REG - M Winkworth Plc - Half-year Report

M WinkworthAnnouncement

08/09/2021 07:05

RNS Number : 0333L
  
M Winkworth Plc
  
08 September 2021
  
 

M Winkworth Plc
 
Interim Results for the six months ended 30 June 2021
 
M Winkworth Plc ("Winkworth" or the "Company") is pleased to announce its unaudited Interim Results for the six months ended 30 June 2021
 
Highlights for the period
·    Network revenues up by 92% to £36.4 million (H1 2020: £18.9 million)
-     Network sales revenues up by 195% to £24.6 million (H1 2020: £8.3 million)
-     Network lettings revenues up by 11% to £11.8 million (H1 2020: £10.6 million)
·    Network sales revenues accounted for 68% of total network revenues (H1 2020: 45%)
·    Winkworth revenues up by 107% to £5.25 million (H1 2020: £2.54 million)
·    Majority-owned offices generated revenues of £1.04 million (H1 2020: £0.35 million)
·    Profit before taxation up by 330% to £1.98 million (H1 2020: £0.46 million)
·    Cash balance at 30 June 2021 of £4.57 million (30 June 2020: £3.27 million)
·    Three new franchised offices opened
·    Dividends of 8.30p declared during the period (H1 2020: 3.08p)
 
Dominic Agace, Chief Executive Officer of the Company, commented:
 
"While the first half of this year was marked by an exceptional level of sales activity, it also vindicated our strategic expansion in recent years into the country, enabling us to service clients not only in the buoyant London market, but also Londoners and country dwellers seeking more space or a change in environment. Our rental business remained strong, albeit on this occasion it was outshone by sales, and we are again encouraged by the number of applications from talented operators looking to work within our successful and well-balanced franchise model."
 
 
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
 
Chairman's Statement



I would like to congratulate management, staff and franchisees on these exceptionally strong first half figures. The upturn in sales, which was the main driver of this performance, started at the end of 2020 and carried through into 2021, leading to a much increased workload for everyone. All this took place despite Covid uncertainty and I would also like to thank and congratulate the lawyers, mortgage brokers, surveyors and bankers for meeting stamp duty deadlines, and our clients for their patience and, in some cases, perseverance. This was a difficult time for all, but the outcome proved that it was worthwhile. 
 
Housing market transactions have been depressed since 2015, leading to the dominance of rental and management turnover over the last five years. Since the autumn of 2020, however, there has been a significant catch up in completed sales and our franchisees have handled the dramatic increase in sales volumes with well-proven professionalism.
 
Our rental and management revenue were up and slightly ahead of H1 2019, but still subdued in central London which has suffered from a lack of overseas tenants, students and visiting professionals. There are now signs that the rental market is recovering, with best-in-class properties letting quickly. Subject to the continued unwinding of Covid stipulations, we therefore expect that the rentals market will show some recovery in the second half.
 
Meanwhile, as the rentals market becomes ever more subject to regulation, rebalancing the rights of landlords and tenants, we believe that landlords will increasingly seek a greater degree of protection by using qualified estate agents to access personalised expert advice and guidance at all stages of the tenancy. Much of this work needs hands on professional guidance rather than standardised digital solutions. 
 
Winkworth's strength lies in its flexibility in handling both sales and rentals, and in having long-established, locally based franchisees. We are seeing a growing number of highly qualified, dynamic new franchisees joining us to take advantage of the opportunities presented by a revived market, and we wish them every success. It is very exciting to see a new office in Hellesdon, a Tiverton office added to the Exeter/Devon business, and Ferndown added to our dynamic Bournemouth group. 
 
From my experience of over 40 years in this business, Winkworth is in a very strong position.
 
Simon Agace
Non-Executive Chairman
7 September 2021
 
 
 
CEO's Statement
 
The sales market in the first half of 2021 was extraordinarily active. This resulted from a number of factors, namely pandemic-induced buyers searching for space and bringing forward moves to the country that may normally have been five years away, record low interest rates, and the government being overtly supportive of the housing market, in particular after the release from lockdown. These factors led to record months of sales completions in March 2021, prior to the extension of the stamp duty holiday, and in June 2021, with our H1 sales revenue outstripping the whole of 2020.
 
Peak activity was focused on the country markets, where the desire to move away from city centres played its biggest part. It was interesting to note that, outside of the internationally reliant central London market, London also performed very strongly, with a move to more space and the easing of political uncertainty proving to be driving factors.
 
Perhaps the greatest division was between houses and flats, with house prices increasing and flats proving more difficult to sell following the withdrawal of the support of many buy-to-let investors. Despite the stamp duty holiday and government initiatives to support 95% LTV mortgages, this sector saw limited price increases.
 
