Winkworth sees FY profit slightly ahead of market expectations

In a trading update for the year to the end of December, the company said that growth in its lettings business had helped to offset fewer transactions in the sales market.

The revenue figure is expected to be less than 5% lower than 2016, a year which saw transactions in the first quarter boosted by buy-to-let investors completing purchases before the introduction of a higher rate of stamp duty. Winkworth said its revenues in the second, third and fourth quarters of last year all grew year-on-year and, subject to audit, pre-tax profits are expected to be slightly ahead of market estimates of £1.3m.

During the year, the group opened seven new offices, raising the total number of franchised outlets at year end to 99 from 94 in 2016. An additional three offices will open in the first quarter of this year and Winkworth expects further opportunities to convert existing businesses to its brand and to grow new franchises.

Chief executive Dominic Agace said: "At the national level, transactions were below average in 2017, although over the course of the year we experienced an improvement in activity in prime central London. Our lettings business is going from strength to strength and we are pleased to have proven the resilience of the brand under testing market conditions.

"While the outlook for the market in 2018 remains uncertain, we start the year with an increased number of offices and a pipeline of high quality applicants."

At 0945 GMT, the shares were up 8% to 114.50p.