Winkworth profits drop 17% in ‘uneven’ trading conditions

Franchise firm Martin & Co this morning reported record revenue up 48% after its purchase of the Xperience brands.

In its interim results for the half-year period to June 30, the firm said gross profits rose by 53% to £3.2m, up from£2.1m for the same period a year ago.

The firm also said that it had a strong balance sheet, suggesting that further expansion by acquisition is on the cards alongside organic growth.

The firm reported that of 284 trading offices, up from 193 in the first half of last year, 253 offer sales as well as lettings.

There are 239 franchisees in total, with no company-owned offices. Five new offices opened in the first half of this year with a further seven preparing to open.

In total, the Martin & Co franchisees look after 44,000 tenanted managed properties.

Belvoir also reported its interim first-half results this morning. Pre-tax profits were barely changed from last year at £0.6m.

The firm reports a network of 166 outlets, with the roll-out of estate agency services described as on target to achieve 35% of Belvoir outlets by the end of the year.

Meanwhile, Winkworth yesterday announced increased revenue for the first half of this year, but a 17% drop in pre-tax profits.

The AIM-listed firm said revenue in the “uneven” six months to June 30 stood at £2.57m, up from £2.49m for the same period last year.

However, pre-tax profits of £663,149 were down on the £803,785 in the previous year.

The general election and tax threats in the first half of 2015 seriously distorted sales, but boosted rentals.

Chairman Simon Agace said that 2015 is proving to be a year of two halves.

He said the firm aimed to achieve an equal split between sales and rentals, and said there would be a resumption of growth next year.

Winkworth shares went down 4.7% to 147.75p yesterday.

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4 Comments

  1. BD_IndependentAgent

    “Uneven” six months….? Ie Winkworth have lost significant market share! How’s OTM working for you…?

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    1. smile please

      Are you really suggesting Winkworths profits have dropped 17% because they advertise with OTM?!

      Revenue is up, DUH!

      maybe they have invested in their business…..

      Report
    2. HarryN

      Even I was going to hold back on that one BD.

      Not nice to kick an animal when its down 😉

      Report
      1. Paul House

        Didn’t Foxtons also announce in July that revenue and profits were down for the first six months of the year? They are not on OTM I believe.

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