Similarly, the rental market was divided between house and flat demand, with houses and country locations leading the way, while London rentals suffered from an absence of international workers, students, and young professional sharers. Demand recovered as H1 progressed and people started to prepare for the return to work.  While rents in the country markets grew significantly, those in London remained behind pre-pandemic levels, albeit with early signs of a recovery towards the end of H1.
 
In H1 2021, gross revenues of the franchised office network of £36.4m were up by 92% (H1 2020: 18.9m).  Sales income rose by 195% to £24.6m (H1 2020: £8.3m). Lettings and management rose by 11% to £11.8m (H1 2020: £10.6m), equating to a 32% lettings and management / 68% sales income split across the business at the half year (H1 2020: 55% lettings and management / 45% sales).
 
The first half gross revenues of £36.4m were also markedly higher than the H1 2019 result of £21.4m, with sales up by 146% and lettings and management up by 4% on the comparative period.
 
Winkworth's revenues rose by 107% to £5.25m (H1 2020: £2.54m) and profit before taxation by 330% to £1.98m (H1 2020: £0.46m). The Group's cash stood at £4.57m (H1 2020: £3.27m) and ordinary dividends of 4.4p were declared for the first half of the year (H1 2020: 3.08p). as well as special dividends of 3.9p.
 
Our Tooting business, where we now own 90% of the equity, performed well and progress was also made at our Crystal Palace office. We continue to expand the network, and it is interesting to note that the three new office openings, Hellesdon, Ferndown and Tiverton, were all additions made by existing franchisees looking to grow their businesses. We continue to see an uplift in new franchise applications and hope to open a total of eight new franchises for the year as a whole.
 
We have also backed the start-up of a commercial agency, advising on investment in retail or business premises for development or conversion into residential accommodation. The early results from this venture are very encouraging.
 
 
Outlook

 
The ending of the stamp duty holiday, the re-opening of foreign travel in August, and transactions due to complete in July having been brought forward to June will, inevitably, mean that some of the fervour will come out of the sales market.  But with the ending of stamp duty relief being both phased and extended, it would appear that a cliff edge moment has been avoided. Our sales applicants continue to track well ahead of 2019 levels, with plenty of activity remaining as years of repressed underlying demand are supported by mortgage rates as low as 1%. 
 
We see a slight reversal of the move to the country, as the great debate on working from home plays out and workers once again return to city centres to be nearer their offices.  With activity and prices in the country markets having been depressed in recent years, however, we see plenty of opportunity in a vibrant country market going forwards, while London should continue to trade well as young city professionals move back to build their careers.  As international travel returns, we also expect to see a steady acceleration of interest in central London sales, with foreign buyers joining domestic ones to compete for properties.  
 
We have seen a significant upturn in activity in the rental market as the return to work brings tenants back to London and houses in outer London recover to their pre-pandemic rents. We expect central London flats rents to follow suit over the coming year as international clients, students and young professionals return.
 
Since 2008, our long-term thinking as an organisation has been to build our network into the country markets most affected by the financial crisis and to refine our London network to take advantage of increased activity, thus strengthening the core proposition of our brand and generating the greatest benefit from our influential London network. While we remain open to exploring small acquisitions at the right price, our focus remains firmly on expanding the network selectively.   
 
 
Dominic Agace
Chief Executive Officer
7 September 2021
 
 
 
About Winkworth
 
Established in Mayfair in 1835, Winkworth is a leading 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 well-respected 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.
 
For further information please visit: www.winkworthplc.com
M WINKWORTH PLC 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period 1 January 2021 to 30 June 2021




 


 


 


 


 


 


(Unaudited)


 


(Unaudited)


 


 




 


 


 


 


 


 


Period


 


Period


 


 




 


 


 


 


 


 


1.1.21


 


1.1.20


 


(Audited)




 


 


 


 


 


 


To


 


To


 


Year ended




 


 


 


 


 


 


30.6.21


 


30.6.20


 


31.12.20




 


 


 


 


 


 


£000's


 


£000's


 


£000's




 


 


 


 


 


 


 


 


 


 


 




CONTINUING OPERATIONS


 


 


 


 


 


 


 


 


 


 




Revenue


 


2


 


 


 


5,247


 


2,544


 


6,406




 


 


 


 


 


 


 


 


 


 


 




Cost of sales


 


 


 


 


 


(696)


 


(517)


 


(1,137)




 


 


 


 


 


 


 


 


 


 


 




GROSS PROFIT


 


 


 


 


 


4,551


 


2,027


 


5,269




 


 


 


 


 


 


 


 


 


 


 




Other operating income


 


 


 


 


 


-


 


98


 


48




Administrative expenses


 


 


 


 


 


(2,560)


 


(1,673)


 


(3,921)




Negative goodwill


 


 


 


 


 


 


 


-


 


119




 


 


 


 


 


 


 


 


 


 


 




OPERATING PROFIT 


 


 


 


 


 


1,991


 


452


 


1,515




 


 


 


 


 


 


 


 


 


 


 




Finance costs


 


 


 


 


 


