M Winkworth ends 2022 in line with expectations

Real estate franchisor M Winkworth reported a 2022 financial performance in line with management expectations on Wednesday, although it was below the exceptional levels seen in 2021.

The AIM-traded firm did note that its revenues and pre-tax profits were, however, still significantly higher than in 2019.

Winkworth's franchise office network revenue for the year decreased 3% to £63.1m, with sales revenues accounting for 54% of total revenues, down from 60% in 2021.

Its revenues for the year were in line with 2021, at £9.31m, compared to £9.45m in the prior year.

Meanwhile, Winkworth's profit before tax decreased 23% to £2.47m, compared to £3.21m in 2021.

The company's balance sheet remained clean, with a year-end cash balance of £5.25m, up from £5.02m in 2021, and no debt.

Winkworth opened two new offices in the year, compared to six in 2021.

The board declared ordinary dividends of 11p per share, up from 9.3p in 2021, excluding special dividends.

“After an exceptionally strong performance in sales in 2021, we continued to make good progress across the business in 2022, in lettings and management in particular, and have delivered a set of results which we consider to be very satisfactory against a background that was at times challenging,” said chief executive officer Dominic Agace.

“Many of our key metrics for 2022 are up by some 50% on 2019, the pre-pandemic year.”

Agace said that while the outcome for the current year was “shrouded”, now that mortgage rates had fallen from their peak and were settling at more historic norms of around 4%, the firm saw a “rebased market” emerging.

“Rental prices are showing greater stability and we expect a further healthy contribution from our lettings and management business in 2023.”

At 1259 BST, shares in M Winkworth were up 1.14% at 177p.

Reporting by Josh White for Sharecast.com.