Estate Agency giant Knight Frank has reported an 11% drop in pre-tax profits for the year ending 31 March attributed to the ongoing political uncertainty in the UK.
Knight Frank recorded profits of £148.4m, down from £166.7m the previous year. This was off the back of a 2% decrease in group turnover to £517.4m.
The company said it had experienced “widespread political and economic uncertainty” that resulted in a “slowing” in transactional activity across many of its principal markets.
It added that in the UK, its capital markets, valuations and residential lettings teams “excelled” and its regional commercial offices continued to perform “very strongly”.
Its assets under management grew by nearly 30% to £2.98bn and, in line with its “long-term strategic ambition” to extend the business into Continental Europe.
Alistair Elliott, senior partner and group chairman, said: “In closing, whilst the geopolitical turmoil remains self-evident and the prospects of a slowing world economy increase, it is evident that real estate remains at the forefront of investors’ minds.
“I believe Knight Frank is exceptionally well placed to engage with this capital when it is released noting that, in the range of options, property returns still appear competitive. Our much broader occupier offering will add further valuable insight.”
He added: “We lead the field in engagement with private wealth, which enhances our residential activity and enables a much-needed conduit into the broader real estate arena.It remains remarkable to me that whilst activity is constrained in some areas, our trading year to date is similar year on year. There is enormous scope for growth and we remain committed to building our platform.”