlling interest in relation to this
transactions and as a result the Group recognised a charge to retained earnings of £0.8m in respect to this transaction.
Savills IM |
||||
Group |
AMS |
Other |
Total |
|
£m |
£m |
£m |
£m |
|
Change in carrying amount of non-controlling interests |
(5.3) |
0.8 |
– |
(4.5) |
Consideration paid by/(to) non-controlling interest holder |
11.3 |
– |
(0.8) |
10.5 |
Gain/(charge) recognised in parent’s equity |
6.0 |
0.8 |
(0.8) |
6.0 |
Material non-controlling interests
The total non-controlling interest at the end of the year is £31.0m (2023: £34.9m). The majority of non-controlling
interests in respect of the Group’s subsidiaries where the Group does not own a holding of 100% are not considered
to be individually material, with the exception of the 29% non-controlling interest held by Samsung Life in the Savills
IM Group (31 December 2024: £36.8m, 31 December 2023: £33.5m, 25% non-controlling interest held). The loss after
tax allocated to the non-controlling interest of the Savills IM Group for the year ended 31 December 2024 was £2.9m
(31 December 2023: £1.9m loss after tax).
2024 |
2023 |
|
Savills IM Group |
£m |
£m |
Non-current assets |
101.7 |
106.8 |
Current assets |
82.7 |
113.7 |
Current liabilities |
(43.1) |
(69.6) |
Non-current liabilities |
(14.3) |
(16.8) |
Net assets |
127.0 |
134.1 |
Revenue |
94.1 |
105.8 |
Loss after tax |
(10.3) |
(7.4) |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
242
29. Non-controlling interests
continued
Reconciliation of non-controlling interests
Non- | Total non- | |||||
controlling | controlling | |||||
Savills IM | interest in | Other non- | Total non- | interests | ||
Group net | Savills IM | controlling | controlling | presented | ||
assets | Group | interests | Interests | Transfer | in reserves | |
£m | £m | £m | £m | £m | £m | |
Balance at 1 January 2024 | 134.1 | 33.5 | 1.4 | 34.9 | – | 34.9 |
(Loss)/profit for the year | (10.3) | (2.8) | 2.1 | (0.7) | – | (0.7) |
Other comprehensive loss: | ||||||
Tax on items taken to other comprehensive income | (0.3) | (0.1) | – | (0.1) | 0.1 | – |
Currency translation differences | (2.6) | (0.8) | (0.3) | (1.1) | – | (1.1) |
Total comprehensive (loss)/profit for the year | (13.2) | (3.7) | 1.8 | (1.9) | 0.1 | (1.8) |
Employee share option scheme: value | ||||||
of services provided | 1.9 | 0.6 | – | 0.6 | (0.6) | – |
Dividends | – | – | (2.6) | (2.6) | – | (2.6) |
Other reserve movements: | ||||||
– Issue of deferred shares | 7.6 | 2.1 | – | 2.1 | (2.1) | – |
– EBT contributions to Savills plc | (2.5) | (0.7) | – | (0.7) | 0.7 | – |
– Other | (0.9) | (0.3) | – | (0.3) | 0.3 | – |
Transfer between reserves | – | – | 1.2 | 1.2 | – | 1.2 |
Transactions with non-controlling interest holders | – | 5.3 | (0.8) | 4.5 | 1.6 | 6.1 |
Acquisitions of subsidiaries | – | – | (6.8) | (6.8) | – | (6.8) |
Balance at 31 December 2024 | 127.0 | 36.8 | (5.8) | 31.0 | – | 31.0 |
Non- | ||||
controlling | ||||
Savills IM | interest in | Other non- | Total non- | |
Group net | Savills IM | controlling | controlling | |
assets | Group | interests | Interests | |
£m | £m | £m | £m | |
Balance at 1 January 2023 | 134.8 | 33.7 | 3.5 | 37.2 |
(Loss)/profit for the year | (7.4) | (1.9) | 0.6 | (1.3) |
Other comprehensive (loss)/income: | ||||
Remeasurement of defined benefit pension scheme | (0.5) | (0.1) | – | (0.1) |
Tax on items taken to other comprehensive income | 0.1 | – | – | – |
Currency translation differences | (1.5) | (0.4) | (0.3) | (0.7) |
Total comprehensive (loss)/income for the year | (9.3) | (2.4) | 0.3 | (2.1) |
Employee share option scheme: value of services provided | 1.7 | 0.4 | – | 0.4 |
Dividends | – | – | (2.2) | (2.2) |
Transfer between reserves: | ||||
– Issue of deferred shares | 10.1 | 2.6 | – | 2.6 |
– EBT contributions to Savills plc | (3.2) | (0.8) | – | (0.8) |
– Other | – | – | (0.2) | (0.2) |
Balance at 31 December 2023 | 134.1 | 33.5 | 1.4 | 34.9 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
243
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds. When share capital is repurchased, the amount
of consideration paid, including directly attributable costs, is recognised as a charge to equity. Repurchased
shares which are not cancelled, or shares purchased for the Employee Benefit Trust and the Savills Rabbi Trust,
2024 | 2023 | 2024 | 2023 | |
Authorised and allotted | Number of shares* | Number of shares* | £m | £m |
Ordinary shares of 2.5p each: | ||||
Authorised | 202,000,000 | 202,000,000 | 5.1 | 5.1 |
Issued, called up and fully paid | 144,560,279 | 144,389,919 | 3.6 | 3.6 |
Movement in issued, called-up and fully paid share capital:
| 2024 | 2023 | |||||
Share | Share | Share | Share | |||
Number | capital | premium | Number | capital | premium | |
of shares* | £m | £m | of shares* | £m | £m | |
At 1 January | 144,389,919 | 3.6 | 104.9 | 144,353,048 | 3.6 | 104.9 |
Issued to direct participants on exercise of | ||||||
options under the Sharesave Scheme | 16,140 | – | 0.1 | 4,322 | – | – |
Issued to direct participants under the | ||||||
Performance Share Plan | 154,220 | – | – | 32,549 | – | – |
At 31 December | 144,560,279 | 3.6 | 105.0 | 144,389,919 | 3.6 | 104.9 |
*
Number of shares are stated before the impact of the shares held by the EBT and Rabbi Trust.
Each issued, called-up and fully paid ordinary share of 2.5p is a voting share in the capital of the Company, is entitled
to participate in the profits of the Company and on winding-up is entitled to participate in the assets of the Company.
At the Annual General Meeting (‘AGM’) held on 15 May 2024, the Shareholders gave the Company authority, subject
to stated conditions, to purchase for cancellation up to 14,439,084 of its own ordinary shares (AGM held on 17 May
2023: 14,435,333). Such authority remains valid until the conclusion of the next AGM or 15 August 2025, whichever
is the earlier.
shares (2023: 1,502,155). These shares are held by the Group as ‘treasury shares’. Any voting or other similar decisions
relating to these shares are taken by the trustees of the EBT and the Rabbi Trust, who may take account of any
recommendation of the Company. The EBT waives all of its dividend entitlement. For further details of the EBT and
the Rabbi Trust refer to Note 32. A reconciliation of the movement in treasury shares for the year ended 31 December
is shown below:
Number of treasury shares | 2024 | 2023 |
At 1 January | 9,117,575 | 8,695,177 |
Shares acquired | 2,112,426 | 2,844,065 |
Shares reissued | (2,351,133) | (2,421,667) |
At 31 December | 8,878,868 | 9,117,575 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
244
The share premium account represents the premium on shares issued. This reserve is non-distributable.
The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration. Refer to Note 32 for further details of
these plans.
Treasury shares represents the cost of shares in Savills plc purchased in the market and held in trust to satisfy the
exercise of share options.
The capital reserve includes mandatory minimum required capital reserves for certain regulated entities within the
Investment Management business. These reserves are restricted with respect to dividend payments and distributions
and are required to be treated separately to regular retained earnings.
The capital redemption reserve includes the nominal value of shares bought back by the Company. This reserve is
non-distributable.
The merger relief reserve arose from the acquisition of Studley Inc (2014 acquisition) and records the premium value of
the shares issued as part of the consideration for the acquisition of this business. This reserve is non-distributable.
The foreign exchange reserve primarily records exchange differences arising from the translation of the balance sheets
of foreign currency denominated subsidiaries.
The revaluation reserve primarily records fair value movements on the Group’s equity investments held at FVOCI (see
Note 20). This reserve is non-distributable.
| Attributable to owners of the parent |
|||||||||
Share- |
Capital |
||||||||
based |
Profit |
Total |
redemption |
Merger |
Foreign |
Total |
|||
payments |
Treasury |
and loss |
retained |
and capital |
relief |
exchange |
Revaluation |
other |
|
reserve |
shares |
account* |
earnings* |
reserve |
reserve |
reserve |
reserve |
reserves |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
Balance at 1 January 2024 |
60.3 |
(92.6) |
547.2 |
514.9 |
(0.8) |
37.9 |
71.9 |
(14.5) |
94.5 |
Profit attributable to |
|||||||||
owners of the Company |
– |
– |
53.6 |
53.6 |
– |
– |
– |
– |
– |
Other comprehensive |
|||||||||
(loss)/income |
– |
– |
7.6 |
7.6 |
– |
– |
(4.5) |
(0.8) |
(5.3) |
Employee share |
|||||||||
option scheme: |
|||||||||
– Value of services provided |
31.4 |
– |
– |
31.4 |
– |
– |
– |
– |
– |
– Tax on employee share |
|||||||||
| option schemes |
0.8 |
– |
– |
0.8 |
– |
– |
– |
– |
– |
– Exercise of options |
(24.0) |
24.0 |
– |
– |
– |
– |
– |
– |
– |
– Exercise of options: |
|||||||||
| tax on employee share |
|||||||||
| option schemes |
(0.5) |
– |
0.5 |
– |
– |
– |
– |
– |
– |
Purchase of treasury shares |
– |
(22.9) |
– |
(22.9) |
– |
– |
– |
– |
– |
Dividends |
– |
– |
(31.2) |
(31.2) |
– |
– |
– |
– |
– |
Transfer between reserves |
– |
– |
(1.3) |
(1.3) |
– |
– |
– |
0.1 |
0.1 |
Transactions with non- controlling interest holders |
– |
– |
4.4 |
4.4 |
– |
– |
– |
– |
– |
Fair value of derivative financial instruments |
– |
– |
(8.4) |
(8.4) |
– |
– |
– |
– |
– |
Balance at |
|||||||||
31 December 2024 |
68.0 |
(91.5) |
572.4 |
548.9 |
(0.8) |
37.9 |
67.4 |
(15.2) |
89.3 |
*
Included within profit and loss account is tax on items taken directly to equity (Note 13.4) as disclosed above.
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
245
| Attributable to owners of the parent |
|||||||||
Share- |
Capital |
||||||||
based |
Profit |
Total |
redemption |
Merger |
Foreign |
Total |
|||
payments |
Treasury |
and loss |
retained |
and capital |
relief |
exchange |
Revaluation |
Other |
|
reserve |
shares |
account* |
earnings* |
reserve |
reserve |
reserve |
reserve |
reserves |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
Balance at 1 January 2023 |
51.7 |
(91.9) |
587.0 |
546.8 |
2.2 |
34.9 |
98.5 |
(22.8) |
112.8 |
Profit attributable to |
|||||||||
owners of the Company |
– |
– |
40.8 |
40.8 |
– |
– |
– |
– |
– |
Other comprehensive |
|||||||||
income/(loss) |
– |
– |
(16.2) |
(16.2) |
– |
– |
(26.6) |
0.6 |
(26.0) |
Employee share |
|||||||||
option scheme: |
|||||||||
– Value of services provided |
28.8 |
– |
– |
28.8 |
– |
– |
– |
– |
– |
– Tax on employee share |
|||||||||
| option schemes |
0.5 |
– |
– |
0.5 |
– |
– |
– |
– |
– |
– Exercise of options |
(21.2) |
25.6 |
(4.4) |
– |
– |
– |
– |
– |
– |
– Exercise of options: |
|||||||||
| tax on employee share |
|||||||||
| option schemes |
(0.2) |
– |
0.2 |
– |
– |
– |
– |
– |
– |
Tax on items taken to |
|||||||||
reserves |
– |
– |
(0.4) |
(0.4) |
– |
– |
– |
– |
– |
Purchase of treasury shares |
– |
(26.3) |
– |
(26.3) |
– |
– |
– |
– |
– |
Dividends |
– |
– |
(48.8) |
(48.8) |
– |
– |
– |
– |
– |
Transfer between reserves |
0.7 |
– |
(10.4) |
(9.7) |
(3.0) |
3.0 |
– |
7.7 |
7.7 |
Fair value of derivative |
|||||||||
financial instrument |
– |
– |
(0.6) |
(0.6) |
– |
– |
– |
– |
– |
Balance at |
|||||||||
31 December 2023 |
60.3 |
(92.6) |
547.8 |
515.5 |
(0.8) |
37.9 |
71.9 |
(14.5) |
94.5 |
*
The Group operates equity-settled share-based compensation plans. The fair value of the employee services
received in exchange for the grant of the options is recognised as an expense.
All equity-settled share-based payments are measured at fair value at the date of grant. Fair value is predominantly
measured by use of the Actuarial Binomial option pricing model. The fair value determined at the grant date of
the equity-settled share-based payments is expensed on a straight-line basis over the vesting period. Market
performance conditions are reflected within the grant date fair value. Service and non-market performance
conditions are included in assumptions about the number of options that are expected to vest. At the end of each
reporting period, the Group revises its estimate of the number of options that are expected to vest based on the
service and non-market performance conditions. It recognises the impact of the revision to original estimates,
if any, in the income statement, with a corresponding adjustment to equity.
Any cash proceeds received net of any directly attributable transaction costs are credited to share capital
(nominal value) and share premium when the options are exercised.
