M Winkworth Plc

Trading Update

RNS Number : 1234Y
M Winkworth Plc
12 January 2022
 

12 January 2022

M Winkworth plc

Trading Update and Dividend Announcement

 

M Winkworth plc ("Winkworth" or the "Company"), the leading franchisor of real estate agencies, is pleased to announce the following trading update for the financial year ending 31 December 2021.

Sales activity in Q4 2022 remained brisk, with continued interest in relocation post the heightened level of transactions triggered by the stamp duty holiday, which ended in September. For the year as a whole, our sales agreed were 13% higher than in 2020 and 42% above those of 2019.

Our rental business experienced some normal seasonal slowdown after several months of intense activity but remained strong in London. Prime Central London continues to show signs of recovery, although the outlook for international interest remains dependent on travel restrictions.

Two more offices were opened, bringing the total number of offices opened in 2021 to six. Five of these offices were opened by existing franchisees and we expect our local networks to continue to grow, led by talented, proven and ambitious franchisees whose expansion we are supporting. Following the strength in the market, we also expect to see an increase in approaches for franchises from new applicants.

Since our trading update of 11 November 2021, our business has continued to be strong. Winkworth's full year revenues have again exceeded management expectations and pre-tax profits are expected to be ahead of market forecasts at the time of the last trading update. The Company expects to announce its final results for the year ended 31 December 2021 on or around 12 April 2022.

For the current year, with a good outlook for sales and an improved rental market in London, we look forward to the continued underlying growth of the business.

The directors of Winkworth are pleased to announce that the Company will pay an ordinary dividend of 2.7p (2020: 1.8p) per share for the fourth quarter of 2021, together with a special dividend of 3.8p per share, in recognition of the continued strong performance in the second half of the year.  This brings the total dividend payments declared for the year to 17.0p (2020: 6.68p).

The timetable for the payment of the ordinary and special dividend is as follows:

Ex-Dividend Date * 

20/01/22

 Record Date ** 

21/01/22   

Expected Payment Date 

17/02/22  

 

*  Shares bought on or after the ex-dividend date will not qualify for the dividend

** Shareholders must be on the Winkworth share register on this date to receive this dividend

 

Dominic Agace, Chief Executive Officer of Winkworth, commented:

"We are conscious of the rising interest rate environment, but the cost of finance remains at a record low and we believe that there is still pent up desire from households to relocate. Buyer demand over the end of year break has been reported at record levels and sellers finally seem to be returning to the market. While this may hold back the solid growth in prices of the last two years, it bodes well for the number transactions and we expect another busy year."

For further information please contact:

M Winkworth Plc  Tel : 020 7355 0206

Dominic Agace (Chief Executive Officer)

Andrew Nicol (Chief Financial Officer)

Milbourne (Public Relations)  Tel : 07903 802545

Tim Draper

Shore Capital (NOMAD and Broker)  Tel : 020 7408 4090

Robert Finlay

David Coaten

Henry Willcocks

 

About Winkworth

Winkworth is the leading London franchisor of residential real estate agencies with a pre-eminent position in the mid to upper segments of the sales and lettings markets. The franchise model allows entrepreneurial real estate professionals to provide the highest standards of service under the banner of a long-established brand name and to benefit from the support and promotion that Winkworth offers.

Winkworth is admitted to trading on the AIM Market of the London Stock Exchange.

www.winkworthplc.com

 

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