Franchising business Hunters has said it outperformed the market last year, with its network income rising 1.4% to £39.4m.

During the year its average branch broke through the £200,000 threshold, achieving £200,016 (2017: £182,000) – an average increase of 10%.

New branches joining the network were on average achieving higher revenues than previously at £186,000 compared with £173,000 in 2017.

Last year, Hunters franchisees completed 13 assisted acquisitions of lettings books.

The network’s lettings revenue grew by 13% in the year to £13m (2017: £11.5m) further balancing the business for 2018 as 67% sales and 33% lettings (2017: sales 70%, lettings 30%).

Hunters said it has made a strong start to 2019 with two new openings and a further four planned for this month.

However, the firm does expect this year to be challenging.

It told the City in a trading update: “We believe market conditions and government legislation will continue to motivate proven independent operators to become part of a stronger group that can offer training, marketing, technology and significant cost reductions, particularly in terms of portal charges for Rightmove, Zoopla and OnTheMarket.

“We are in a strong financial position to both expand our network and reward shareholders by maintaining the company’s progressive dividend policy.”

Chief executive Glynis Frew said: “We are, once again, pleased with our performance and the progress we are making in adding high-quality businesses to our network.

“We have added 124 branches organically over the last five years and we are optimistic that the success of this strategy leaves us well placed.”