Last week Winkworth announced robust interim results for the six months ended 30 June 2018 with revenues and profit before taxation up, and four new offices opened.
With a continued tumultuous sales market due to stamp duty changes, a snap election, and economic uncertainty surrounding Brexit, Winkworth has continued to focus on building lettings and management to a 50/50 split – now accounting for 49% of the business. (H1 2014: 33%).
Dominic Agace, CEO comments “The local knowledge and experience of our franchisees has enabled them to adapt quickly to testing times and, as a result, we are pleased to see our metrics outperform peers of a similar geography.”
The first half of 2018 saw gross revenues of the franchised office network very slightly down by 1% compared to the first six months of 2017. Sales were down 7%, counterbalanced by the lettings which were up 3% and property management which was also up 13% compared to the same time last year.
Winkworth’s revenues rose by 10.2% and profit before taxation increased 10.4% YOY. Cash balance as at 30 June was also up and the company remains debt free.
“Winkworth is a steady and reliable competitor. We have reserved enough capital to take advantage of market opportunities, and with seven new franchises welcomed to the network in 2017, with potentially more in 2018, there is visibility on future growth,” comments Simon Agace, Winkworth Chairman.
Winkworth has opened four new offices compared to three this time last year and new franchising applicants have increased by 135% from H1 2017 to H1 2018. There is a strong pipeline for further office openings in the latter part of 2018 and momentum growing for new offices in the first half of 2019.
“We anticipate that the number of new franchised offices and resales to new, talented operators will continue to grow, building a compounding revenue stream for the group. Combined with an increasing number of quality applicants looking to join Winkworth and the company’s strong financial position, the outlook remains positive,” ends Dominic.
For further details and full results please see the Annual Reports and Results page of Winkworth’s parent company; M Winkworth PLC.