Healthy market sees revenue, profit growth for Winkworth

Estate agent franchise group M Winkworth reported a 36% improvement in franchised office network revenue in its final results on Tuesday, to £64.8m.

The AIM-traded firm said its own total revenues were 47% higher year-on-year for the 12 months ended 31 December, to £9.45m.

Its profit before tax grew 110% to £3.21m, while its year-end cash balance was £5.02m, compared to £4.66m a year earlier.

Sales income made up 60% of total revenues, compared to 50% in 2020, while operationally, Winkworth said six new franchises were opened in the year, and two were resold.

The board declared ordinary dividends of 9.3p per share, up from 6.68p year-on-year, and special dividends of 7.7p per share, compared to nil in the prior year.

“We made excellent progress in 2021, with a good performance in rentals and sales income exceeding all company records,” said chief executive officer Dominic Agace.

“We welcomed six new franchises to the group, while our two newly owned offices produced strong results.”

Agace said the company was “mindful” of the impact that the “tragic situation” in Ukraine could have on UK inflation, interest rates and consumer confidence, but said the firm had seen “ongoing strong demand” in the first quarter, with “encouraging numbers” of applications for both sales and lettings.

“With new areas of regional expansion, our backing of ambitious operators building local businesses, and growth in our core business, where our long-established offices are benefiting from a revival in activity in their prime markets, we see opportunities to grow our business above market trend whilst both paying a progressive dividend and maintaining a healthy cash balance.”

At 1025 BST, shares in M Winkworth were up 2.78% at 185p.