Knight Frank profits jump 14% to £166.7m led by resilient global markets

Results for the year ended 31 March 2018 were:

• Group turnover up 10% to £525.9m (2017: £476.2m)
• Group profit before tax up 14% to £166.7m (2017: £145.7m)
• Strong balance sheet with net assets at £262.9m (2017: £224.7m)
• Asia-Pacific operations in Knight Frank delivered record turnover and profit, with the firm’s businesses in Singapore and Hong Kong achieving their best years yet

Alistair Elliott, senior partner and group chairman commented: “I am pleased to report another very strong set of results for the group.  Our turnover increased by 10% in the face of volatile markets and political conditions around the world and we improved our margins with profit up 14%. We believe that this is a reflection of the success of our concentration on organic and strategic investment in people over the past five years and is a tribute to the quality of our teams across the globe. If we reflect on our progress over the ten years since the financial crisis, there is good reason to feel confident. Since 2008, we have substantially increased the scale, breadth and scope of our business and, recognising the cyclical nature of our markets, we have retained profits in order to build a strong balance sheet that has no net debt. Our investment in technology continues apace as we continue to put our people and clients at the heart of what we do. Through our technology board, we investigate and adopt technologies that will improve client service and are right for our business without impeding on the personal relationships, on which we remain firmly focused. We continue to grow our global network, focusing on the 12 gateway cities that represent locations where we believe we can make the greatest impact. Our Asia Pacific operations delivered record turnover and profit, with our businesses in Singapore and Hong Kong achieving their best years yet. Our global service lines outperformed, with record years for capital markets in Europe and Asia Pacific and records for our valuation and advisory businesses in Europe, Asia Pacific and MEA and for our office agency business in Europe. Commenting on the performance of Knight Frank India, Shishir Baijal, Chairman & Managing Director said, “India’s performance and contribution to the company’s achievements in the last year has been noteworthy. 2017-18 was one of the best years in terms of revenue with a significant rise in profits for the India operations. We have seen consistent growth across all our services, beating the general market sentiments, basis the value-based services provided to our clients. In the next few quarters we are looking at entering a new phase of growth adding to our specialisations as well as our staff count to ensure greater market reach.”