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
246
Material accounting policies relating to share-based payment arrangements
continued
Employee Benefit Trust and Savills Rabbi Trust
The Company has established the Savills plc 1992 Employee Benefit Trust (the ‘EBT’) and the Savills Rabbi Trust (the
‘Rabbi Trust’), the purposes of which are to grant awards to employees, to acquire shares in the Company pursuant
to the Savills Deferred Share Bonus Plan and the Savills Deferred Share Plan and to hold shares in the Company
for subsequent transfer to employees on the vesting of the awards granted under the schemes. The assets and
liabilities of the EBT and Rabbi Trust are included in the Group statement of financial position. Investments in the
The Group operates four equity-settled share-based payment arrangements, namely the Sharesave Scheme, the
Performance Share Plan (‘PSP’), the Deferred Share Plan (‘DSP’) and the Deferred Share Bonus Plan (‘DSBP’). The
Group recognised total expenses relating to equity-settled share-based payment transactions of £31.4m in 2024
(2023: £28.8m). Of the total share-based payments charge, £1.2m (2023: £1.3m) relates to the Sharesave Scheme,
£10.4m (2023: £10.3m) relates to the DSP, £19.4m (2023: £16.9m) relates to the DSBP and £0.4m (2023: £0.3m)
relates to the PSP.
Refer to the Remuneration Report for details of the PSP, pages 159 and 160. Refer to the Directors’ Report for details
of the Sharesave Scheme, page 166. The DSBP has been established to provide employees with an element of the
annual performance-related profit share which is deferred and awarded as shares in Savills plc. DSBP awards have a
deferral period of between three and five years. The DSP provides certain employees with an award over Savills plc
shares for purposes including recruitment and retention. Current awards under the DSP have a deferral period of
between one and seven years. In addition to continued employment, DSP awards may be granted with performance
conditions attaching, primarily relating to financial targets.
32.1 Movements in share schemes
Sharesave | PSP | DSP | DSBP | |
2024 number of awards (‘000) | awards | awards | awards | awards |
Outstanding at 1 January | 2,091 | 641 | 3,770 | 6,661 |
Granted | – | 116 | 669 | 1,785 |
Exercised | (16) | (136) | (952) | (1,245) |
Cancelled | (84) | – | – | – |
Forfeited/lapsed | (92) | (136) | (203) | (189) |
Outstanding at 31 December | 1,899 | 485 | 3,284 | 7,012 |
Exercisable at 31 December | ||||
Weighted average exercise price for awards outstanding | ||||
at the beginning of the year, exercised in the year and | ||||
forfeited/lapsed in the year (pence) | 756.9 | – | – | – |
Weighted average exercise price for awards granted and | ||||
outstanding at end of the year (pence) | 756.9 | – | – | – |
Weighted average remaining contractual life (years) | 0.8 | 3.0 | 1.7 | 1.7 |
Weighted average share price at the date of exercise for | ||||
awards exercised in the year (pence) | 1,103.8 | 1,020.3 | 1,090.8 | 1,092.7 |
32. Share-based payment arrangements
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
247
Sharesave | PSP | DSP | DSBP | |
2023 number of awards (‘000) | awards | awards | awards | awards |
Outstanding at 1 January | 2,290 | 543 | 3,682 | 5,520 |
Granted | – | 141 | 1,366 | 2,399 |
Exercised | (4) | (33) | (1,171) | (1,058) |
Cancelled | (92) | – | – | – |
Forfeited/lapsed | (103) | (10) | (107) | (200) |
Outstanding at 31 December | 2,091 | 641 | 3,770 | 6,661 |
Exercisable at 31 December | ||||
Weighted average exercise price for awards outstanding | ||||
at the beginning of the year, exercised in the year and | ||||
forfeited/lapsed in the year (pence) | 757.0 | – | – | – |
Weighted average exercise price for awards granted and | ||||
outstanding at end of the year (pence) | 757.0 | – | – | – |
Weighted average remaining contractual life (years) | 1.8 | 2.4 | 1.9 | 1.9 |
Weighted average share price at the date of exercise for | ||||
awards exercised in the year (pence) | 890.8 | 976.6 | 927.7 | 962.6 |
32.2 Fair value of options
For all the DSP and DSBP schemes the fair value of awards is the closing share price before award date. The Actuarial
Binomial model of actuaries Lane Clark & Peacock LLP is used to fair value awards granted under the PSP and
Sharesave schemes.
The key inputs to determine the fair value of the awards granted under the PSP scheme during 2024 are shown below.
Performance Share Plan: Awards in the year ended 31 December 2024 | 17 May 2024 |
Share price at grant date (pence) | 1,110.0 |
Risk-free rate | 4.1% |
Volatility of Savills plc share price | 32% per annum |
Employee turnover | Zero |
The expected volatility is measured over the three years prior to the date of grant to match the vesting period of the
award. The risk-free rate is the yield on a zero coupon UK Government bond at each grant date, with term based on
the expected life of the option or award.
The fair values of options granted in the period are shown below.
Grant | Grant date | Deferred period | Fair value pence |
DSBP 2024 | 24 April 2024 | 3 years | 1,042.0 |
DSBP 2024 | 24 April 2024 | 4 years | 1,042.0 |
DSP 2024 | 24 April 2024 | 1 – 5 years | 1,042.0 |
DSP 2024 | 7 June 2024 | 3 years | 1,146.0 |
DSP 2024 | 12 June 2024 | 2.9 years | 1,112.0 |
DSP 2024 | 17 September 2024 | 3 – 4 years | 1,170.0 |
DSP 2024 | 31 May 2024 | 1 – 5 years | 1,144.0 |
PSP 2024 (EPS/ROCE) | 17 May 2024 | 5 years | 1,107.5 |
PSP 2024 (TSR) | 17 May 2024 | 5 years | 695.6 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
248
The Group is involved in a number of disputes in the ordinary course of business. Provision is made in the financial
statements for all claims where costs can be estimated reliably and settlement is probable, refer to Note 25 for
2024 |
2023 |
|
£m |
£m |
|
Profit for the year |
52.9 |
39.5 |
Adjustments for: |
||
Income tax (Note 13.1) |
35.4 |
15.9 |
Depreciation (Note 17 and 18.1) |
70.2 |
69.6 |
Amortisation of intangible assets (Note 16) |
16.1 |
15.8 |
Fair value gain on step acquisition of subsidiaries previously classified as associates |
(4.4) |
– |
Net fair value loss/(gain) on derivative financial instrument and FVPL investments |
6.0 |
(2.1) |
Gain on disposal of property, plant and equipment, intangible assets and leases |
(0.2) |
(4.0) |
Impairment of goodwill |
1.9 |
3.9 |
Net finance income (Note 12) |
(14.5) |
(12.1) |
Share of post-tax profit from joint ventures and associates (Note 19) |
(7.5) |
(10.2) |
Dividends from other parties |
(0.5) |
(0.2) |
Increase in employee and retirement obligations |
0.6 |
2.5 |
Exchange movement in operating activities |
(3.4) |
0.5 |
Increase in provisions |
2.0 |
11.2 |
Decrease/(increase) in insurance reimbursement asset |
0.4 |
(3.4) |
Charge for share-based compensation (Note 32) |
31.4 |
28.8 |
Operating cash flows before movements in working capital |
186.4 |
155.7 |
Increase in trade and other receivables and contract assets |
(49.9) |
(45.5) |
Increased/(decrease) in trade and other payables and contract liabilities |
40.8 |
(61.0) |
Cash generated from operations |
177.3 |
49.2 |
Foreign exchange movements resulted in a £2.6m increase in current and non-current trade and other
receivables (2023: £20.1m decrease) and a £5.7m decrease in current and non-current trade and other payables
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
249
Non-cash |
Movements |
||||||
movements |
through |
||||||
recognised in |
Other |
business |
|||||
At |
the income |
non-cash |
combinations |
Exchange |
At |
||
1 January |
Cash flows |
statement |
movements |
and disposals |
movement |
31 December |
|
2024 |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
Bank loans |
(3.1) |
1.5 |
– |
– |
– |
0.1 |
(1.5) |
Loan notes |
(150.7) |
0.7 |
– |
– |
– |
– |
(150.0) |
Transaction costs |
0.8 |
– |
(0.4) |
– |
– |
– |
0.4 |
Lease liabilities |
(254.3) |
68.7 |
(9.1) |
(38.8) |
(1.7) |
2.1 |
(233.1) |
Liabilities arising from |
|||||||
financing activities |
(407.3) |
70.9 |
(9.5) |
(38.8) |
(1.7) |
2.2 |
(384.2) |
Non-cash |
Movements |
||||||
movements |
through |
||||||
recognised in |
Other |
business |
|||||
At |
the income |
non-cash |
combinations |
Exchange |
At |
||
1 January |
Cash flows |
statement |
movements |
and disposals |
movement |
31 December |
|
2023 |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
Bank loans |
(4.5) |
1.0 |
– |
– |
– |
0.4 |
(3.1) |
Loan notes |
(153.8) |
3.2 |
– |
– |
– |
(0.1) |
(150.7) |
Transaction costs |
1.4 |
– |
(0.6) |
– |
– |
– |
0.8 |
Lease liabilities |
(277.6) |
63.9 |
(9.2) |
(38.4) |
(0.5) |
7.5 |
(254.3) |
Liabilities arising from |
|||||||
financing activities |
(434.5) |
68.1 |
(9.8) |
(38.4) |
(0.5) |
7.8 |
(407.3) |
Non-cash movements recognised in the income statement represent amortisation of transaction costs and unwinding
of discount on lease liabilities. Other non-cash movements to lease liabilities represent new leases and disposal
of leases.
The part of the lease payment that represents cash payments for the principal portion of the lease liability is presented
as a cash flow resulting from financing activities (2024: £59.6m, 2023: £54.7m). The part of the lease payment
that represents the interest portion of the lease liability is presented as an operating cash flow, consistent with the
Other than disclosed below and the information provided within the Remuneration Report and Note 11.3 (Key
management compensation), there were no significant related party transactions during the year.
(a) Loans to related parties
Refer to Note 21 for details of loans made to joint ventures and associates.
(b) Transactions with associates and joint ventures
There were no material transactions with associates and joint ventures in the year (2023: no material transactions),
There have been no events that occurred after the reporting period that require disclosure or events that require
adjustment to the financial statements or are considered to have a material impact on the understanding of the
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
250
In accordance with Section 409 of the Companies Act 2006 a full list of subsidiaries, partnerships, associates and
joint ventures, the registered office and the effective percentage of equity owned by the Group, as at 31 December
2024, are disclosed below. Unless otherwise stated, all subsidiary undertakings are consolidated into the Group
financial statements and share capital wholly comprises ordinary shares which are indirectly held by the Company.
Unless otherwise stated, percentage of equity owned is the same as the percentage of voting rights.
