Winkworth, a prominent franchisor of estate agencies based in London, has released its financial results for the year ending December 31, 2023. In a challenging housing market, the company has reported a dip in both revenue and profits, although its performance met the expectations set by management.

Despite a sluggish sales environment, Winkworth benefited from a stronger performance in lettings, which helped mitigate the impact of decreased sales activity. The company prides itself on the robustness of its platform and the efficacy of its franchisees, claiming to have secured more sales and lettings agreements than any other agent within its operational areas.

Financial Highlights from the Year

Winkworth’s revenue remained relatively stable at £9.27 million, only slightly down from £9.31 million in 2022. However, revenue from its franchised office network experienced a more significant decline, falling by 8% to £57.8 million, compared to £63.1 million the previous year.

The composition of Winkworth’s revenue has shifted, with sales now making up 48% of the total, down from 54% in 2022. This shift indicates a growing reliance on the lettings market.

Profits before taxation saw a noticeable reduction, dropping 15% to £2.15 million from £2.47 million in 2022. Despite this downturn, the company maintains a strong financial position with a clean balance sheet, ending the year with £4.55 million in cash, down from £5.25 million, and carrying no debt.

In a positive note, the dividend payouts increased, with ordinary dividends rising to 11.7p per share from 11.0p per share in 2022. The company also expanded its physical presence by opening four new offices during the year, doubling the number from the previous year.

Strategy and Expectations

Dominic Agace, CEO of Winkworth, remains optimistic about the company’s future. He highlighted ongoing efforts to recruit new talent and open additional franchises, particularly in London, where there is potential to launch or relaunch eight new offices over the next 18 months.

Agace also pointed to strong early results in 2024, with sales agreed by the end of March showing a 23% increase compared to the same period in 2023. These results suggest that Winkworth is poised for growth and is optimistic about overcoming the challenges presented by the current market conditions.

The company’s strategic initiatives focus on revitalizing growth across all areas of the business, aiming to bolster its market position and enhance revenue streams in the coming years.