If there were ever any illusions before, it was made crystal clear by yesterday’s half-year results that Savills shares are a play on interest rates. The company has been savaged by the global rate rises but as they approach their peak, this may be time to consider buying.
The umbilical connection to central bank parlours seems to have come as news to the stock market, which took it out on the shares. They had been recovering nicely from the pandemic, but Ukraine and rising inflation have given them a torrid 20 months.
The results read like the plot of a horror movie. Revenue fell only 2.5 per cent, but pre-tax profit collapsed from £50.4 million in the same period last year to £6 million.
