Winkworth has reported a surprise drop in half-year profits, which have fallen from £1.02 million in the same period last year to £0.83 million and that’s despite a 27% increase in network sales revenues.

The 19% fall contrasts sharply with the company’s July trading update, when Chief Executive Dominic Agace (pictured) predicted full-year profits would reach £2.6 million – a target that now looks challenging.

one-off costs

Winkworth says the profit fall largely reflects one-off costs, including office relocation and a planned increase in marketing spend in Prime Central London, along with consultancy work on systems development.

The company, however, reported strong revenue growth across its network of 90 offices, which rose by 15% to £32.0 million, up from £27.9 million in H1 2024.

And network sales revenues jumped 27% to £16.9 million, significantly outperforming the modest 4% growth in lettings revenues to £15.1 million. Sales now account for 53% of total network revenues, up from 48% in H1 2024.

The company reports its outer London offices were prime beneficiaries of falling interest rates, leading the way with comparable revenue growth of 33%, while central London offices showed growth of 25%.

We are delighted with our performance in sales in H1 2025 and the solid contribution from lettings, where management fees are making an increasingly important contribution.”

Agace says: “We are delighted with our performance in sales in H1 2025 and the solid contribution from lettings, where management fees are making an increasingly important contribution.”

In lettings, there is a more nuanced picture than in July’s trading update. While total lettings revenue increased by 4%, this masks a 4% decline in pure lettings income offset by a 10% rise in management fees, which now represent 25% of network turnover.

Winkworth attributes this shift to landlords exiting the sector and the remaining landlords requiring greater support to manage changing legislation and increased regulation under the incoming Renters’ Rights Bill.

Agace says: “These numbers reflect our network adjusting to a tightening of supply of rental stock as landlords exit the sector and our franchisees provide an increased level of service to those remaining.”

You can read the full report here.