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Agencies & People

Connells profits drop by 12% after a year of Brexit chaos

Connells says it endured a tough 2019 but claims a 'robust performance' including its market share of sales maintained at 5.5% despite a lower number of transactions.

Nigel Lewis

Connells has reported its full year results for 2019 during which pre-tax profits dropped by 12% to £50.1 million after sales decreased by 7% and overall revenue slipped by 1%.

Connells Group CEO David Livesey claims its performance is strong given the difficult year the property sales and lettings industry has endured.

He also says the company has been investing in tech to help it overcome the lost revenue from its lettings business following the tenant fees bans in England and Wales last year.

It has form in proptech It has previously invested in Fixflo and is one of the agencies involved in Reapit’s Foundations proptech ‘app store’ set to fully launch later this year. But two years ago it closed down online agency Hatched, which it bought in 2015.

Despite a slower market, Connells has maintained its share of listings as counted by Rightmove, which remains at 5.5% ahead of Countrywide and Purplebricks, although these two rivals usually claim to be larger by SSTC.

“Connells Group has delivered a strong full-year performance that reflects the robustness and benefits of our diversified business model,” says Livesey.

“Continued political and Brexit uncertainty inevitably impacted consumer sentiment and the number of housing transactions fell again, but our teams maintained their relentless focus on delivering great customer service and outcomes and we are proud of the progress we’ve made.”

These latest results are for the group, which owns businesses or has investments in companies in every area the property industry.

This includes its 600 branch network and high-profile brands including Connells, Sequence, Barnard Marcus, William H Brown and Gascoigne Halman.

Read more about Connells.

 

February 27, 2020

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