6th Apr 2020 15:40
(Alliance News) - Estate and letting agent franchisor M Winkworth PLC on Monday raised its 2019 dividend, as profit and revenue increased on rising transactions and contributions from recent acquisitions.
For the year, pretax profit rose by 12% to GBP1.6 million from GBP1.5 million the year before on revenue that grew by 10% to GBP6.4 million from GBP5.8 million in 2018.
Total gross revenue from its franchise network increased by 4% to GBP48.3 million, as property sales rose by 2% to GBP23.8 million and lettings & management by 6% to GBP24.4 million.
In July, Winkworth acquired 55% of Tooting Estates Ltd for GBP22,500, and for six months has operated the Winkworth franchise in Tooting, south west London.
M Winkworth declared a dividend of 7.80 pence per share, up 4.7% from 7.45p the prior year.
Looking ahead, M Winkworth said the first quarter of 2020 started well, with sales applicants rising by 30% to 40% year-on-year, as well as a positive start in lettings despite reduced supply.
However, the group said it has entered a period of uncertainty characterised by Covid-19, and that it is too early to predict what the full effect will be on activity in the remaining nine months of 2020.
"In 2019, we recorded another good set of results against testing market conditions, and the increase in our dividend reflects this achievement. We are proud of the strength of our brand and the balance in our business between sales and rentals. We are now waiting to see how great an impact the coronavirus crisis will have on the current year's trading and doing all we can to safeguard our franchisees, customers and employees," said Chief Executive Officer Dominic Agace.
Shares in M Winkworth were up 8.4% at 103.00 pence on Monday in London.
By Dayo Laniyan; [email protected]
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