Savills' £60m staff bonanza

Savills almost doubled pre-tax profits from its estate agency arm to 6.3m in 2009 thanks to a second half surge in activity across the UK and also Asia Pacific.

But its expected bumper payout – set to be confirmed in its annual report due out soon – is more than double group-wide profits as other parts of the company suffered last year.

Savills reported a 24 per cent drop in underlying pre-tax profits to 25.2m for 2009 after widening losses at its financial services division and a sharp drop in consultancy profits offset better transaction earnings.

The group said its bonus is calculated and paid out on a division-by-division basis and was therefore driven by the turnaround in the estate agency business.

Its sale transaction profits in the UK rocketed by 320 per cent as the market picked up from the second quarter onwards and as it benefited from action to cut costs and trim staff.

Savills employs around 3,000 people in the UK and just under 20,000 worldwide.

The group specialises in high-end properties across London and the Home Counties, claiming to be the capital's market leader for sales over 5m.

Savills said a lack of houses on the market pushed prices back towards the peak seen in 2007, but added it was unclear over the 2010 outlook.

"It remains to be seen how the market will perform in 2010 with

significant personal tax rises and a general election in prospect during the spring selling season," said Savills.

The company is best known in the UK for its estate agency and commercial property investment businesses, although the group also operates in property planning and valuation consultancy, fund management, financial services and property management.

It also has a strong presence in Asia Pacific, which accounts for

around 38 per cent of group revenues.