Pain in the property market is beginning to feed into estate agency business performance as franchise-based firm Winkworth reports sales being delayed into the second half of the year.

Its latest financial update for investors reveals overall ‘network’ revenue down by 5% to £26.4 million, sales down by 18% to £12.3 million but lettings revenue up by 10% to £14 million as the white-hot rental market continues.

“These [first half] results reflect a slower sales market but ongoing strength in lettings,” says Dominic Agace, Chief Executive Officer of the Company.

“Our business remains robust and our focus continues to be on providing a platform that can allow an independent business to compete as a top three contender in its local marketplace and, by doing so, ensuring a franchisee can generate a healthy return under differing market conditions.”

Highlights

Other highlights from its trading update include that property sales now account for just under half of its HQ turnover and that profit before taxation was down by 24% to £810,000 although the business has over £4 million at the bank to weather any coming storms.

Winkworth also opened two new franchised offices during the period, taking the company near to 100 branches nationally.

What the results don’t mention is that its franchise agreement with Nick Goble covering  the Pimlico, Battersea and Clapham areas in London, was recently terminated following a legal process,  as The Neg reported last month.