3rd Apr 2019 08:23
LONDON (Alliance News) - Estate and letting agent franchisor M Winkworth PLC said Wednesday its profit and revenue rose last year despite challenging markets, as its rental business continues to grow.
Shares in Winkworth were 6.3% higher at 111.65 pence on Wednesday.
In 2018, pretax profit widened 7.1% to GBP1.5 million from GBP1.4 million the year prior. This was after revenue rose 11% to GBP6.0 million from GBP5.4 million in 2017.
"We are pleased with our results for 2018, achieved in a sales market which remains testing," Winkworth Chief Executive Officer Dominic Agace said. "A weaker outcome in sales was compensated for by ongoing growth in our very successful rentals business, which now accounts for half of group revenues."
Total gross revenue from its franchise network edged up to GBP46.5 million from GBP46.2 million the year prior. This was as property sales revenue fell 5.6% to GBP23.4 million but rentals revenue grew 8.5% to GBP23.1 million.
"After opening six new offices last year and reselling another six to new management, we expect this year to see new opportunities as some competing agencies seek to plug into to the Winkworth platform to grow their market share and others look to sell their portfolios", Agace added.
Winkworth did not proposed an interim dividend, in line with the year before.
"So far this year, we are generating new franchising applicants and a pipeline for new offices broadly in-line with 2018," Agace continued. "We expect a delay in some of the new applicants coming onboard as they await the outcome of Brexit negotiations, but we do envisage that these will come though once there is greater clarity."
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