Country of |
|||
Fully owned subsidiary |
incorporation |
Registered office |
|
Incoll Group Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Incoll Management Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Moores Cost Consulting Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (ACT) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (Aust) Holdings Pty Ltd |
(ii) |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
Savills (Aust) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (NSW) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (QLD) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (SA) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (TAS) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (VIC) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills (WA) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Capital Advisory Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Occupier Services Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Project Management Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Project Services (SA) Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Valuations Pty Ltd |
Australia |
Level 25, 1 Farrer Place, Sydney, NSW 2000 |
|
Savills Sales W.L.L. |
Bahrain |
Flat/shop: 2802, Building: 2504, Road: 2832, |
|
Savills Middle East Co. W.L.L. |
Bahrain |
Flat/shop: 2804, Building: 2504, Road: 2832, |
|
Savills Canada, Inc. |
Canada |
181 Bay Street – Suite 200, Toronto, ON M5J 2T3 |
|
Savills Inc. |
Canada |
181 Bay Street – Suite 200, Toronto, ON M5J 2T3 |
|
Savills Services Inc. |
Canada |
181 Bay Street – Suite 200, Toronto, ON M5J 2T3 |
|
Guardian Property Services |
China |
Room 220, Block 1, No.100 Jinyu Road, |
|
(Shanghai) Company Ltd |
Pu Dong, Shanghai |
||
Savills Business Information |
China |
Unit 201, A Tower, No.1 QianWan Yi Road, Qianhai |
|
Technology (Shenzhen) Limited |
Shengan Cooperation District, Shenzhen |
||
Savills Property Services (Beijing) |
China |
2101 East Tower, Twin Towers, B-12 Jianguomenwai |
|
Company Ltd |
Avenue, Chaoyang District, Beijing 100022 |
||
Savills Property Services (Chengdu) |
China |
Room 2106, Yanlord Landmark, No.1 Section 2, Renmin |
|
Company Ltd |
South Road, Chengdu 610016 |
||
Savills Property Services (Chongqing) |
China |
Room 1601, 16th floor, GuoHua Financial Center, No. 9 |
|
Company Ltd |
JuXianYan Square, JiangBeiZui, Chongqing |
||
Savills Property Services |
China |
Room 1301, R&F Center, No.10 Hua Xia Road, Zhujiang |
|
(Guangzhou) Company Ltd |
New Town, Guangzhou 510623 |
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
251
Country of | ||
Fully owned subsidiary | incorporation | Registered office |
Savills Property Services (Hainan) | China | Room 9A, Baifang Building, Baifang Square, No.105 |
Limited | Binhai Avenue, Longhua District, Haikou, China | |
Savills Property Services (Hengqin) | China | Room 105-19233, No. 6 Baohua Road, |
Limited | Hengqin new area, Zhuhai | |
Savills Property Services (Shanghai) | China | Unit D, Room 62,Block 3, No.227, |
Company Ltd | Ru Shan Road, Shanghai | |
Savills Property Services (Tianjin) | China | Unit 4607, Tianjin World Financial Center, No.2 Dagu |
Company Ltd | North Road, Xiaobailou Street, Heping District, Tianjin | |
Savills Property Services (Wuhan) | China | Unit 08-10, 27th Floor, CITIC PACIFIC Mansion, No.1627 |
Company Ltd | Zhongshan Avenue, Jiang’an District | |
Savills Property Services (Zhuhai) | China | Unit 3702-12, CITIC Southern Airlines International Plaza, |
Company Ltd | No. 52 South Haibin Road, Xiangzhou District, Zhuhai | |
Savills Corporate Appraisal | China | Unit 01, 21/F, East Tower, Twin Towers, B-12 |
& Advisory Ltd | Jianguomenwai Avenue, Chaoyang District, Beijing 100022 | |
Savills Real Estate Valuation | China | Room 2105, R&F Center, No.10 Hua Xia Road, Zhujiang |
(Guangzhou) Company Ltd | New Town, Guangzhou 510623 | |
Savills Technology Innovation | China | Room 205, floor 2 west, No. 707 zhangyang road, China |
Services (Shanghai) Company Ltd | (Shanghai) Pilot Free Trade Zone | |
Shenzhen Guardian Property | China | Unit 03, 9/F, China Resources Tower, No.2666, Keyuan |
Management Ltd | South Road, Nanshan District, Shenzhen, 518000, China | |
Swan Property Services (Beijing) | China | 2101 East Tower, Twin Towers, B-12 Jianguomenwai |
Company Ltd | Avenue, Chaoyang District, Beijing 100022 | |
Savills Engineering Consulting | China | Room 205, floor 2 west, No. 707 zhangyang road, China |
Shanghai Company Ltd | (Shanghai) Pilot Free Trade Zone | |
Savills CZ s.r.o. | Czech Republic | Florentinum, Building C, Na Florenci 2116/15, |
Prague 1, 110 00 | ||
Cluttons Egypt Consulting JSC | Egypt | Building 17, Street 210, Al Maadi, Cairo |
Savills Egypt Consulting JSC | Egypt | Building 17, Street 210, Maadi, Cairo. |
Savills SA | France | 59, Rue De Tocqueville, 75017, Paris France |
Savills Valuation SAS | France | 59, Rue De Tocqueville, 75017, Paris France |
BRICKBYTE GmbH | Germany | Rosental 4, 80331 München, Germany |
Savills Advisory Services GmbH | Germany | Taunusanlage 18, 60325 Frankfurt am Main |
Savills Immobilien Beratungs GmbH | Germany | Taunusanlage 18, 60325 Frankfurt am Main |
Savills Immobilien Beteiligungs – | Germany | Taunusanlage 18, 60325 Frankfurt am Main |
GmbH | ||
Savills Immobilien Management | Germany | Taunusanlage 18, 60325 Frankfurt am Main |
GmbH | ||
Savills Property Management | Germany | Bonner Straße 209, 50968 Köln, Germany |
Deutschland GmbH | ||
Savills Facility Management | Germany | Bonner Straße 209, 50968 Köln, Germany |
Deutschland GmbH | ||
Savills Channel Islands Limited | Guernsey | Royal Terrace, Glategny Esplanade, St Peter Port, |
Guernsey, GY1 2HN |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
252
Country of | ||
Fully owned subsidiary | incorporation | Registered office |
Absolute Result Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central |
Bridgewater Management Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
BTHK Property Management Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing |
Champion Insurance and Computer | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Services Ltd | ||
Dominion Office Centre Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Savills IT Solutions Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Express Engineering Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Express Maintenance Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Gateway Contractors Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Greenscape Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
GRVM Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guard Able Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Care Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Management Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Mandarin Management Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Partners Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Property Agencies Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Property Management Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Guardian Integrated Management | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Services Limited | ||
Guardian ProTech Facilities | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Management Limited | ||
Hip Kwan Property Management Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Kenda Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Kwik Park Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Mount Link Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Quartey Properties Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Savills (China) Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central |
Savills (Hong Kong) Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central |
Savills Asia Pacific Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central |
Savills Building Services Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing |
Savills Design Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing |
Savills Engineering Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing |
Savills Guardian (Holdings) Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Savills India Holding Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
253
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Savills Indonesia Holding Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Management Services Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Philippines Holding Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Project Consultancy Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing | |
Savills Property Management | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing | |
Holdings Ltd | |||
Savills Property Management Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing | |
Savills Realty Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Regional Services Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Property Services Ltd | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, Taikoo Shing | |
Savills Valuation and Professional | Hong Kong | Room 1208, 1111 King’s Road, Taikoo Shing | |
Services Ltd | |||
Savills Valuation and Professional | Hong Kong | Room 1208, 1111 King’s Road, Taikoo Shing | |
Services (China) Ltd | |||
Security and Safety Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Swan Hygiene Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Swan Hygiene Solutions Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Swan Pest Control Services Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Tarrayon Ltd | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
The Peninsular Centre Retailers | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Association Ltd | |||
Savills International Realty Ltd | Hong Kong | 23/F, Two Exchange Square, 8 Connaught Place, Central | |
Savills Prestige Limited | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Savills Smart Management Limited | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Savills Smart Parking Limited | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Savills-One Management | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Services Limited | |||
PT Savills Indonesia IRE | Indonesia | Panin Tower – Senayan City, 16/F, Jl.Asia Afrika Lot.19, | |
Jakarta 10270 | |||
PT Savills Consultants Indonesia | Indonesia | Panin Tower – Senayan City, 16/F, Jl.Asia Afrika Lot.19, | |
Jakarta 10270 | |||
Savills Valuation Advisor LLP | India | 463 Embassy Lake Terrace, L-6,T-4, Kempapura Hebbal, | |
P&T Col. Kavalbyrasandra, Bangalore North, Bangalore- | |||
560032, Karnataka | |||
Actium | (ii) | Ireland | 33 Molesworth Street, Dublin 2 |
Anateo Ltd | (ii) | Ireland | 33 Molesworth Street, Dublin 2 |
Savills Advisory Services (Ireland) | Ireland | 33 Molesworth Street, Dublin 2 | |
Limited | |||
Savills Commercial (Ireland) Limited | (ii) | Ireland | 33 Molesworth Street, Dublin 2 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
254
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Savills Management Resource | Ireland | 33 Molesworth Street, Dublin 2 | |
Ireland Ltd | |||
Savills Residential (Ireland) Ltd | Ireland | 33 Molesworth Street, Dublin 2 | |
Savills Italia S.r.l. | Italy | Via Manzoni, 37 – 20121 Milano | |
Savills Italy SRL (EUR) | Italy | Via Manzoni, 37 – 20121 Milano | |
Savills Asset Advisory Company Ltd | Japan | TOHO Hibiya Promenade Building 8F, 1-5-2 Yurakucho, | |
Chiyoda-ku, Tokyo 100-0006 | |||
Savills Japan Company Ltd | Japan | TOHO Hibiya Promenade Building 8F, 1-5-2 Yurakucho, | |
Chiyoda-ku, Tokyo 100-0006 | |||
Savills Japan Valuation GK | Japan | TOHO Hibiya Promenade Building 8F, 1-5-2 Yurakucho, | |
Chiyoda-ku, Tokyo 100-0006 | |||
Savills plc 1992 Employee | (v) | Jersey | Third Floor Cambridge House, Le Truchot, St Peter Port, |
Benefit Trust | GY1 1WD, Guernsey | ||
1992 EBT Holdings Ltd | (v) | Jersey | 50 La Colomberie, St. Helier, JE2 4QB |
Savills (Jersey) Ltd | Jersey | 19 Halkett Place, St Helier, JE2 4WG | |
Savills (Macau) Ltd | Macau | Suite 1309-1310, 13/F Macau Landmark, 555 Avenida da | |
Amizade | |||
Savills Project Consultancy | Macau | Suite 1309-1310, 13/F Macau Landmark, 555 Avenida da | |
(Macau) Ltd | Amizade | ||
Savills Property Management | Macau | Suite 1309-1310, 13/F Macau Landmark, 555 Avenida da | |
(Macau) Ltd | Amizade | ||
Savills (Myanmar) Ltd | Myanmar | No. 8, Unit 8-A, Centerpoint Towers, No. 65, Corner | |
of Sule Pagoda Road & Merchant Street, Kyauktada | |||
Township, Yangon | |||
Savills Asset and Property | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
Management BV | 1082 MD | ||
Savills Agency B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills Building & Project | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
Consultancy B.V. | 1082 MD | ||
Savills Consultancy B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills Holdings B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills Investments B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills Nederland Holdings BV | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD | |||
Savills Retail B.V. | Netherlands | Viñoly Building, Claude Debussylaan 48, Amsterdam | |
1082 MD |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
255
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Savills (NZ) Ltd | New Zealand | Level 6, 41 Shortland Street, Auckland Central, | |
Auckland, 1010 | |||
Savills Sp Z o.o. | Poland | Al. Jana Pawła II 22, Warszawa | |
Savills Portugal – Consultoria, Lda. | Portugal | Avenida Miguel Bombarda 4, 1000-208 Lisboa | |
Savills Portugal – Mediaçao | Portugal | Avenida Miguel Bombarda 4, 1000-208 Lisboa | |
Imobiliaria Lda | |||
Predibisa – Sociedade de Mediacao | Portugal | R. José Gomes Ferreira 117 | |
imobiliaria Lda | |||
Savills for Business Services SPC | Saudi Arabia | PO Box 17, Riyadh, Post Code: 11411 | |
Savills Arabia for Real Estate | Saudi Arabia | PO Box 17, Riyadh, Post Code: 11411 | |
Valuation LLC | |||
Savills Regional Headquarters | Saudi Arabia | 2908 Prince Muhammad Ibn Abdulaziz, Riyadh, 12241 | |
Savills (SEA) Pte Ltd | (ii) | Singapore | 30 Cecil Street #20-03 Prudential Tower, 049712 |
Savills (Singapore) Pte Ltd | Singapore | 30 Cecil Street #20-03 Prudential Tower, 049712 | |
Savills Property Management Pte Ltd | Singapore | 20 Martin Road #03-01/02 Seng Kee Building, 239070 | |
Savills Valuation & Professional | Singapore | 30 Cecil Street #20-03 Prudential Tower, 049712 | |
Services (S) Pte Ltd | |||
Savills Korea Advisors Realty | South Korea | 13/F Seoul Finance Center, 136 Sejong-daero Jung-gu, | |
Company Ltd | Seoul | ||
Savills Korea Company Ltd | South Korea | 13/F Seoul Finance Center, 136 Sejong-daero Jung-gu, | |
Seoul | |||
Savills Diseno y Construccion | Spain | Avda. Diagonal 609-615, Barcelona | |
Barcelona, SAU | |||
Savills Arquitectura SAU | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Savills Barcelona SAU | Spain | Avda. Diagonal 609-615, Barcelona | |
Savills Consultores Real Estate, SAU | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Savills Corporate Finance, SAU | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Savills RE Spain SAU | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Savills Valoraciones y Tasaciones SA | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Savills Consultores Inmobiliarios SA | Spain | Paseo de la Castellana, 81 28046 Madrid | |
Medasil Desarrollos S.L | Spain | calle Pedro I Pons, nº 9-11, Puerta 6, Planta 2. Barcelona | |
Loudden Bygg-och | Sweden | Box 6317, 102 35 Stockholm | |
Fastighetsservice AB | |||
Savills Förvaltning AB | Sweden | Regeringsgatan 48, 111 56 Stockholm | |
Savills Sweden AB | Sweden | Regeringsgatan 48, 111 56 Stockholm | |
Savills Sweden Investment AB | Sweden | Regeringsgatan 48, 111 56 Stockholm | |
Verbier Hospitality SA | Switzerland | 45 Route de Verbier Station, CH-1936 Verbier, Valais | |
Savills (Taiwan) Ltd | Taipei | 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, Taipei 110 | |
Savills Residential Services | Taipei | 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, Taipei 110 | |
(Taiwan) Ltd |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
256
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Savills Valuation & Professional | (iii) | Taipei | 21/F, No. 68, Sec. 5, Zhong-Xiao East Road, Taipei 110 |
Services (Taiwan) | |||
Savills (Thailand) Ltd | Thailand | 990 Abdulrahim Place Building, 26/F, Rama IV Road, | |
