Winkworth has reported its full results for last year and, as it warned in January, both revenue and profits were down at the franchised estate agency with ‘challenges remaining’ as Covid continues.
The agency saw two new franchised branches open last year taking its total office count to well over 100.
But despite a larger network, revenue from its network dropped by 1.24% to £47.7 million and revenues slipped by £100,000 to £6.41 million.
But its profits took the most significant hit, dropping by 6.1% to £1.63 million.
City traders have reacted accordingly and Winkworth’s share price has dropped by 6% to £1.52p over the past fortnight in expectation of the results.
Dominic Agace, its CEO (pictured), says: “Our business model was tested by extreme conditions in 2020 and proved to be very robust.
“The benefits of local expertise, highly motivated managers and a state-of-the-art digital platform meant that we were quick to emerge from lockdown and improve our market share.
“While challenges remain, we expect to see an increase in activity in 2021 and we are well positioned to further grow our network and respond to the evolving needs of our customers.”
Winkworth says lettings and management revenues suffered far less in the first lockdown, due to the renewal of contracts and property management services, so trading for the year showed greater consistency.
“Business was driven by a catch-up following the pause rather than an increase in demand and, until international interest recovers, we see reduced rental prices in London limiting growth,” it says.