14th Apr 2015 10:39
LONDON (Alliance News) - M Winkworth PLC Tuesday reported higher pretax profit in 2014, boosted by sales in its franchised and country offices, and said that while pre-election uncertainty will damp the property market in 2015, it will enjoy a "post-election bounce".
The estate agent reported a 13.9% rise in pretax profit to GBP1.9 million, from GBP1.7 million in 2013, as sales grew 11.3% to GBP5.5 million from GBP4.9 million.
It said its franchised offices sales were up 8% at GBP50.2 million from GBP46 million due to an 8% growth in property sales and a 9% increase in rental income. Revenue rose 21% in its country offices.
Although a strengthening pound and increased stamp duty on properties over GBP935,000 led to a 15% decline in transactions in its central London business, revenue still grew by 2% with rental income 14% higher and average commissions increasing by 13% as a result of higher value properties being sold.
Winkworth opened six new offices in 2014, five of which are in the south-east and south-west of England, and one international office in Spain. Poor performing offices were closed in Walthamstow, Sheffield, South Woodford and India.
Two new offices have already been opened in the UK in 2015, and the company intends to open a further six during the year.
It added that its recently implemented Clients Services Department and Corporate Relocation Service are expected to provide new streams of income, and its quest in helping landlords find high quality tenants should improve its lettings proposition and increase its weight from 35% to nearer 50% of its turnover.
Winkworth joined peers in warning that uncertainty ahead of May's UK General Election would hit the property market, but it also expects a bounce back afterwards,
"Experience shows that it is traditional for the property market to be affected by uncertainty before elections, with activity returning to above normal seasonal levels after the event," Chief Executive Dominic Agace said in a statement.
"We expect this trend to be borne out in 2015, with the property market remaining below last year's highly active level until polling day. Assuming a conclusive result, we believe that the market will enjoy a post-election bounce, restoring transactions to 2014 levels. We anticipate that prices will recoup the weakness of the opening months and show modest appreciation for the year as a whole," he added.
The company will pay a total dividend of 5.9 pence, up 11.3% from 5.4p in 2013.
Shares in Winkworth were untraded Tuesday morning, last trading at 133.05 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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