16th Jan 2019 10:10
LONDON (Alliance News) - M Winkworth PLC lifted its fourth quarter dividend on Wednesday as it anticipated full-year profit to be slightly ahead and revenue broadly in line with consensus, despite a "challenging" market for the estate agent franchisor.
Winkworth highlighted that the UK residential sales market continued to be challenging in 2018. In particular, stock availability remained "low" while there were "weak" transaction numbers in London.
Winkworth noted that prime central London prices have "stabilised" around 15% to 20% below the 2014 peak levels. Prices in Greater London, however, have only slipped 10%.
For 2018, revenue is expected to be "within 5%" of market expectations. Meanwhile, pretax profit is anticipated to be higher than in 2017 and "slightly ahead" of market consensus, which lies at GBP1.4 million. The firm continues to have a strong net cash position.
"We are proud of what the group was able to achieve in 2018 in a market still suffering from uncertainty, and this is further testimony to the hard work and dedication of our franchisees," Winkworth Chief Executive Officer Dominic Agace said.
During the year, Winkworth increased its franchised outlets to 100 from 99 at the end of 2017. The number of new franchise applications, however, rose by around 80%. The firm, therefore, expects 2019 to see "further opportunities to grow new franchises."
Winkworth hiked its fourth interim dividend to 1.9 pence per share, up 2.7% from 1.85p the year prior. For 2018 as a whole, the firm boosted its dividend 2.8% to 7.45p per share compared to 7.25p the year before.
"While the outlook remains hard to forecast," Agace added, "the market fundamentals remain sound with interest rates low, real wage growth and record levels of employment. We are encouraged by the sharp increase in applicants on our site for both property purchases and rentals seen in December."
Shares in Winkworth were untraded at 110.00 pence on Wednesday.
The firm expects to deliver its 2018 annual results on or around April 3.
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