Savills profits warning

The upmarket estate agent Savills announced its second profits warning in two months yesterday conceding that full-year 2008 profits would be "significantly below" analysts' expectations, and that it would "consider its dividend policy".

The group has struggled from falling house prices and a lack of willingness on the part of mortgage lenders to finance new transactions. The group said that while new deals are being completed, many pipeline agreements are collapsing. The group's shares closed down 9.6 per cent yesterday, at 226p.