Silom Subdistrict, Bang Rak District, Bangkok | |||
Savills Services (Thailand) Limited | Thailand | 990 Abdulrahim Place Building, 26/F, Rama IV Road, | |
Silom Subdistrict, Bang Rak District, Bangkok | |||
Savills Real Estate LLC (Dubai) | United Arab | 22nd Floor, Arenco Tower, Sheikh Zayed Road, | |
Emirates | PO Box 3087 Dubai | ||
Savills Real Estate LLC (Sharjah) | United Arab | 2702C, Al Marzouqi Towers, King Faisal Street | |
Emirates | |||
Automotive Property Consultancy | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Holdings Ltd | |||
Automotive Property Consultancy Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
B Bids Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Buckleys Estate Agents Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Chesterfield & Co (Rentals) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Cordea Savills Investments Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Cureoscity Technologies Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Currell Residential Limited | United Kingdom | 9 Bonhill Street, London, EC2A 4DJ | |
Grosvenor Hill Ventures Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Hepher Dixon Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Holden Matthews Estate Agents Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Humphriss & Ryde Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Jago Dean PR Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
LIBRA Housing Advisory Services Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Mansfield Elstob Main Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Nash Bond Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
PCA Holdings Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
PCA Management Consultants | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Limited | |||
Portnalls Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Prime Purchase Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Rickitt Grant & Company Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
S F Securities Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills (Europe) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills (L&P) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills (NI) Ltd | United Kingdom | 2nd Floor, Longbridge House, 16-24 Waring Street, | |
Belfast, BT1 2DX, Northern Ireland |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
257
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Savills (Overseas Holdings) Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills (UK) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Advisory Services (L&P) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Advisory Services Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Asia Pacific Holding Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Asset Warehouse 1 Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Co-Investment | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Holdings Limited | |||
Savills Capital Advisors Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Commercial (Leeds) Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Commercial Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Finance Holdings plc | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Financial Services Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Holding Company Ltd | (i) | United Kingdom | 33 Margaret Street, London, W1G 0JD |
Savills India Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Italy Holding Limited | United Kingdom | 33 Margaret Street, London W1G 0JD | |
Savills KSA Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Lending Solutions Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Management Resources Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Management Resources | United Kingdom | 2nd Floor, Longbridge House, 16-24 Waring Street, | |
Northern Ireland Ltd | Belfast, BT1 2DX, Northern Ireland | ||
Savills ME Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Middle East Holdings Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Pension Trust Company Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Telecom Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Savills Trust Company Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Situu Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Situu Management Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Smith Woolley Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Smiths Gore Limited | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
The Currell Group Limited | United Kingdom | 9 Bonhill Street, London, EC2A 4DJ | |
The London Planning Practice Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Wellington Holdings Ltd | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
BTR Capital Advisors I, LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
BTR Capital Advisors II, Inc. | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
BTR Capital Advisors III, Inc. | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Gravitas Lease Audit Services LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
258
Country of | |||
Fully owned subsidiary | incorporation | Registered office | |
Gravitas Real Estate Solutions LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Kelly, Legan & Gerard Inc. | United States | 398 Park Avenue – 11th FL, New York, NY 10022 | |
Savills Dallas Lease Administration LLC | United States | 15660 N Dallas Pkway, Ste 1200 Dallas, TX 75248 | |
Macro Consultants LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Savills (L&P) Inc | United States | Unex House, 132–134 Hills Road, Cambridge, CB2 8PA, | |
United Kingdom | |||
Savills (ME) LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Savills America Ltd | United States | 399 Park Avenue – 11/F, New York, NY 10022 | |
Savills Gravitas Lease Audit | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Services LLC | |||
Savills Inc. | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Savills Rabbi Trust | (v) | United States | 570 Lexington Ave, New York, NY 10022 |
Savills Occupier Services Inc. | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Studley International, Inc | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Studley Advisors, Inc | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
SVS (GA) Inc. | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
T3 Reallty Advisors West Corp | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
T3 Reallty Advisors, LLC | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
The Great Studley Stamp Company | United States | 399 Park Avenue – 11th FL, New York, NY 10022 | |
Savills Vietnam Company Ltd | Vietnam | 21/F, Tòa Tây- Lotte Center Hanoi, 54 Lieu Giai Street, | |
Cong Vi Ward, Ba Dinh District, Hanoi City | |||
SVVN Price Valuation Limited | Vietnam | 17 Fl., Vincom Centre Building, 72 Le Thanh Ton Str., | |
Liability Company | Ben Nghe Ward, Dist 1, Ho Chi Minh City |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
259
Subsidiaries of which the Group | Country of | |||
owns less than 100% | % owned | incorporation | Registered office | |
Savills Investment Management | 71 | Australia | Level 36, Gateway, 1 Macquarie Place, | |
(Australia) Pty Limited | Sydney NSW 2000 | |||
Savills Retail Management Pty Ltd | (vi) | 55 | Australia | Level 25, 1 Farrer Place, Sydney, |
NSW 2000 | ||||
Savills Belux Group SA | 99.9 | Belgium | Avenue Louise 81, 1050 Brussels | |
DRC UK Whole Loan Fund (Feeder) | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
(GP) Ltd | PO Box 1348, Grand Cayman, KY1-1108, | |||
Cayman Islands | ||||
DRC UK Whole Loan Fund (GP) Ltd | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
PO Box 1348, Grand Cayman, KY1-1108, | ||||
Cayman Islands | ||||
European Real Estate Debt Fund II | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
(GP) Ltd | PO Box 1348, Grand Cayman, KY1-1108, | |||
Cayman Islands | ||||
European Real Estate Senior Debt | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
(GP 1) Ltd | PO Box 1348, Grand Cayman, KY1-1108, | |||
Cayman Islands | ||||
European Real Estate Senior Debt | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
(GP 2) Ltd | PO Box 1348, Grand Cayman, KY1-1108, | |||
Cayman Islands | ||||
European Real Estate Senior Debt | 71 | Cayman | 94 Solaris Avenue, Camana Bay, | |
(GP 3) Ltd | PO Box 1348, Grand Cayman, KY1-1108, | |||
Cayman Islands | ||||
Savills IM Japan Residential Fund II | 71 | Cayman | c/o Walkers Corporate Limited, Cayman | |
Feeder GP Ltd | Corporate Centre, 27 Hospital Road, | |||
George Town, Grand Cayman KY1-9008, | ||||
Cayman Islands | ||||
Savills Property Services (Shenzhen) | 85 | China | Unit 02, 9/F, China Resources Tower, | |
Company Ltd | No.2666, Keyuan South Road, Nanshan | |||
District, Shenzhen, 518000 | ||||
Savills Egypt | 55 | Egypt | Building 17, Street 210, Maadi, Cairo | |
Riviera Estates SAS | 75 | France | 11 Avenue Jean Medecin, 06000, Nice | |
Savills Investment Management SAS | 71 | France | 54–56 Avenue Hoche, 75008 Paris | |
Savills Fund Management GmbH | 71 | Germany | Rotfeder-Ring 7, D-60327 Frankfurt-am- | |
Main | ||||
Savills Fund Management Holding AG | 71 | Germany | Rotfeder-Ring 7, D-60327 | |
Frankfurt-am-Main | ||||
Savills Investment Management | 71 | Germany | Sonnenstrasse 19, Munich | |
(Germany) GmbH | ||||
Savills Investment Management (KVG) | 63.83 | Germany | Rotfeder-Ring 7, D-60327 | |
GmbH | Frankfurt-am-Main | |||
Jiayi Savills Property Services Ltd | 51 | Hong Kong | 23/F, Two Exchange Square, 8 Connaught | |
Place, Central | ||||
Savills Projects HK Ltd | 60 | Hong Kong | Rooms 1202-04, 12/F, 1111 King's Road, | |
Taikoo Shing |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
260
Subsidiaries of which the Group | Country of | |||
owns less than 100% | % owned | incorporation | Registered office | |
Savills Billion Property | 80 | Hong Kong | Rooms 805-813, 8/F, 1111 King's Road, | |
Management Ltd | Taikoo Shing | |||
Savills Investment Management | 71 | Hong Kong | Level 54, Hopewell Centre, 183 Queen’s | |
Asia Limited | Road East | |||
The Aurora Management Services Ltd | 80 | Hong Kong | Rooms 805-813, 8/F, 1111 King's Road, | |
Taikoo Shing | ||||
Savills Vignature Property | 70 | Hong Kong | Rooms 805-813, 8/F, 1111 King's Road, | |
Management Limited | Taikoo Shing | |||
Savills The Vision Property | 60 | Hong Kong | Rooms 805-813, 8/F, 1111 King's Road, | |
Management Limited | Taikoo Shing | |||
Savills Property Services (India) | 55 | India | 15th Floor, SKAV SEETHALAKSHMI, | |
Private Limited | Corporation No.21, Kasturba Road, | |||
Bangalore-560001, Karnataka | ||||
PT Savills Advisory Services | 70 | Indonesia | Panin Tower – Senayan City, 16/F, Jl.Asia | |
Afrika Lot.19, Jakarta 10270 | ||||
PT Savills Management Services | 60 | Indonesia | Panin Tower – Senayan City, 16/F, Jl.Asia | |
Afrika Lot.19, Jakarta 10270 | ||||
PT CB Advisory | 60 | Indonesia | Panin Tower – Senayan City, 16/F, Jl.Asia | |
Afrika Lot.19, Jakarta 10270 | ||||
Savills Investment Management SGR | 71 | Italy | Via San Paolo 7, 20121 Milan | |
S.p.A | ||||
Savills Residential Italy SRL | (vi) | 51 | Italy | Via di Montoro, 8 – 00186 Roma (RM) |
JVF GP GK | 64.52 | Japan | c/o Akasaka International Accounting | |
Office 2-10-5 Akasaka, Minato-ku, Tokyo | ||||
Savills Investment Architecture | 71 | Japan | 3F BPR Place Kamiyacho, 1-11-9 Azabudai, | |
Design GK | 1 Chome-11 Azabudai, Minato-ku, Tokyo | |||
106-0041 | ||||
SIM Real Estate GK | 71 | Japan | 3F BPR Place Kamiyacho, 1-11-9 Azabudai, | |
1 Chome-11 Azabudai, Minato-ku, Tokyo | ||||
106-0041 | ||||
DRC European Real Estate | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
Debt Fund III (GP) Ltd | JE2 4UF | |||
DRC European Real Estate | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
Debt Fund III (SLI GP) Ltd | JE2 4UF | |||
DRC European Real Estate | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
Debt Fund IV (GP) Ltd | JE2 4UF | |||
DRC European Real Estate Debt Fund | 71 | Jersey | 4th Floor, Ensign House, 29 Seaton Place, | |
IV (SLI) LP | St. Helier, JE2 3QL | |||
DRC Evergreen Whole Loan (GP) Ltd | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
JE2 4UF | ||||
DRC UK Whole Loan Fund II (GP) Ltd | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
JE2 4UF | ||||
European Real Estate Senior Debt 4 | 71 | Jersey | The Forum, 4 Grenville Street, St Helier, | |
(GP) Ltd | JE2 4UF |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
261
Subsidiaries of which the Group | Country of | ||
owns less than 100% | % owned | incorporation | Registered office |
European Real Estate Senior Debt | 71 | Jersey | IFC 5, St Helier, JE1 1ST |
Fund (GP 7) Ltd | |||
Prime London Residential | 71 | Jersey | 3rd Floor Walker House, 28-34 Hill Street, |
Development Jersey GP Limited | St Helier, JE4 8PN | ||
Prime London Residential | 71 | Jersey | 3rd Floor Walker House, 28-34 Hill Street, |
Development Jersey II GP Limited | St Helier, JE4 8PN | ||
Savills Investment Management | 71 | Jersey | 3rd Floor, Walker House, 28-34 Hill St, St |
(Jersey) Limited | Helier, JE4 8PN | ||
DRC European Real Estate Debt Fund | 71 | Luxembourg | 6H Route de Treves, Senningerberg |
IV (GP II) Sarl | L-2633 | ||
DRC SIM Australia Real Estate Debt | 71 | Luxembourg | 10, rue C.M. Spoo |
Fund I (GP) Sarl | |||
European Real Estate Senior Debt 5 | 71 | Luxembourg | Airport Center Luxembourg 5, Heienhaff, |
(GP) Sarl | L-1736 Senningerberg | ||
European Real Estate Senior Debt 6 | 71 | Luxembourg | Airport Center Luxembourg 5, Heienhaff, |
(GP) Sarl | L-1736 Senningerberg | ||
European Real Estate Senior Debt 8 | 71 | Luxembourg | 6H Route de Treves, Senningerberg |
Sarl | L-2633 | ||
Savills IM European Fund V GP S.a.r.l | 71 | Luxembourg | 10, rue C.M. Spoo |
Savills IM Japan Residential Evergreen | 71 | Luxembourg | 10, rue C.M. Spoo |
Feeder Fund A (GP) Sarl | |||
Savills Investment Management | 63.83 | Luxembourg | 10, rue C.M. Spoo |
(Luxembourg) S.à r.l. | |||
Merx Macau Limited | 60 | Macau | Avenida da Praia Grande, nº 665, |
Edifício Great Will, 16º andar, Unidade A | |||
Actus Sdn. Bhd. | 60 | Malaysia | D-2-5, Megan Avenue 1, 189, Jalan Tun |
Razak, 50400 Kuala Lumpur, Wilayah | |||
Persekutuan | |||
Savills Projects Malaysia Sdn. Bhd. | 60 | Malaysia | Unit 1336, Suite-A, Lobby 7, Block A, |
Damansara Intan No 1, Jalan SS20/27 | |||
47400 Petaling Jaya, Selangor | |||
LCA Core Sdn. Bhd. | 60 | Malaysia | 18-2, Jalan PJU 5/4, Dataran Sunway, Kota |
Damansara, 47810 Petaling Jaya, Selangor | |||
Lucia Sdn. Bhd. | 60 | Malaysia | 18-2, Jalan PJU 5/4, Dataran Sunway, Kota |
Damansara, 47810 Petaling Jaya, Selangor | |||
Savills Investment Management B.V | 71 | Netherlands | Vida Building, Kabelweg 57, 1014 BA |
Amsterdam | |||
Savills & Partners LLC | 65 | Oman | Hatat Complex Suite 30-36, Ground Floor, |
P O Box 1475, Ruwi, Sultanate of Oman, | |||
Location – Wadi Adai – Romellah | |||
Savills Investment Management | 71 | Poland | Gdanski Business Center – building B |
SP Z o.o. | (3rd floor), Inflancka 4 st., 00-189 Warsaw | ||
Absolute Maintenance Services Pte Ltd | 80 | Singapore | 13 Kaki Bukit Place Absolute Maintenance |
Building S416191 |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
262
Subsidiaries of which the Group | Country of | ||
owns less than 100% | % owned | incorporation | Registered office |
Savills Projects Holdings Pte Ltd | 60 | Singapore | 168 Robinson Road, #12 Capital Tower, |
Singapore 068912 | |||
Savills Projects Singapore Pte Ltd | 60 | Singapore | 168 Robinson Road, #12 Capital Tower, |
Singapore 068912 | |||
Savills Investment Management Pte. | 71 | Singapore | 83 Amoy Street, 01-01 Singapore 069960 |
Limited | |||
Savills IM Japan Value Fund II GP Pte | 71 | Singapore | 61 Robinson Road #16-02, Robinson |
Ltd | Centre Singapore 068893 | ||
Savills IM Japan Residential Fund II GP | 71 | Singapore | 61 Robinson Road #16-02, Robinson |
Pte Ltd | Centre Singapore 068893 | ||
Solute Pte Ltd | 80 | Singapore | 13 Kaki Bukit Place Absolute Maintenance |
Building S416191 | |||
Savills Investment Management SLU | 71 | Spain | Paseo de la Castellana, 81 28046 Madrid |
Savills Investment Management AB | 71 | Sweden | Regeringsgatan 48, 5th Floor, 111 56 |
Stockholm | |||
Cordea Savills SLP GP Limited | 71 | United Kingdom | Wemyss House, 8 Wemyss Place, |
Edinburgh, EH3 6DH | |||
