- Estate agent Savills said it expects its annual profit to be 'very significantly' ahead of the upper end of its previous range of expectations.

The company said that since its last trading update in November, it had experienced an extraordinarily strong final trading period, particularly in the UK and Asia Pacific regions.

It also had seen improved performances in Continental Europe, the Middle East and North America.

Savills reiterated that it had benefited from substantially lower levels of discretionary expenditure in respect of travel, entertaining and marketing events.

'These are expected to revert to more normal levels over the course of 2022,' it added.

It noted in the UK, however, that there was a definite shortage of sale stock, so it still expected moderation of activity in 2022. 'Looking to the year ahead, the group's previous expectations remain unchanged at this early stage,' Savills said.

'Inflationary pressures in many markets will result in employment costs increasing at the highest rate for many years and we anticipate that discretionary costs will progressively normalise.'

'In respect of trading revenues, at this stage, we anticipate some normalisation of commercial capital transaction volumes and a moderation of levels of activity in some residential markets, particularly in the UK.'

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