In a set of strong results announced this morning, the Connells Group announced pre-tax profits of £63.2m compared to £50.2m last year.

The result represents a 26% increase in pre-tax profits for the year and a combined 77% increase over the last three years.

The pre-tax profit includes the partial sale of the group’s shareholding in Zoopla Property Group following the successful flotation of Zoopla on the London Stock Exchange in June 2014. This crystallised a £10m profit.

Connells, which lays claim to being the most profitable estate agency group in the UK, said property sales rose by 14% last year with estate agency income up by 16.2%.

It also continued its lettings expansion with 68 new outlets and a number of lettings businesses acquired. There was a 25% rise in the number of tenancies agreed.

The group announced it plans to open another 75 lettings offices this year.

A major feature of 2014 was the purchase of 26-office Peter Alan estate agents in Wales for £16,4m. The purchase took the number of Connells offices to 520.

Connells CEO David Livesey said: “Today’s results see another outstanding year for the Connells Group.

“The housing market, which started off strongly, cooled significantly in the second half. However, due to our diverse offering and robust business model, we were able to get the best out of the market.

“We are reaping the benefits of prolonged investment, particularly in mortgage services, surveying and lettings.

“Demand for rental property has soared, and to take advantage of this we have grown our operations through a combination of organic growth, cold-start openings and acquisitions.

“Our estate agency business recorded high levels of activity and we continue to grow and strengthen this division, evident in the number of new branch openings this year plus the acquisition of Peter Alan.

“Our pre-tax profits are up strongly even after significant investment costs have been absorbed.

“Our strategy has always been to reinvest in the business as part of our ambitious plans for growth, and we are confident that these investments will deliver long-term benefits in terms of future profitability and job creation.”

Connells also reported that its mortgages, conveyancing, land and new homes, and survey and valuations divisions did well.