Cordea Savills SLP II LP | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Edinburgh, EH3 9WJ | |||
Cordea Savills SLP LP | 71 | United Kingdom | Wemyss House, 3 Wemyss Place, |
Edinburgh, EH3 6DH | |||
DRC Savills Investment | 71 | United Kingdom | 4th Floor, 6 Duke Street St James's, |
Management LLP | London, SW1Y 6BN | ||
Savills IM Residential UK Ltd | 71 | United Kingdom | 33 Margaret Street, London, W1G 0JD |
Prime London Residential | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Development Co-Investment GP LLP | Edinburgh, EH3 9WJ | ||
Prime London Residential | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Development Co-Investment II GP LLP | Edinburgh, EH3 9WJ | ||
Prime London Residential | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Development Co-Investment II LP | Edinburgh, EH3 9WJ | ||
Prime London Residential | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Development Co-Investment LP | Edinburgh, EH3 9WJ | ||
Prime London Residential | 71 | United Kingdom | 33 Margaret Street, London, W1G 0JD |
Development GP LLP | |||
Prime London Residential | 71 | United Kingdom | 33 Margaret Street, London, W1G 0JD |
Development II GP LLP | |||
Savills IM SLP II GP LLP | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Edinburgh, EH3 9WJ | |||
Savills IM Euro V Co-Investment | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
GP LLP | Edinburgh, EH3 9WJ | ||
Savills IM Euro V Co-Investment LP | 71 | United Kingdom | 50 Lothian Road, Festival Square, |
Edinburgh, EH3 9WJ | |||
Savills IM Holdings Limited | 71 | United Kingdom | 33 Margaret Street, London, W1G 0JD |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
263
Subsidiaries of which the Group |
Country of |
||
owns less than 100% |
% owned |
incorporation |
Registered office |
Savills IM Investco Limited |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Savills IM Investments Limited |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Savills IM JVF II Co-Investment GP LLP |
71 |
United Kingdom |
50 Lothian Road, Festival Square, |
Edinburgh, EH3 9WJ |
|||
Savills IM JVF II Co-Investment LP |
71 |
United Kingdom |
50 Lothian Road, Festival Square, |
Edinburgh, EH3 9WJ |
|||
Savills IM SLP General Partner LLP |
71 |
United Kingdom |
Wemyss House, 8 Wemyss Place, |
Edinburgh, EH3 6DH |
|||
Savills IM SLP III GP LLP |
71 |
United Kingdom |
Citypoint, 65 Haymarket Terrace, |
Edinburgh, EH12 5HD |
|||
Savills IM SLP III LP |
71 |
United Kingdom |
Citypoint, 65 Haymarket Terrace, |
Edinburgh, EH12 5HD |
|||
Savills IM UK One Limited |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Savills IM UK Property Ventures No.1 |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
GP Limited |
|||
Savills IM UK Two Limited |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Savills Investment Management (UK) |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Limited |
|||
Savills Investment Management LLP |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Savills Investment Management |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Overseas Holdings Limited |
|||
Simply Affordable Homes 1 GP Ltd |
42.6 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Simply Affordable Homes 2 GP Ltd |
42.6 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Simply Affordable Homes LLP |
42.6 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
Stratland Management Limited |
71 |
United Kingdom |
33 Margaret Street, London, W1G 0JD |
DRCSIM US Holdings LLC |
71 |
United States |
Corporation Service Company, 251 Little |
Falls Drives, Wilmington, Delaware |
|||
SGDN Ltd |
51 |
United Kingdom |
Stuart House, City Road, Peterborough, |
PE1 1QF |
|||
SGDN Limited |
51 |
United Kingdom |
Stuart House, City Road, Peterborough, |
PE1 1QF |
|||
Savills Investment Management Inc |
75 |
United States |
251 Little Falls Drive, Wilmington, |
Delaware |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
264
Country of | |||
Joint Ventures | % owned | incorporation | Registered office |
Shanghai No.1 and FPD Savills Property | 51 | China | Building No1, 3rd Floor, No.400, Fangchun |
Management Company Ltd | Rd, Pudong District, Shanghai | ||
Zhuhai Hengqin Savills Assets | 51 | China | Room 105-1460, No. 6 Baohua road, |
Operation Management Company Ltd | Hengqin new area, Zhuhai | ||
Chuangtuo Savills Property | 50 | China | Rm 408, No.481 Zhengli Rd., Yangpu |
Management (Shanghai) Co., Ltd. | District, Shanghai | ||
Beijing Baiwang Savills Real Estate | 49 | China | Room 501, 5F, Block 2, No. 2 South Yongjie |
Company Ltd | Rd., Haidian District, Beijing | ||
Beijing Wangjing High Tech Savills | 40 | China | Room 406, 4/F, Tower A, No. 2 Lize |
Consultancy Services Co., Ltd. | Zhonger Road, Chaoyang District, Beijing | ||
Foshan Meizhi & Savills Property | 40 | China | Unit 2404, Building No.4, Midea Fortune |
Management Co., Ltd | Plaza, 1 Chende Road, Shunde District, | ||
Foshan | |||
Gohigh Savills (Shanghai) Property | 49 | China | Unit 1904,-5-G, Main Tower, No. 2 Huashan |
Management Company Ltd | Road, Jingan District, Shanghai | ||
Guangzhou Nansi & Savills Property | 49 | China | Room 603, No.1 Jingmao Zhonger Street, |
Management Co Ltd | Nan Sha Area, Guang Zhou | ||
Hengqin Shenhe Savills Property | 34 | China | Room 405, No. 49-59 Bao Xing Road, |
Management (Shanghai) Co., Ltd | Hengqin, Zhuhai | ||
Shanghai Qihui Savills Property | 49 | China | Rm 548, 9F, No. 583 Lingmu Rd., Xuhui |
Services Company Ltd | District, Shanghai | ||
Beijing Haizhi Savills Property | 30 | China | Zone B, 6/F, Tower B, No.18 Zhong Guan |
Management Company Ltd | Cun Avenue, Haidian District, Beijing | ||
Beijing Hongyuan Savills Property | 40 | China | Unit 104, F1,Building 4, No.2 Jinsui Avenue, |
Management Company Ltd | Shunyi District, Beijing | ||
Shenzhen Qianhai Savills Property | 40 | China | Unit 05, 3/F, Qianhai Shengang Innovation |
Services Company Ltd | Center D, No.4008, Menghai Avenue, | ||
Qianhai Shengan Cooperation District, | |||
Shenzhen | |||
Shanghai Kuntin Savills Property | 40 | China | Room 252, 2F, No. 309 Meilong Rd, Xuhui |
Management Company Ltd. | District, Shanghai | ||
Shanghai Dobe Savills Property | 35 | China | Room 111, 1F, Building 11, No. 2447 Jiaotong |
Management Company Ltd. | Rd, Putuo District, Shanghai | ||
Daisy Savills Property Management | 35 | China | Unit 301, 3/F, No. 18 Jianguomennei |
(Beijing) Company Ltd | Avenue, Chaoyang District, Beijing | ||
Suzhou Industrial Park Hengtai Savills | 35 | China | Unit 701, Building 1, Moon Bay International |
Property Management Company Ltd | Business Center, 9 Cuiwei Avenue, Suzhou | ||
Industrial Park, Suzhou | |||
Suzhou Jiarun Savills Property | 34 | China | Unit 1211, 12th Floor, Room 101, Building |
Management Co. Ltd | 1, Xinneng Business Plaza, No. 99 Si'an | ||
Street, Suzhou Industrial Park | |||
Beijing Yintai Savills Property | 33 | China | Unit 402C, 401, 4/F, Building 3, No.2 |
Management Company Limited | Jianguomenwai Avenue, Chaoyang District, | ||
Beijing | |||
Beijing BHG Savills Retail & Property | 24.5 | China | Room 107, Block 1, No 208, Lane 4, North |
Management Company Ltd | Xiangyun Road, Daxing District, Beijing |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
265
Country of | |||
Joint Ventures | % owned | incorporation | Registered office |
Beijing Oriental Savills Asset | 30 | China | Unit 303, 3/F No, 9 West Street |
Management Company Ltd | Wangfujing, Dongcheng District, Beijing | ||
Nanjing Smart Science Technology | 30 | China | Room 468, Floor 4, building 9, Xingzhihui |
Park & Savills Property Management | Business Garden, No. 19, Xinghuo Road, | ||
Company Ltd | Jiangbei New District, Nanjing, 210008 | ||
Shanghai South Hongqiao & Savills | 49 | China | No.5 Building, No. 277 Huqingping |
Property Management Co., Ltd. | Highway, Minhang District, Shanghai | ||
Savills Raycom Property Management | 30 | China | Unit B1-08, No.2 South Road Ke Xue Yan, |
(Beijing) Company Ltd | Haidian District, Beijing | ||
Shanghai Landsea Savills Property | 49 | China | 9F, No. 583 Lingling Rd., Xuhui District, |
Management Co., Ltd. | Shanghai | ||
Shanghai Poly Savills Property | 30 | China | Unit 01, 20/F, South Tower, No.528 South |
Management Company Ltd | Pu Dong Road, Pu Dong, Shanghai | ||
Shanxi Zhidi Savills Property Services | 30 | China | 4/F, Block 3, No.42 Xing Shan Temple, Xian |
Company Ltd | City | ||
Anlian Savills Property Management | 25.5 | China | Unit B02(b), 19/F, Anlian Plaza, No.4018, |
(Shenzhen) Ltd | Jintian Road, Futian District, Shenzhen | ||
COSCO Savills Property Development | 25 | China | Unit N, 8th Floor, Building 1, No.720 |
Company Ltd | and 728 Pudong Ave, Pudong District, | ||
Shanghai | |||
Beijing Financial Street Savills Property | 20 | China | B1/F, Tong Tai Building, 33 Financial Street, |
Management Company Ltd | West District, Beijing. | ||
Beijing Zhong Bao Savills Property | 10 | China | 603 China Life Tower, 16 Chao Wai Street, |
Management Company Ltd | Chaoyang District, Beijing | ||
Tianjin TEDA Savills Property Services | 10 | China | B2/F, Zone A1, Teda MSD, No.56 Second |
Company Ltd | Avenue, Economy & Technology | ||
Development Zone, Tianjin | |||
Xi’an Qujiang Savills Property Services | 30 | China | Room 1109-1, 11th Floor, No.2 Building of |
Co., Ltd. | Huashang Culture&Media Center, No. 3001 | ||
Yanxiang Road, Xujiang New District, Xi’an | |||
Beijing Hualian Fashion Savills Property | 24.5 | China | Rm.304, Block1, Land 4, No.208 North |
Management Co., Ltd. | Xiangyun Road, Daxing District, Beijing | ||
Heng Fu Savills Property Management | 49 | China | Building A1, No. 57 Fuxing West Road, |
(Shanghai) Co., Ltd | Xuhui District, Shanghai | ||
Jintai Savills Property Management | 35 | China | Rm 702, 6F, No.938 Jinshajiang Rd., Putuo |
(Shanghai) Co., Ltd | District, Shanghai | ||
Shanghai Construction Savills Property | 49 | China | Rm 1023, 10F, No. 390-408 East Beijing |
Management Co., Ltd | Rd., HuangPu District, Shanghai | ||
Suzhou Caohu Science and Technology | 34 | China | Rm.2201, Floor 22, Caohu Building, No.1 |
Industry Services Co., Ltd. | Qianjing Road, Caohu Street, Suzhou | ||
Wuhan Qiaokou Anju Savills Urban | 45 | China | 15F, Gaoxin Building, No.298 Nanxu |
Operation Service Co., Ltd. | Avenue, Gaoxin District, Zhenjiang | ||
Zhenjiang Gaoxin Savills Asset | 49 | China | Room 201, 2F, Tongxin Health Service |
Management Co., Ltd | Industrial Park, No.49 Gutian 4th Road, | ||
Hanjiadun Street, Qiaokou District, Wuhan | |||
Guardian Management (Hong Kong) | 50 | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing |
Limited |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
266
Country of | ||||
Joint Ventures | % owned | incorporation | Registered office | |
Greenmile Ventures Ltd | 50 | Hong Kong | Vistra Corporate Services Centre, | |
Wickhams Cay II, Road Town, Tortola, | ||||
VG1110, British Virgin Islands | ||||
Greenwalls Gateway Ltd | 50 | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Lippo-Savills Property Management | 50 | Hong Kong | Room 2301, 23/F, Tower One, Lippo Centre, | |
Ltd | 89 Queensway | |||
QF Savills Property Management Ltd | 50 | Hong Kong | Rooms 805-813, 8/F, 1111 King's Road, | |
Taikoo Shing | ||||
Skywise Technology & Innovation | 50 | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Company Limited | ||||
G.E.S. Holdings Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
G.E.S. Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
Crescendo Environmental Services Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
Crescendo Property Services Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
East Sun Cleaning Services Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
Express Engineering (Macau) Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
Jade Forist Ltd | 50 | Macau | Alameda Dr. Carlos D’Assumpcao, No. 181 – | |
187, Edf. Kong Fai Com. 7/F, K – P | ||||
Winnerway Security Guards Company | 50 | Macau | Alameda Dr. Carlos D'Assumpcao, No. | |
Ltd | 181 – 187, Centro Comercial do Grupo | |||
Brilhantismo, 7 andar, J & H | ||||
Savills (Johor) Sdn Bhd | (ii) | 49 | Malaysia | Upper Penthouse, Wisma RKT, No. 2 Jalan |
Raja Abdullah, Off Jalan Sultan Ismail, | ||||
50300 Kuala Lumpur | ||||
Savills (KL) Sdn Bhd | (ii) | 49 | Malaysia | Upper Penthouse, Wisma RKT, No. 2 Jalan |
Raja Abdullah, Off Jalan Sultan Ismail, | ||||
50300 Kuala Lumpur | ||||
Savills (Malaysia) Sdn Bhd | (ii) | 49 | Malaysia | Upper Penthouse, Wisma RKT, No. 2 Jalan |
Raja Abdullah, Off Jalan Sultan Ismail, | ||||
50300 Kuala Lumpur | ||||
Savills (Penang) Sdn Bhd | (ii) | 49 | Malaysia | Upper Penthouse, Wisma RKT, No. 2 Jalan |
Raja Abdullah, Off Jalan Sultan Ismail, | ||||
50300 Kuala Lumpur | ||||
Savills (Agency) Sdn Bhd | (ii) | 49 | Malaysia | Upper Penthouse, Wisma RKT, No. 2 Jalan |
Raja Abdullah, Off Jalan Sultan Ismail, | ||||
50300 Kuala Lumpur | ||||
Liverpool ONE Management | 50 | United Kingdom | 33 Margaret Street, London, W1G 0JD | |
Company Ltd | ||||
DRCSIM US LLC | 36.21 | United States | Corporation Service Company, 251 Little | |
Falls Drives, Wilmington, Delaware |
38. Group investments
continued
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
267
Country of | ||||
Associates | % owned | incorporation | Registered office | |
KSH Guardian Property Management | 50 | Hong Kong | 7/F, 1111 King’s Road, Taikoo Shing | |
Ltd | ||||
Yuen Sang Property Management | 50 | Hong Kong | Room 2501, 25/F, Alexandra House, 18 | |
Company Ltd | Chater Road, Central | |||
Savills Taiping Property Management | 45 | Hong Kong | Rooms 805-813, 8/F, 1111 King’s Road, | |
Ltd | Taikoo Shing | |||
Guardian Home Ltd | 40 | Hong Kong | Shop No. 301, 3rd Floor, Chun Shek | |
Shopping Centre, Chun Shek Estate, | ||||
1 Shing Tin Street, Shatin, New Territories | ||||
Hengli Savills Property Management | 49 | Hong Kong | Unit 1806-08, Tower Two, Lippo Centre, | |
Limited | 89 Queensway | |||
Glory Crest Ltd | 40 | Hong Kong | Shop No. 301, 3rd Floor, Chun Shek | |
Shopping Centre, Chun Shek Estate, | ||||
1 Shing Tin Street, Shatin, New Territories | ||||
Guardian Home (Chun Shek) Ltd | 40 | Hong Kong | Shop No. 301, 3rd Floor, Chun Shek | |
Shopping Centre, Chun Shek Estate, | ||||
1 Shing Tin Street, Shatin, New Territories | ||||
Cordea Nichani India Advisers Private | 17.75 | India | Ground Floor Front, 19 Kumarakrupa | |
Limited | Road, Bangalore 560001 | |||
Rootcorp Ranganatha Limited | 17.75 | Mauritius | 4th Floor, Raffles Tower, 19 Cybercity, Ebene | |
Monaco Real Estates SARL | 51 | Monaco | 10 Ter Boulevard Princesse Charlotte | |
H Investment Pte Ltd | 40.5 | Singapore | 3 Bishan Place #05-01 CPF Bishan | |
Building S 579838 | ||||
Huttons Asia Pte Ltd | 40.5 | Singapore | 3 Bishan Place #05-01 CPF Bishan | |
Building S 579838 | ||||
Huttons Capital Pte Ltd | 40.5 | Singapore | 3 Bishan Place #05-01 CPF Bishan | |
Building S 579838 | ||||
Huttons International Pte Ltd | 40.5 | Singapore | 3 Bishan Place #05-01 CPF Bishan | |
Building S 579838 | ||||
Huttons Pte Ltd | 33.8 | Singapore | 3 Bishan Place #05-01 CPF Bishan | |
Building S 579838 | ||||
Really Pte Ltd | (ii) | 32.7 | Singapore | 70 Shenton Way #09-12 EON Shenton S |
079118 | ||||
Vucity | 29.68 | United Kingdom | 10 Orange Street, Haymarket, London, | |
WC2H 7DQ | ||||
Realplus Joint Stock Company | 30 | Vietnam | House SH11-12, Floor 2, Q2 Thao Dien | |
Residence, No. 21 Vo Truong Toan Street, | ||||
Thao Dien Ward, Thu Duc City, Ho Chi | ||||
Minh City |
continued
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2024
Annual Report and Accounts 2024
268
Country of | |||
Fully owned entities not controlled by the Group | incorporation | Registered office | |
Liffey Valley Management Ltd | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
Mahon Point Management Ltd | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
White Water (Newbridge) Limited | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
White Water Management Limited | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
White Water Residential DAC (Designated Activity Company) | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
2GCSSO Limited | (iv) | Ireland | 33 Molesworth Street, Dublin 2 |
Liverpool ONE Management Services Ltd | (iv) | United | 33 Margaret Street, London, |
Kingdom | W1G 0JD | ||
Moor House Management Services Ltd | (iv) | United | 33 Margaret Street, London, |
Kingdom | W1G 0JD |
(i)
Directly owned by Savills plc.
