Hunters Property confident despite Brexit wobbles in market

Franchised sales and lettings agency group Hunters Property updated the market on its trading on Wednesday, reporting that it outperformed the market in the year ended 31 December, increasing network income by 1.4% to £39.4m.

The AIM-traded firm said its results for 2018 would be “broadly in line” with expectations, which the board said was “even more encouraging” given the challenging conditions it faced in the UK housing market during the year.

According to the Land Registry, completed transactions fell by 11% year-on-year for the 10 months to October.

During the year, Hunters said its average branch broke through the £0.2m threshold, achieving an average increase of 10%.

New branches joining the network were also, on average, “higher turnover and more substantial” at £0.19m, up from £0.17m.

The company said it completed 13 assisted acquisitions, including four in the second half - a policy which the board said supported its network, that it was “keen” to develop.

Lettings revenue across the network grew by 13% in the year to £13m, which further balanced the business for 2018, at 67% sales and 33% lettings, compared to 70% sales and 30% lettings in 2017.

The board said that, while it expected 2019 to be “no less challenging”, it had added two further branches in January and had signed and scheduled a further four by the end of February, which it said would put the group on track to meet its expectations for the year.

It added that it believed market conditions and government legislation would continue to motivate independent operators to become part of a stronger group that could offer training, marketing, technology and significant cost reductions, particularly in terms of portal charges for Rightmove, Zoopla and OnTheMarket.

Hunters said it was in a “strong” financial position to both expand its network, and reward shareholders by maintaining its progressive dividend policy.

“We are, once again, pleased with our performance and the progress we are making in adding high quality businesses to our network,” said chief executive Glynis Frew.

“We have added 124 branches organically over the last five years and we are optimistic that the success of this strategy leaves us well placed.”

Hunters Property said it expected to announce its full year results on or around 4 April.