Connells pins 39% drop in profits on TM Group disposal
Group of estate agencies, which includes the Countrywide stable, says its results are 'robust' after a very unusual year of economic disruption.
Kwasi Kwarteng, Liz Truss, Vladimir Putin and the disposal of its TM Group business in 2021 have been mentioned by Connells as it reports a lacklustre performance for 2021, its latest annual accounts published today reveal.
This means its money from the TM Group has significantly skewed its previous results.
Nevertheless revenue last year was static year-on-year at £1 billion with profits reducing from £111.3 million in 2021 to £67.5 million last year, or just over 39%.
The Group, which in 2021 bought Countrywide making it the UK’s largest estate agency firm by a country mile, reveals that sales exchanges were down 18% in 2022, buyer registrations by 10 and new homes sales income by 9%.
It sold 9,000 new homes, mortgages worth £36 billion and says lettings was its brightest performer, up 4% on a like-for-like basis giving it 150,000 properties under management.
It also handled nearly 700,000 survey and valuations jobs. In 2021 it made an ‘extraordinary’ gain of £27 million following the sale of its TM Group to Dye & Durham, a sale that was later referred to the CMA.
David Livesey (main picture), Connells Group CEO, says: “2022 was an extraordinary year, with a number of unprecedented events impacting the housing market and wider economy – the war in Ukraine, cost of living crisis, political upheaval, disastrous mini budget and upward movement on bank base rates.
“Set against this backdrop, these are a robust set of results.
“The collective effort and perseverance from colleagues across the breadth of our Group ensures our success, and we thank them for their continued contribution to our business.
“Looking forward, we’re optimistic for the year ahead and, with early 2023 showing signs of returning to more ‘normal’ market conditions, we expect to see activity continue at a steady pace.”