(ii)
Both ordinary and redeemable shares owned by the Group.
(iii) Partnership interest.
(iv) The Group does not control these entities (as defined by IFRS 10) and they are not consolidated in to the Group’s financial statements.
(v)
The Group does not have a shareholding in these employee benefit trusts, however, these trusts are specifically designed to serve the purposes of the
sponsoring group entity and to ensure that there will be minimal risk of any conflict arising between the duties of the trustees and the interest of the group
entity. Accordingly, these trusts are under the de facto control of the group entity. IFRS 10 control assessment also supports that these trusts are under
control of the group entity and are consolidated into the Group’s financial statements on that basis.
(vi)
Listed as a non-wholly owned subsidiary as equity ownership is less than 100% however due to the Group having a present ownership interest in the
remaining equity shares subject to put options, it has been determined that there is no non-controlling interest present and the entity is accounted for as a
wholly owned subsidiary.
The Group holds a number of investments in associates and joint ventures where it holds more than 50% of the
shareholding in these entities. Similarly, the Group holds a number of joint ventures and associates where the
shareholding is less than 50% and three subsidiaries where the shareholding is less than 50%. In all these instances
management has determined the appropriate classification of these shareholdings based on the contractual
arrangements and agreements in place, in particular focusing on the parties who have the ability to direct/control the
relevant activities of the investment taking into account representation on the Board of Directors, ability to participate/
38. Group investments
continued
COMPANY STATEMENT OF FINANCIAL POSITION
as at 31 December 2024
Notes
2024
£m
2023
£m
Assets: Non-current assets
Property, plant and equipment
7
3.0
2.9
Right-of-use assets
8.1
37.1
41.8
Intangible assets
9
1.0
1.3
Investments in subsidiaries
10
195.6
182.4
Deferred income tax assets
11
3.1
2.6
Defined benefit pension surplus
15
0.6
–
Trade and other receivables
12
6.2
6.9
246.6
237.9
Assets: Current assets
Trade and other receivables
12
92.2
75.1
Income tax receivable
–
0.7
Cash and cash equivalents
13
136.5
118.9
228.7
194.7
Liabilities: Current liabilities
Lease liabilities
8.2
6.2
6.0
Trade and other payables
14
27.6
14.6
Employee benefit obligations
15
0.3
0.2
34.1
20.8
Net current assets
194.6
173.9
Total assets less current liabilities
441.2
411.8
Liabilities: Non-current liabilities
Lease liabilities
8
47.9
54.2
Provisions
16
2.7
2.5
50.6
56.7
Net assets
390.6
355.1
Equity:
Share capital
17
3.6
3.6
Share premium
105.0
104.9
Other reserves
38.2
38.2
Retained earnings
243.8
208.4
Total equity
390.6
355.1
The profit after income tax of the Company for the year was £51.9m (2023: £66.1m).
The Company financial statements on pages 269 and 270 were authorised for issue by the Board of Directors on
12 March 2025 and were signed on its behalf by:
J J M Ridley
S J B Shaw
Savills plc
Registered in England No. 2122174
269
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
COMPANY STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2024
Notes
Attributable to owners of the Company
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve*
£m
Merger
relief
reserve*
£m
Share-based
payments
reserve**
£m
Retained
earnings**
£m
Total
equity
£m
Balance at 1 January 2024
3.6
104.9
0.3
37.9
60.1
148.3
355.1
Profit for the year
–
–
–
–
–
51.9
51.9
Other comprehensive
income/(loss):
Remeasurement of defined
benefit pension scheme
15
–
–
–
–
–
0.6
0.6
Tax on items taken to other
comprehensive income
11
–
–
–
–
–
(0.2)
(0.2)
Total comprehensive
income for the year
–
–
–
–
–
52.3
52.3
Employee share option scheme:
–
Value of services provided
18
–
–
–
–
31.4
–
31.4
–
Exercise of share options
–
–
–
–
(24.0)
7.1
(16.9)
–
Tax on employee share
option schemes
11
–
–
–
–
0.1
–
0.1
–
Exercise of share options: tax on
employee share option schemes
11
–
–
–
–
(0.1)
–
(0.1)
Issue of share capital
–
0.1
–
–
–
–
0.1
Dividends
19
–
–
–
–
–
(31.4)
(31.4)
Balance at 31 December 2024
3.6
105.0
0.3
37.9
67.5
176.3
390.6
Notes
Attributable to owners of the Company
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve*
£m
Merger
relief
reserve*
£m
Other
reserves*
£m
Share-based
payments
reserve**
£m
Retained
earnings**
£m
Total
equity
£m
Balance at 1 January 2023
3.6
104.9
0.3
34.9
3.0
52.5
128.9
328.1
Profit for the year
–
–
–
–
–
–
66.1
66.1
Other comprehensive
income/(loss):
Remeasurement of defined
benefit pension scheme
15
–
–
–
–
–
–
(1.3)
(1.3)
Tax on items taken to other
comprehensive income
–
–
–
–
–
–
0.4
0.4
Total comprehensive
income for the year
–
–
–
–
–
–
65.2
65.2
Employee share option scheme:
–
Value of services provided
18
–
–
–
–
–
28.8
–
28.8
–
Exercise of share options
–
–
–
–
–
(21.3)
3.6
(17.7)
–
Tax on employee share
option schemes
11
–
–
–
–
–
0.2
–
0.2
–
Exercise of share options:
tax on employee share
option schemes
11
–
–
–
–
–
(0.1)
–
(0.1)
Transfer between reserves
–
–
–
3.0
(3.0)
–
–
–
Dividends
19
–
–
–
–
–
–
(49.4)
(49.4)
Balance at 31 December 2023
3.6
104.9
0.3
37.9
–
60.1
148.3
355.1
*
Included within other reserves on the face of the statement of financial position are the capital redemption reserve, the merger relief reserve and other
reserves as disclosed above.
**
Included within retained earnings on the face of the statement of financial position are share-based payments reserve and retained earnings as disclosed above.
270
Annual Report and Accounts 2024
NOTES TO THE COMPANY FINANCIAL STATEMENTS
Year ended 31 December 2024
1. General information
The Company is a public limited company incorporated and domiciled in England
of its registered office is 33 Margaret Street, London W1G 0JD . The Company’s registered number is 2122174.
2. Basis of preparation
These financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (‘FRS 101’) and in accordance with the provisions of the Companies Act 2006.
In preparing these financial statements, the Company applies the recognition, measurement, and disclosure
requirements of UK adopted international accounting standards (‘IFRS’), but makes amendments where necessary in
order to comply with the Companies Act 2006 and has excluded certain information as permitted by FRS 101. There
is no material effect of applying the measurement differences between UK-IAS and FRS 101.
The financial statements are prepared on a going concern basis and under the historical cost convention.
As permitted by Section 408 of the Companies Act 2006, the Company is exempt from presenting an income
statement and statement of comprehensive income. The amount of profit for the year of the Company is disclosed
in the Company balance sheet and statement of changes in equity. The Company has produced its own income
statement and statement of comprehensive income for approval by its Board. The Company receives dividends
from subsidiaries and charges subsidiaries for the provision of Group-related services.
Disclosure exemptions under FRS 101
The following disclosure exemptions have been adopted under FRS 101:
§
Presentation of a cash flow statement and related notes
§
Capital management disclosures
§
Disclosure of information relating to new standards not yet effective and not yet applied
§
Disclosures in respect of the key management personnel compensation
§
Disclosure of related party transactions between wholly-owned subsidiaries and parents within a group
§
IFRS 2 Share based-payment disclosures.
Where required, equivalent disclosures are given in the consolidated financial statements.
3. Going concern
The Group’s business activities together with the factors likely to affect its future development performance and
position are set out in the Strategic Report. The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are all described in the Chief Financial Officer’s review on pages 27 to 29. Note 3 to the Group’s
financial statements covers the Directors’ assessment of the going concern of the Group and therefore the Directors
have a reasonable expectation that the Company also has adequate resources to continue as a going concern for at
least 12 months from the date of the approval of the financial statements until at least June 2026. For this reason they
continue to adopt the going concern basis of accounting in preparing the financial statements.
4. Fees payable to the Company’s auditors, Ernst & Young LLP, and its associates
Fees payable to the Company’s auditors for the audit of the Company were £1.0m (2023: £0.9m). Note 9.1 in the
consolidated financial statements includes the requirement to disclose fees for other services on a consolidated basis.
5. Critical accounting estimates and significant judgements
The preparation of financial statements in conformity with FRS 101 requires the use of accounting estimates and
assumptions. It also requires management to exercise its judgement in the process of applying our accounting policies.
We continually evaluate our estimates, assumptions and judgements based on available information and experience.
As the use of estimates is inherent in financial reporting, actual results could differ from these estimates.
Our critical accounting estimates are those estimates that carry a significant risk of resulting in a material adjustment
to the carrying amount of assets and liabilities within the next financial year. Significant judgements are those made by
management in applying our material accounting policies that have a material impact on the amounts presented in the
financial statements.
Our critical accounting estimates and significant judgements are described in the following notes to the financial
statements. They can be identified by the following symbol
.
Note
Critical estimate
Significant judgement
Valuation of defined benefit pension assets and liabilities
15
271
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
6. Financial risk management
6.1 Foreign exchange risk
The Company recharges some of the Group’s international subsidiaries with respect to their allocation of central
corporate costs and in some instances receives recharged costs from its international subsidiaries with respect to
the cost of global initiatives incurred by those subsidiaries. The Company endeavours to invoice its subsidiaries
in sterling to minimise the risk of exposure to foreign currency movements. Similar to the Group, when there is a
material committed foreign currency exposure the foreign exchange risk will be hedged, however the Company does
not actively seek to hedge risks arising from foreign current transactions due to the high costs associated with such
hedging. The impact of foreign exchange risk is considered minimal for the Company.
6.2 Interest rate risk
The Company has interest-bearing assets in the form of cash and cash equivalents and short-term interest bearing
loans issued to its subsidiaries. The impact of interest rate changes is not considered material for the Company,
with the value of interest income recognised in the period having a greater dependency on the level of cash and
cash equivalents and intercompany loans maintained by the Company. The value of interest-bearing assets that the
Company holds in any given period is primarily determined by the management of the UK Group’s cash pooling
arrangement and the timing and value of dividends paid up by the Company’s subsidiary.
6.3 Credit risk
The Company’s credit risk arises from cash and cash equivalents, as well as outstanding receivables primarily due
from the Group’s subsidiaries.
As at 31 December 2024, all of the Company’s cash was held with Barclays Bank PLC (2023: all cash), which is an
A+ rated bank.
Significant individual intercompany receivable balances include £33.0m (2023: £27.9m) due from Savills (UK) Limited
and £40.0m due from Savills Holding Company Limited (2023: £30.4m), which relates to a loan (2023: £30.0m).
There are no other significant individual receivable balances as at 31 December 2024 and 31 December 2023.
6.4 Liquidity risk
The Company is part of the Group’s UK cash pooling arrangement, which is managed by the Group Treasury function
and provides the Company access to the Group’s revolving credit facility and other centrally managed sources of
financing. Management monitors rolling forecasts of the Group’s cash and cash equivalents on the basis of expected
cash flows.
The table below analyses the Company’s financial liabilities into relevant maturity groupings based on the remaining
period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows, unless otherwise stated.
