Savills results yesterday for the first six months of 2009 make those of Cushman & Wakefield look pretty poor. The guys from Grosvenor Place recorded revenues down 11% at £248m and a tiny profit of £100 000. Today the guys from Portland Place recorded revenues down 32% to £305m and a whopping great loss of £46m.
It is fairly easy to see how listed Savills managed to just stay in the black - down to a sterling performance from the property management business. It is very difficult to see how C&W made a loss. The business is controlled by the Italian Agnelli family. Only a brief account of trading is included in the accounts of a holding company called EXOR which also controls Juventus football club (who made a profit)
EXOR gave C&W a $50m line of credit in March, of which C&W spent $20m. If the loan in not paid back by May 2012 EXOR have a right to buy shares in C&W at valuation minus 30% from the equity partners who still own 32% of the business. The partners will no doubt be hoping to at least match Savills in the second half of 2009.