Profits drop at big regional agency – but it keeps up its payments for staff

Large regional agent Arun Estates has recorded a drop in profits of well over £1.5m.

Nevertheless, it still made profits of more than £12m – and seems to have made sure its staff are still rewarded, despite their drops in sales commissions.

In newly reported accounts registered at Companies House, the firm says that it made a pre-tax profit of £12,235,000 in the year to September 30.

This was down from £13,803,000 in the previous year.

The group, active in the south-east, calls it a satisfactory result given the market conditions, where it says that in its regions some of the largest reductions in transaction volumes occurred.

The results also say that it has not cut back on staff pay.

It says there has been continued investment of £36,360,000 in staff remuneration, little altered from £36,368,000 in 2017, as it looked to reward and retain employees “despite the market limiting their commission earning potential”.

The firm says in its results that the directors “are of the firm opinion that the group will produce a satisfactory result in the year to 30 September 2019”.

The results say that the decrease in estate agency turnover was partially offset by growth in financial services and lettings.

However, the firm does warn that the principal risk to its business is the health of the UK residential property market, with confidence affected by events including Brexit.

Post-tax profits for the year to the end of last September were £9,846,000, compared with previous profits of £11,459,000.

It said that transactions with owners were 54,568, down from 57,169.

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7 Comments

  1. ArthurHouse02

    Here you go CyberDuck you were looking for a report on how a large high street estate agent is doing!

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  2. J1

    There will be some geeen eyed readers of this article this morning.

    Good results in the present climate.

     

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  3. downdoobydodowndowndubaduba

    Good to hear a bit of good news

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  4. Leespoon

    An impressive result from a very talented team

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  5. Property Pundit

    But, but, but online is the future, it’s changing the face of the industry don’t you know. Yeah, right, suck on these figures you charlatans.

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  6. Woodentop

    Keep up the good work Paul & Co.

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  7. Typhoon

    “Profits drop at big regional agency – but it keeps up its pay,ends to staff”

    Rosalind, Rosalind,Rosalind, here was one of the very few opportunities to have reported something super positive. Why could your headline not have been something “Genius Paul delivers startling result”?

    Let’s get real here, profits from 2 years ago are dinosaur statistics. For Arun to produce the result they have produced this last year against the backdrop of current market conditions, is nothing short of genius.

    And I hope the lunatic investors in “On line” read these results and wake up – not to smell the coffee- but to smell the danger their investments are in.

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