£m
Less than
a year
Between
1 and 2 years
Between
2 and 5 years
Over
5 years
Total
contractual
undiscounted
cash flows
Carrying
values
2024
Lease liabilities
7.9
7.9
23.8
23.8
63.4
54.1
Trade and other payables
14.7
–
–
–
14.7
14.7
22.6
7.9
23.8
23.8
78.1
68.8
2023 restated*
Lease liabilities
7.9
7.9
23.8
29.7
69.3
60.2
Trade and other payables
4.1
–
–
–
4.1
4.1
10.1
7.9
23.8
29.7
71.5
64.3
*
2023 has been restated due to a recalculation of the Company’s financial liabilities included within trade and other payables.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
272
Annual Report and Accounts 2024
7. Property, plant and equipment
The Company’s accounting policy for property, plant and equipment is the same as set out in Note 17
of the Group’s consolidated financial statements. All of the Company’s property, plant and equipment
relates to equipment.
Equipment
£m
Cost
At 1 January 2024
11.1
Additions
1.6
At 31 December 2024
12.7
Accumulated depreciation and impairment
At 1 January 2024
8.2
Charge for the year
1.5
At 31 December 2024
9.7
Net book value
At 31 December 2024
3.0
Freehold
property
£m
Equipment
£m
Total
£m
Cost
At 1 January 2023
0.1
10.4
10.5
Additions
–
1.1
1.1
Disposals
(0.1)
(0.4)
(0.5)
At 31 December 2023
–
11.1
11.1
Accumulated depreciation and impairment
At 1 January 2023
–
7.1
7.1
Charge for the year
–
1.5
1.5
Disposals
–
(0.4)
(0.4)
At 31 December 2023
–
8.2
8.2
Net book value
At 31 December 2023
–
2.9
2.9
273
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
8. Leases
The Company enters into lease agreements for the use of buildings only. The Company’s accounting policy
for leases is set out in Note 18 of the Group’s consolidated financial statements.
8.1 Right-of-use assets
2024
£m
2023
£m
Cost
At 1 January
62.2
55.8
Additions
–
7.5
Disposals
–
(1.1)
At 31 December
62.2
62.2
Accumulated depreciation and impairment
At 1 January
20.4
15.8
Charge for the year
4.7
4.7
Disposals
–
(0.1)
At 31 December
25.1
20.4
Net book value
At 31 December
37.1
41.8
8.2 Lease liabilities
2024
£m
2023
£m
At 1 January
60.2
58.8
Additions
–
7.5
Repayments of lease liabilities
(7.9)
(8.2)
Unwinding of discount
1.8
2.1
Closing amount as at 31 December
54.1
60.2
Current
6.2
6.0
Non-current
47.9
54.2
Cash outflows with respect to leases, which includes short-term lease payments, totalled £7.9m (2023: £8.6m).
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
274
Annual Report and Accounts 2024
8.3 Net investment in sub-leases
The Company sub-leases office space to a subsidiary of the Group. Sub-lease receivables (net investment in sub-lease)
amount to £7.2m as at 31 December 2024 (31 December 2023: £7.9m), split between non-current of £6.2m and current
of £1.0m (31 December 2023: non-current £6.9m, current £1.0m). The current balance is included in other receivables.
The future lease payments receivable are as follows:
2024
£m
2023
£m
Less than a year
1.0
1.0
Between 1 and 2 years
1.0
1.0
Between 2 and 3 years
1.0
1.0
Between 3 and 4 years
1.0
1.0
Between 4 and 5 years
1.0
1.0
Over 5 years
3.1
4.1
Total undiscounted cash flows
8.1
9.1
Discounting
(0.9)
(1.2)
Carrying value of net investment in sublease
7.2
7.9
9. Intangible assets
The Company’s intangible assets consist of computer software only. The Company’s accounting policy
for intangible assets is set out in Note 16 of the Group’s consolidated financial statements.
2024
£m
2023
£m
Cost
At 1 January
4.8
10.0
Additions
0.1
–
Disposals
–
(5.2)
At 31 December
4.9
4.8
Accumulated amortisation and impairment
At 1 January
3.5
8.2
Amortisation charge for the year
0.4
0.5
Disposals
–
(5.2)
At 31 December
3.9
3.5
Net book value
At 31 December
1.0
1.3
275
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
10. Investments in subsidiaries
Investments in subsidiaries are held at cost, less any provisions for impairment. An impairment loss
is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use.
Refer to Note 18 for the accounting policy with respect to the investment in subsidiaries indirectly
owned, which is linked with the accounting policy for share-based payment arrangements.
Direct
investments
in subsidiaries
£m
Investments
in subsidiaries
indirectly owned
– share-based
payment
contribution
£m
Investments
in EBT
£m
Total
£m
At 1 January 2023
81.5
51.5
43.4
176.4
Increase due to IFRS 2 share-based payment
contribution to subsidiaries
–
26.4
–
26.4
Increase due to capital contribution to EBT
–
–
23.6
23.6
Decrease due to EBT contributions from subsidiaries
–
(26.1)
–
(26.1)
Decrease due to write-off of investment in EBT
upon exercise of options
–
–
(17.9)
(17.9)
At 31 December 2023
81.5
51.8
49.1
182.4
Increase due to IFRS 2 share-based payment
contribution to subsidiaries
–
28.6
–
28.6
Increase due to capital contribution to EBT
–
–
22.9
22.9
Decrease due to EBT contributions from subsidiaries
–
(20.0)
–
(20.0)
Decrease due to write-off of non-recoverable
contributions from subsidiaries
–
(1.3)
–
(1.3)
Decrease due to write-off of investment in EBT
upon exercise of options
–
–
(17.0)
(17.0)
At 31 December 2024
81.5
59.1
55.0
195.6
A full list of the Company’s subsidiaries are listed in the consolidated financial statements Note 37. The Company
directly owns Savills Holding Company Limited, all other subsidiaries in the Group are indirectly owned. The carrying
value of the investment in the Company’s subsidiary is assessed for impairment by comparing the carrying value of
the investment to the underlying net assets of the subsidiary. No impairment was identified during the year.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
276
Annual Report and Accounts 2024
11. Taxation
The Company’s accounting policy for taxation is set out in Note 13 of the Group’s consolidated
financial statements.
The tax credited to other comprehensive income is as follows:
2024
£m
2023
£m
Tax on items that will not be reclassified to profit or loss
Deferred tax on remeasurement of defined benefit pension scheme
(0.2)
0.3
Deferred tax on pension – effect of tax rate change
–
0.1
(0.2)
0.4
Tax on items relating to components of other comprehensive income
(0.2)
0.4
The tax credited/(charged) to reserves is as follows:
2024
£m
2023
£m
Deferred tax on share-based payment arrangements
–
0.1
Current tax on IFRS 16 lease recognition release
0.1
0.1
Deferred tax on IFRS 16 recognition release
(0.1)
(0.1)
Tax on items recognised directly in reserves
–
0.1
The deferred income tax assets and liabilities at 31 December are as follows:
2024
£m
2023
£m
Deferred tax assets
– Deferred tax asset to be recovered after more than 12 months
2.4
2.1
– Deferred tax asset to be recovered within 12 months
1.2
0.7
3.6
2.8
Deferred tax liabilities
– Deferred tax liability to be recovered after more than 12 months
(0.2)
(0.1)
– Deferred tax liability to be recovered within 12 months
(0.3)
(0.1)
(0.5)
(0.2)
Deferred tax asset – net
3.1
2.6
2024
£m
2023
£m
At 1 January – net asset
2.6
1.9
Amount credited to the income statement
0.8
0.3
Tax (charged)/credited to other comprehensive income
– Defined benefit pension scheme – actuarial remeasurements
(0.2)
0.3
– Defined benefit pension scheme – effect of UK tax rate change
–
0.1
Tax (charged)/credited to reserves
– Employee benefits
–
0.1
– IFRS 16 initial lease recognition released to reserves
(0.1)
(0.1)
At 31 December – net asset
3.1
2.6
277
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
11. Taxation
continued
The movement on the deferred tax account is shown below:
Deferred tax assets
Provisions
and other*
£m
Retirement
benefits
£m
Share-based
payments
£m
Total
£m
Balance at 1 January 2023
1.3
–
1.5
2.8
Reclassifications to deferred tax liabilities
–
(0.4)
–
(0.4)
Tax credited to other comprehensive income
–
0.3
–
0.3
Effect of tax rate change within other comprehensive income
–
0.1
–
0.1
Tax charged to reserves
(0.1)
–
0.1
–
At 31 December 2023
1.2
–
1.6
2.8
Tax credited to the income statement
0.8
–
0.1
0.9
Tax charged to reserves
(0.1)
–
–
(0.1)
At 31 December 2024
1.9
–
1.7
3.6
Set-off of deferred tax liabilities pursuant to set-off provisions
(0.5)
Deferred tax asset at 31 December 2024 in the statement of financial position
3.1
Deferred tax asset at 31 December 2023 in the statement of financial position (net of £0.2m set-off)
2.6
Deferred tax liabilities
Accelerated
capital
allowances
£m
Retirement
Benefits
£m
Total
£m
Balance at 1 January 2023
(0.5)
(0.4)
(0.9)
Tax credited to the income statement
0.3
–
0.3
Reclassifications from deferred tax assets
–
0.4
0.4
At 31 December 2023
(0.2)
–
(0.2)
Tax charged to the income statement
(0.1)
–
(0.1)
Tax charged to other comprehensive income
–
(0.2)
(0.2)
At 31 December 2024
(0.3)
(0.2)
(0.5)
Set-off of deferred tax liabilities pursuant to set-off provisions
0.5
Deferred tax liabilities at 31 December 2024 in the statement of financial position
–
Deferred tax liabilities at 31 December 2023 in the statement of financial position (net of £0.2m set-off)
–
Net deferred tax asset
At 31 December 2024
3.1
At 31 December 2023
2.6
*
Provisions and Other primarily includes deferred tax assets relating to accruals and provisions for expenses not deductible until paid.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
278
Annual Report and Accounts 2024
12. Trade and other receivables
Trade receivables are recognised initially at their transaction price and subsequently measured
at amortised cost less provision for impairment.
2024
£m
2023
£m
Non-current
Net investment in sub-lease (Note 8.3)
6.2
6.9
6.2
6.9
Current
Amounts owed by subsidiary undertakings
82.5
65.7
Other receivables
2.4
2.4
Prepayments
7.3
7.0
92.2
75.1
The carrying value of trade and other receivables is approximate to their fair value. Trade and other receivables do not
contain material allowances for impairment.
Amounts owed by subsidiary undertakings to the Company include £40.0m of intercompany loans (2023: £30.0m).
With the exception of intercompany loans, amounts owed by subsidiary undertakings to the Company are unsecured,
interest-free and generally cleared within the month. Intercompany loans are unsecured and repayable on demand.
The intercompany loan balance as at 31 December 2024 attracts an arm’s-length rate of interest, charged at a market
rate determined by the aggregation of average daily SONIA, 12-month IBOR reform published credit adjustment
spread and 1%. The loans are classified as current as repayment is expected within 12 months of the reporting date.
Amounts owed by subsidiary undertakings do not contain material allowances for impairment.
13. Cash
Cash at bank and in hand includes cash in hand and deposits held on call with banks, together with other
short-term highly liquid investments with original maturities of three months or less and working capital
overdrafts, which are subject to an insignificant risk of changes in value.
2024
£m
2023
£m
Cash at bank and in hand
136.5
118.9
136.5
118.9
The carrying value of cash and cash equivalents approximates their fair value.
Cash and cash equivalents are denominated in the following currencies:
2024
£m
2023
£m
Sterling
136.4
118.7
Euro
0.1
0.1
Australian dollar
–
0.1
136.5
118.9
279
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
14. Trade and other payables
Trade and other payables are initially measured at fair value and subsequently measured at amortised cost,
using the effective interest rate method.
2024
£m
2023
£m
Trade payables
11.8
1.1
Amounts owed to subsidiary undertakings
0.5
0.2
Other taxation and social security
1.0
1.3
Accruals
14.3
12.0
27.6
14.6
Amounts due to subsidiary undertakings are unsecured, interest-free and repayable on demand.
The Company’s accruals include bonus and commission accruals of £11.9m (2023: £9.1m).
15. Retirement benefit plans
The Company’s accounting policy for retirement benefit plans is set out in Note 27 of the Group’s
consolidated financial statements.
Refer to Note 27 of the Group’s financial statements for further information on the critical estimate with
respect to the valuation of defined benefit assets and liabilities.
The Company participates in the Savills UK Group Personal Pension Plan, a defined contribution plan and the UK Plan,
a defined benefit plan. The Company’s proportion of the Group’s pension costs as they relate to past service is 5.53%
in both the current and prior year. Further details on the pension schemes can be found in Note 27 of the Group’s
consolidated financial statements.
The table below summarises the Company’s defined benefit pension amounts:
2024
£m
2023
£m
Non-current asset in the statement of financial position
0.6
–
Net interest income included in finance income
–
0.1
Actuarial gain/(loss) included in other comprehensive income
0.6
(1.3)
The amounts recognised in the Company’s statement of financial position are as follows:
2024
£m
2023
£m
Present value of funded obligations
(9.4)
(10.8)
Fair value of plan assets
10.0
10.8
Non-current asset in the statement of financial position
0.6
–
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
280
Annual Report and Accounts 2024
The movement in the defined benefit asset for the UK Plan over the year is as follows:
2024
2023
Present value
of obligation
£m
Fair value of
plan assets
£m
Total
£m
Present value
of obligation
£m
Fair value of
plan assets
£m
Total
£m
At 1 January
(10.8)
10.8
–
(10.3)
11.5
1.2
Interest (expense)/income
(0.5)
0.5
–
(0.5)
0.6
0.1
Remeasurements:
–
Loss on plan assets, excluding
amounts included in interest income
–
(1.0)
(1.0)
–
(1.0)
(1.0)
–
Gain/(loss) from change in
financial assumptions
1.4
–
1.4
(0.3)
–
(0.3)
–
Gain from change in
demographic assumptions
0.2
–
0.2
0.1
–
0.1
–
Experience losses
–
–
–
(0.1)
–
(0.1)
Benefit payments
0.4
(0.4)
–
0.3
(0.3)
–
At 31 December
(9.3)
9.9
0.6
(10.8)
10.8
–
The Company had £0.3m of employee benefit obligations as at 31 December 2024 (2023: £0.2m), relating to holiday
pay and long service leave.
