Winkworth has announced pleasing results in it’s Trading Update released ahead of their 2019 full year results on the Winkworth PLC website. Against a difficult political backdrop, these results cement the resilience of the franchise model.
The update reveals that Winkworth’s total revenues were slightly up on their 2018 full year results, and subject to audit, ‘consolidated group turnover and profits before tax are expected to be modestly ahead of market expectations.’
Recognising the challenges facing the sales market over the last few years the franchised network of 100 offices across the UK have concentrated on rental growth, which made up 53% of total revenues in the published H1 2019 interim results. (H1 2018: 49%) The recent Trading Update states that despite the tenant fee ban, revenues have continued to increase in lettings and management across the group.
2019 saw the network continue to drive the business forward and increase market share in sales. Particularly the case in the Capital, Winkworth’s London offices ranked second for properties Sold Subject to Contract with a market share of 4.2%, up from 3.6% in 2018. Remaining in fifth place for New Instructions, Winkworth’s market share was up 6.3% YOY.*
As people remained cautious due to the continued political uncertainty, new franchise openings in 2019 were modest. Nonetheless, the new franchising team at Winkworth opened three new offices in Leigh-on-Sea, Forest Hill and Southwold and sold three offices in Surbiton, Tunbridge Wells and Southbourne to new management. Winkworth offices that were sold in 2018 have seen a significant combined increase in revenue (221%), adding to Winkworth’s bottom line figures.
“We are very pleased with the progress made against a difficult market in 2019 and, once again, to be in a position to raise our dividend payment,” comments Winkworth’s CEO Dominic Agace. “Our professional network and robust model have led to further gains in market share and we look forward to welcoming new operators. At the start of 2020, new applications for both sales and lettings have risen sharply and, with borrowing rates remaining low and a more visible political agenda, we anticipate that these will translate into increased activity in coming months.”
Winkworth ended the year in a strong cash position and as such announced it will pay an increased dividend of 2.1p (2018: 1.9p) per share for the fourth quarter of 2019, bringing total dividend payments declared for the year to 7.8p (2018: 7.45p).
The Company plans to publish its full results for the year ended 31 December 2019 on or around 2 April 2020.