12th Sep 2018 09:41
LONDON (Alliance News) - Shares in M Winkworth PLC increased on Wednesday as the estate agent franchisor reported revenue and profit growth in the first half of its financial year.
Shares were trading 15% higher at 125.00 pence each on the news.
For the six months to June 30, the company posted pretax profit up to GBP596,000 from GBP540,000 a year prior. This was on the back of a 10% increase in revenue to GBP2.8 million from GBP2.5 million a year ago.
Rental income accounted for 49% of the half-year period's revenue, an increase from 45% a year prior.
The estate agent upped its proposed interim dividend to 3.7 pence per share from 3.6p year-on-year.
"We made solid progress in the first half of 2018, not only with revenue and profit ahead of last year but also with a sharp increase in new franchise applicants," Chief Executive Officer Dominic Agace said.
He added: "We anticipate that the number of new franchised offices and resales to talented operators will continue to grow, building a compounding revenue stream for the group."
The company opened four new offices in the period.
Looking ahead, Winkworth said it remains confident in its model and in the services it provides, and expects full-year results to be in line with the board's views.
The company expects the second half to improve on the first as it completes sales agreed in the Spring and opens new franchises.
Despite expecting sales income to increase, due to the seasonal nature of the business, the company said that "activity is likely to be subdued so long as uncertainty surrounding Brexit remains and the additional stamp duty taxation measures introduced in 2014 continue to impact on prices".
"I would like to borrow a sailing term to describe Winkworth's progress in 2018 - steady as we go, but I believe the wind is behind us," Chairman Simon Agace said.
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