Winkworth is the latest company to report on its financial performance for 2021 and has robustly bounced back from 2020s difficulties.

The franchised network revenues grew 36%, from £47.7m to £64.8m, while head office revenue stood at £9.45m compared to £6.41m in 2020.

Profits before taxation soared 110% higher, from £1.53m in 2020 to £3.21m in 2021.

Of course, 2020 was the depth of the Covid pandemic with massive disruption in the property market and the wider economy.

So a look at the company’s 2019 figures, when times were ‘normal’, adds some context.

In that year the franchised office network generated revenues of £48.3m; head office revenue was £6.42m and profit before tax was £1.63m

2021 was therefore a genuinely impressive performance.

CEO, Simon Agace said:

“Over the course of the year, following the successful vaccine roll-out, we saw the move out of cities to the country start to reverse, with lettings demand leading the way. A return to work in London, alongside ongoing demand for houses and flats with outdoor space, saw a significant rise in interest there as the year progressed.

“Despite travel difficulties in central London, there were also early signs of prices moving up. Winkworth’s 2021 London sales income rose by 60% over 2020 and country income by 76%.

“Our rental business also performed well over the year, with initial strength in activity and price growth in country markets and an upturn in London in the second half of the year following the return of young professionals, some international travel and international students.

“Rental income in the country increased by 10% on 2020, outer London by 8% and, with a strong finish to the year, central London by 4%. After several years of landlords selling down their property portfolios and many tenants choosing to renew agreements, a shortage of supply in the country market and in certain country towns and cities led to price increases of up to 20%. In London we saw rental prices move ahead of pre-pandemic levels towards the end of the year.

“In 2021, gross revenues of the franchised network of £64.8m were significantly up both year-on-year and when compared to 2019 (2020: £47.7m; 2019: £48.3m). Sales income was up by 64% at £39.0m (2020: £23.8m; 2019: £23.8m) while Lettings and Management increased by 8% to £25.8m (2020: £23.9m; 2019: £24.4m), producing a 60:40 revenue split between these two activities compared to a 50:50 ratio in 2020.

“Winkworth’s revenues rose by 47% to £9.45m (2020: £6.41m) and profit before taxation was 110% higher at £3.21m (2020: £1.53m).

“The Group’s cash position at year end increased to £5.02m (2020: £4.66m).

“Dividends of 9.3p per ordinary share were declared for the year (2020: 6.68p per ordinary share) as well as special dividends of 7.7p per ordinary share.”

Chairman, Simon Agace said in his statement:

“I am pleased to report that 2021 saw a solid revival in the sales market and a recovery in prices outside of central London, where Winkworth’s exposure enabled the company to benefit significantly from the upturn. Our sales income, which accounted for 60% of last year’s revenues, broke all company records.

“After a strong first half of 2021, the rental market has since suffered from reduced availability of property to let, in part due to landlords selling down properties which have become less profitable due to increased regulatory and management costs, and also as a result of many tenants renewing lease agreements. Our locally-based teams remain well placed to maintain the quality of their management and lettings activity and to control costs.

“From my inception of Winkworth’s franchise system in 1981, I have always backed teams of experienced estate agents to grow their operations. The current management team has steadily and carefully continued this strategy to even greater effect.

“We are a debt-free business and have advanced plans for investing in new franchises, while at all times maintaining a prudent level of cash reserves.