Winkworth has reported a drop in overall network revenue of 1% as sales fell by 7% in the first half of this year.
Overall revenue was £21.3m, and revenue from sales was £10.8m compared with £11.6m in the same period last year.
Winkworth franchisees mostly offset the sales performance with a 6% rise in revenue from lettings and property management, at £10.3m.
The businesses also raised sales commission rates across the UK, with Winkworth saying that its clients “showed their willingness to pay for trusted expert advice to help them achieve their goals in uncertain markets”.
Winkworth head office increased both its revenues and profits.
Revenues were up 10% to £2.8m, compared with £2.5m in the same period last year.
Pre-tax profits were up 10.4% to £596,000, compared with £540,000.
Winkworth, which now has some 100 franchised offices, also reported that four new outlets opened in the period, and anticipates opening at least four more this year.
The firm said: “We continue to attract talented operators looking to take control of their earnings through active participation in our network, and our new franchising applications have increased by 135% from H1 2017.”
Winkworth declared and paid a 3.7p dividend during the first half of this year.
The City seemed to like the narrative, with the shares rising almost 15% to 125p.
Winkworth was the third franchise property firm within 24 hours to report its results for the six months to the end of June – the others being Belvoir on Tuesday and the Property Franchise Group, like Winkworth, yesterday.
Comments (5)
It’s the best way to compete, make something look too good to be true and you’ll find more vendors sign up for a proper service.
Interestingly all my competitors charge 1% or less and I have increased my fees to double that.
I now work for a smaller group of clients, giving solid professional advice and not running round like a headless chicken.
It works very well and profits have increased. More happy clients too.
I spent years chasing jobs and getting agitated when I lost out to a competitor- now I don’t care. The best people to work for are the ones that respect your professional advice and are willing to pay for it.
Well done Winkers.
It’s all about mind over matter.
If you think you can, then you can!
Well done to you and good luck.
I’ve always said it’s better to have half the stock at twice the fee. Work smarter, not harder! Shame none of my previous bosses listened and just wanted to enter into the race to the bottom on fees instead!
Its the way of many a corporate wannabe!