Winkworth predicts ‘wave of sales’ during remainder of year

Winkworth directors believe there is a glut of sales waiting to come through in the next few months.

The company published a trading update admitting that revenues were down 40% in the first half of the year, compared to 2021, but insisting there were good reasons for the slump.

In the update, the firm said the first six months of last year were “exceptionally strong”, as the market bounced back from the Covid pandemic, and buyers rushed to benefit from the stamp duty holiday. Sales were almost 50% higher this year than in 2019 before the pandemic, it added.

The upmarket agency said there was now “a backlog of unfulfilled sales transactions which are being carried over into the second half of the year, and are encouraged by the good levels of both sales applications and valuations”.

“While the UK economic outlook and confidence in the housing market remain in question, the directors are pleased with the Company’s performance in H1 2022, and expect that full year pre-tax profits will be in line with the market forecast of £2.1m, marking a substantial increase on the outcome for 2019,” the directors added.

Increased holding

Earlier this year, Winkworth reported extraordinary results for last year including revenue generated by its franchisee network up by 36% to £68 million.

Its head office in London also saw revenues increase by 47% to £9.45 million and profits up by 110% to £3.21 million, helped by the opening of six new branches, with plans to open eight branches this year.

The controlling family at the helm of Winkworth increased its holding in the company’s total shares earlier this month.

Simon Agace, non-executive chairman, and his son Dominic Agace, CEO, (pictured) run the franchise-based firm as a PLC after it was floated in 2009. Now, Agace family members own nearly 42% of Winkworth after Dominic’s brother and sister, Louis and Gina, increased their holdings with purchases of 900 shares each.