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.
