8th Sep 2015 09:46
LONDON (Alliance News) - Estate agent M Winkworth PLC on Tuesday posted a slight rise in revenue in the first half, but its profit was lower due to a slowdown in activity around the UK General Election in May, though the group said trading is in line with its expectations.
Winkworth said its pretax profit in the first half was down to GBP663,149 from GBP803,785 a year earlier, as the uncertainty around the General Election caused a slowdown in house sales, even as rental activity continued to be strong. Revenue for the half was up to GBP2.6 million from GBP2.5 million.
The company said its previous prediction that 2015 would prove to be a year of two halves is proving to be the case, as the uncertainty around the General Election meant the spring selling season, traditionally a strong period for estate agents, was quieter than normal.
But Winkworth said it does expect an improvement in the second half and said its regional offices are benefiting from wealthy home buyers baulking at paying high stamp duty costs on premium London properties when house price growth has started to slow down. The group said it thinks growth in the market will begin again in earnest in 2016 and said it looks well-positioned to benefit.
"After a first half negatively impacted by uncertainty around the election, activity has since picked up. We have continued to grow our rentals business and the newly-developed centralised services hold much promise," said Chief Executive Dominic Agace.
"With early signs of wage inflation starting to come through, we feel that the UK property market is now on a sound footing for further progress going into 2016. The company's trading for the current year continues to be in line with the board's expectations," Agace added.
Winkworth shares were down 4.7% to 147.75 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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