16. Non-current provisions
The Company holds dilapidation provisions with respect to leasehold properties. The Company’s accounting
policy for provisions is set out in Note 25 of the Group’s consolidated financial statements.
£m
At 1 January 2024
2.5
Provided during the year
0.2
At 31 December 2024
2.7
Expected utilisation of non-current provision
8 years
17. Share capital
Details of the share capital of the Company are shown in Note 30 in the consolidated financial statements.
281
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
18. Share-based payment arrangements
The Company operates an equity share-based payment arrangement whereby employees are granted shares
in Savills plc, namely the Performance Share Plan (‘PSP’), the Deferred Share Plan (‘DSP’), the Deferred
Share Bonus Plan (‘DSBP’) and the Sharesave Scheme. Refer to Note 31 of the Group’s consolidated financial
statements for further discussion.
The Company’s accounting policy for share-based payments is the same as set out in Note 32 of the Group’s
consolidated financial statements.
The Company recognises the share-based payment charge relating to its employees in the income statement
with the share-based payment charge relating to employees of the Group’s subsidiaries recognised as an
increase to the Company’s cost of investment in subsidiary non-current asset on the statement of financial
position, with a corresponding entry to the Company’s share-based payment reserve. When contributions
from the Group’s subsidiaries are received, these are recognised against the carrying value of the investment
in subsidiary non-current asset to the extent that they relate to the IFRS 2 charge (see Note 10).
The Company has established the Savills plc 1992 Employee Benefit Trust (the ‘EBT’), the purposes of which
are to grant awards to employees, to acquire shares in the Company pursuant to the Savills Deferred Share
Bonus Plan and the Savills Deferred Share Plan and to hold shares in the Company for subsequent transfer
to employees on the vesting of the awards granted under the schemes. From a Company perspective, cash
contributions to the EBT are recognised as an investment in subsidiary non–current asset. When treasury
shares are transferred out of the EBT upon vesting, the related cost of investment in subsidiary non-current
asset is derecognised. (see Note 10).
Movements in share schemes
2024 number of awards (‘000)
Sharesave
awards
DSP
awards
DSBP
awards
Outstanding at 1 January
89
641
618
Granted
–
115
161
Exercised
–
(170)
(105)
Cancelled
(2)
–
–
Forfeited/lapsed
(2)
(101)
–
Outstanding at 31 December
85
485
674
Exercisable at 31 December
Weighted average exercise price for awards outstanding at the beginning
of the year, exercised in the year and forfeited/lapsed in the year (pence)
759.0
–
–
Weighted average exercise price for awards granted and outstanding
at end of the year (pence)
759.0
–
–
Weighted average remaining contractual life (years)
0.8
3.0
1.2
Weighted average share price at the date of exercise for awards exercised
in the year (pence)
n/a
1,020.3
965.5
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
282
Annual Report and Accounts 2024
2023 number of awards (‘000)
Sharesave
awards
PSP
awards
DSP
awards
DSBP
awards
Outstanding at 1 January
101
543
2
570
Granted
–
141
–
255
Exercised
–
(33)
(2)
(206)
Cancelled
(7)
–
–
–
Forfeited/lapsed
(5)
(10)
–
(1)
Outstanding at 31 December
89
641
–
618
Exercisable at 31 December
Weighted average exercise price for awards outstanding at the
beginning of the year, exercised in the year and forfeited/lapsed
in the year (pence)
757.0
–
–
–
Weighted average exercise price for awards granted and
outstanding at end of the year (pence)
757.0
–
–
–
Weighted average remaining contractual life (years)
1.8
2.4
–
1.6
Weighted average share price at the date of exercise for
awards exercised in the year (pence)
n/a
976.6
945.2
945.2
Fair value of options
For details on the fair value of awards see Note 31 of the consolidated financial accounts.
The fair values of options granted in the period are shown below.
Grant
Grant date
Deferred period
Fair value pence
DSBP 2024
24 April 2024
3 years
1,042.0
PSP 2024 (EPS/ROCE)
17 May 2024
5 years
1,107.5
PSP 2024 (TSR)
17 May 2024
5 years
695.6
19. Dividends
Final dividends are recognised as a liability in the Company’s financial statements in the period in which they
are approved in a general shareholders’ meeting. Interim dividends are recognised when paid.
2024
£m
2023
£m
Amounts recognised as distribution to equity holders in the year:
In respect of the previous year
Ordinary final dividend of 13.9p per share (2022: 13.4p)
19.0
18.4
Supplemental interim dividend of 2.0p per share (2022: 15.6p)
2.7
21.5
In respect of the current year
Interim dividend of 7.1p per share (2023: 6.9p)
9.7
9.5
31.4
49.4
The Board recommends a final dividend of 14.5p per ordinary share (amounting to £19.8m), alongside the
supplemental interim dividend of 8.6p per ordinary share (amounting to £11.7m), to be paid on 22 May 2025 to
Shareholders on the register at 11 April 2025. These financial statements do not reflect this dividend payable.
The total paid and recommended ordinary and supplemental dividend for the 2024 financial year comprises an
aggregate distribution of 30.2p per ordinary share (2023: 22.8p per ordinary share).
283
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
20. Employees
2024
£m
2023
£m
Basic salaries and wages
13.9
13.0
Profit share and commissions
8.2
7.4
Wages and salaries
22.1
20.4
Social security costs
3.2
3.0
Other pension costs
0.8
0.7
Share-based payments
2.8
2.5
28.9
26.6
The monthly average number of employees (including Directors) for the year was 206 (2023: 194).
21. Key management compensation
The key management for the year ended 31 December 2024 comprised the Board of Directors and the GEB members.
Directors’ remuneration is contained in the Remuneration Report on pages 129 to 162. See Note 11.3 of the consolidated
accounts for further information on key management compensation.
22. Related party transactions
There were no significant related party transactions during the year.
NOTES TO THE COMPANY FINANCIAL STATEMENTS
continued
Year ended 31 December 2024
284
Annual Report and Accounts 2024
Constant currency
Information on non-GAAP measures
The Group refers to revenue and underlying profit on a constant currency basis which are both non-GAAP
measures. The Group generates revenues and profits in various territories and currencies because of its
international footprint. Those results are translated on consolidation at the foreign exchange rates prevailing
at the time. These exchange rates vary from year to year, so the Group presents some of its results on a
constant currency basis. Constant currency results are calculated by translating the current year revenue
and underlying profit using the prior year exchange rates. This measure allows the Group to assess the
results of the current year compared to the prior year, excluding the impact of foreign currency movements.
See Note 10 for further information on non-GAAP measures.
The constant currency effect on revenue, reported profit and underlying profit is summarised below:
2024
£m
Constant
currency
effect
£m
2024 at
Constant
currency
£m
Revenue
2,404.0
(49.3)
2,453.3
Profit before tax
88.3
(1.7)
90.0
Underlying profit before tax
130.4
(2.4)
132.8
The Group’s segmental results for the current year are presented below in constant currency:
2024 at constant currency
Transaction
Advisory
£m
Consultancy
£m
Property
and Facilities
Management
£m
Investment
Management
£m
Unallocated
£m
Total
£m
Revenue
United Kingdom – commercial
111.0
233.8
337.1
39.6
–
721.5
United Kingdom – residential
183.3
51.2
52.6
–
–
287.1
Total United Kingdom
294.3
285.0
389.7
39.6
–
1,008.6
CEME
152.3
83.9
108.3
49.5
–
394.0
Asia Pacific – commercial
136.2
101.3
465.3
6.6
–
709.4
Asia Pacific – residential
17.8
–
–
–
–
17.8
Total Asia Pacific
154.0
101.3
465.3
6.6
–
727.2
North America
292.3
31.2
–
–
–
323.5
Revenue
892.9
501.4
963.3
95.7
–
2,453.3
Underlying profit/(loss) before tax
United Kingdom – commercial
16.7
27.1
27.7
3.3
(10.4)
64.4
United Kingdom – residential
20.5
6.7
6.9
–
–
34.1
Total United Kingdom
37.2
33.8
34.6
3.3
(10.4)
98.5
CEME
(10.5)
7.8
(3.7)
6.6
–
0.2
Asia Pacific – commercial
7.2
0.5
23.5
0.4
–
31.6
Asia Pacific – residential
(0.9)
–
–
–
–
(0.9)
Total Asia Pacific
6.3
0.5
23.5
0.4
–
30.7
North America
3.6
(0.2)
–
–
–
3.4
Underlying profit/(loss) before tax
36.6
41.9
54.4
10.3
(10.4)
132.8
APPENDICES
285
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Constant currency
continued
The constant currency effect on the Group’s segmental results for the current year is presented below:
2024 – constant currency effect
Transaction
Advisory
£m
Consultancy
£m
Property and
Facilities
Management
£m
Investment
Management
£m
Unallocated
£m
Total
£m
Revenue
United Kingdom – commercial
–
–
–
–
–
–
United Kingdom – residential
–
–
–
–
–
–
Total United Kingdom
–
–
–
–
–
–
CEME
(8.1)
(1.6)
(5.1)
(1.3)
–
(16.1)
Asia Pacific – commercial
(6.4)
(3.5)
(13.7)
(0.4)
–
(24.0)
Asia Pacific – residential
(0.6)
–
–
–
–
(0.6)
Total Asia Pacific
(7.0)
(3.5)
(13.7)
(0.4)
–
(24.6)
North America
(7.8)
(0.8)
–
–
–
(8.6)
Revenue
(22.9)
(5.9)
(18.8)
(1.7)
–
(49.3)
Underlying profit/(loss) before tax
United Kingdom – commercial
–
–
–
–
–
–
United Kingdom – residential
–
–
–
–
–
–
Total United Kingdom
–
–
–
–
–
–
CEME
(0.4)
(0.4)
(0.2)
(0.2)
–
(1.2)
Asia Pacific – commercial
(0.5)
–
(0.6)
–
–
(1.1)
Asia Pacific – residential
–
–
–
–
–
–
Total Asia Pacific
(0.5)
–
(0.6)
–
–
(1.1)
North America
(0.1)
–
–
–
–
(0.1)
Underlying profit/(loss) before tax
(1.0)
(0.4)
(0.8)
(0.2)
–
(2.4)
APPENDICES
continued
286
Annual Report and Accounts 2024
SHAREHOLDER INFORMATION
Key dates for 2025
Annual General Meeting
14 May 2025
Financial half-year end
30 June 2025
Announcement of half-year results
14 August 2025
Website
Visit our investor relations website www.savills.com for full up-to-date investor relations information, including the
latest share price, recent Annual and Half-Year Reports, results presentations and financial news.
Shareholder enquiries
For Shareholder enquiries please contact our Registrar, Equiniti (see below). For general enquiries please call our
Shareholder Services helpline on: +44 (0) 371 384 2018 (Lines are open from 8.30am to 5.30pm, Monday to Friday,
excluding bank holidays). For further administrative queries in respect of your shareholding, please access our
Registrar’s website at www.shareview.co.uk.
Electronic communications
If you would prefer to receive Shareholder communications electronically in future, including your Annual and Half-
Year Reports and notices of meetings, please visit our Registrar’s website, www.shareview.co.uk and follow the link
to ‘Register for e-communications’ under the Shareholder Services section.
Half-Year Report
Like many other listed public companies, we no longer circulate printed Half-Year Reports to Shareholders. Rather,
half-year results’ statements are published on the Company’s website. We believe that this is of benefit to those
Shareholders who do not wish to be burdened with such paper documents, and to the Company, as it is consistent
with our target of saving printing and distribution costs.
Professional advisors and service providers
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
Cannon Place
78 Cannon Street
London EC4N 6AF
Registrar
Equiniti
Highdown House
Yeoman Way
Worthing
West Sussex BN99 3HH
Statutory auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
Joint Stockbrokers
UBS Investment Bank
5 Broadgate
London EC2M 2QS
Deutsche Numis
45 Gresham Street
London EC2V 7BF
Principal Bankers
Barclays Bank PLC
1 Churchill Place
London E14 5RB
287
OVERVIEW
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
Cautionary note regarding forward-looking statements
Certain statements included in this Annual Report are forward-looking and are therefore subject to risks, assumptions
and uncertainties that could cause actual results to differ materially from those expressed or implied because they
relate to future events. These forward-looking statements include, but are not limited to, statements relating to the
Company’s expectations. Forward-looking statements can be identified by the use of relevant terminology including
the words: ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘intends’, ‘forecasts’, ‘plans’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’,
‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology and include
all matters that are not historical facts. They appear in a number of places throughout this Annual Report and include
statements regarding our intentions, beliefs or current expectations and those of our Officers, Directors and employees
concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies
and the businesses we operate.
Other factors that could cause actual results to differ materially from those estimated by the forward-looking
statements include, but are not limited to:
§
global economic business conditions;
§
monetary and interest rate policies;
§
foreign currency exchange rates;
§
equity and property prices;
§
the impact of competition, inflation;
§
changes to regulations, taxes;
§
changes to consumer saving and spending habits; and
§
our success in managing the above factors.
Consequently, our actual future financial condition, performance and results could differ materially from the plans,
goals and expectations set out in our forward-looking statements. Accordingly, no assurance can be given that
any particular expectation will be met and readers are cautioned not to place undue reliance on forward-looking
statements which speak only at their respective dates.
The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of
new information, future events or otherwise.
SHAREHOLDER INFORMATION
continued
288
Annual Report and Accounts 2024
Printed by a carbon neutral company to the EMAS standard and Environmental Management System certified to ISO 14001. This
document is printed on paper made of material from well-managed, FSC
®
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This publication has been manufactured using 100% offshore wind electricity sourced from UK wind.
100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and, on average 99% of any waste
associated with this production will be recycled and the remaining 1% used to generate energy.
The paper is Carbon Balanced with Woodland Trust, UK’s largest woodland conservation charity, providing a carbon removal scheme
that creates new native woodland right here, in the UK.
Through protecting standing forests, under threat of clearance, carbon is locked-in, that would otherwise be released.
Savills plc
33 Margaret Street
London W1G 0JD
T: +44 (0)20 7499 8644
www.savills.com
Registered in England
No. 2122174
Savills plc
Annual Report and Accounts 2024