(19)


 


(13)


 


(22)




Finance income


 


 


 


 


 


7


 


22


 


39




 


 


 


 


 


 


 




PROFIT BEFORE TAXATION


 


 


 


 


 


1,979


 


461


 


1,532




 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 




Taxation


 


 


 


 


 


(408)


 


(87)


 


(295)




 


 


 


 


 


 


 


 


 


 


 




PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD


 


 


 


 


 


1,571


 


374


 


1,237




 
Profit and total comprehensive income attributable to:
Owners of the parent


 


 


 


 


 


1,491


 


365


 


1,169




Non-controlling interests


 


 


 


 


 


80


 


9


 


68




 


 


 


 


 


 


 


 


 




TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT


 


 


 


 


 


 
1,571


 


 
374


 


 
1,237




 


 


 


 


 


 


 


 


 




Earnings per share expressed


 


 


 


 


 


 


 


 


 


 




in pence per share:


 


3


 


 


 


 


 


 


 


 




Basic


 


 


 


 


 


11.71


 


2.87


 


9.18




Diluted


 


 


 


 


 


11.57


 


2.86


 


9.14




 


 


 


 


 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 



 
                 M WINKWORTH PLC 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 2021




 


(Unaudited)


 


(Unaudited)


 


(Audited)




 


30.06.2021


 


30.06.2020


 


31.12.2020




 


 


 


 


 


 




 


 


Notes


£000's


 


£000's


 


£000's




ASSETS


 


 


 


 


 




NON-CURRENT ASSETS


 


 


 


 


 




Intangible assets


4


 


799


 


722


 


850




Property, plant and equipment


1,076


 


434


 


827




Prepaid assisted acquisitions support


313


 


463


 


338




Investments


56


 


49


 


71




Trade and other receivables


393


 


423


 


307




 


 


 


 


 


 




 


2,637


 


2,091


 


2,393




 


 


 


 


 


 




CURRENT ASSETS


 


 


 


 


 




Trade and other receivables


1,952


 


1,460


 


911




Cash and cash equivalents


4,568


 


3,266


 


          4,661




 


 


 


 


 


 




 


6,520


 


4,726


 


5,572




TOTAL ASSETS


9,157


 


6,817


 


7,965




 


 


 


 


 


 




EQUITY


 


 


 


 


 




SHAREHOLDERS' EQUITY


 


 


 


 


 




Share capital


 


 


64


 


64


 


64




Share option reserve


51


 


51


 


51




Retained earnings


5,909


 


4,751


 


5,147




 


 
6,024


 


 
4,866


 


5,262




 
Non-controlling interests


 
163


 


 
106


 


 
165




TOTAL EQUITY


6,187


 


4,972


 


5,427




 


 


 


 


 


 




LIABILITIES


 


 


 


 


 




NON-CURRENT LIABILITIES


 


 


 


 


 




Trade and other payables


762


 


259


 


512




Deferred tax


92


 


58


 


90




 


854


 


317


 


602




CURRENT LIABILITIES


 


 


 


 


 




Trade and other payables


1,648


 


1,301


 


1,756




Tax payable 


468


 


227


 


180




 


 


 


 


 


 




 


2,116


 


1,528


 


1,936




 


 


 


 


 


 




TOTAL LIABILITIES


2,970


 


1,845


 


2,538




TOTAL EQUITY AND LIABILITIES


9,157


 


6,817


 


7,965



 
 
 
 
 
 
 
 
 
 
 
 



M WINKWORTH PLC 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period 1 January 2021 to 30 June 2021
 




 


 
Share


 


 
Retained


 


 
Share option


 


Non controlling


 


 
Shareholders'




 


capital


 


earnings


 


reserve


 


interest


 


equity




 


£000's


 


£000's


 


£000's


 


£000's


 


£000's




Balance at 1 January 2020


64


 


4,867


 


51


 


97


 


5,079




 


 


 


 


 


 


 


 


 


 




Total comprehensive income


-


 


365


 


-


 


9


 


374




Dividends paid


-


 


(481)


 


-


 


-


 


(481)




 


 


 


 


 


 


 


 


 


 




Balance at 30 June 2020


64


 


4,751


 


51


 


106


 


4,972




 


 


 


 


 


 


 


 


 


 




Acquired with subsidiary


-


 


 


 


-


 


-


 


-




Profit and  comprehensive income


-


 


804


 


-


 


59


 


863




Dividends paid


-


 


(408)


 


-


 


-


 


(408)




 


 


 


 


 


 


 


 


 


 




Balance at 31 December 2020


64


 


5,147


 


51


 


165


 


5,427




 


 


 


 


 


 


 


 


 


 




Total comprehensive income


-


 


1,491


 


-


 


80


 


1,571




NCI on acquisition of shares


-


 


(55)


 


-


 


(82)


 


(137)




Dividends paid


-


 


(674)


 


-


 


-


 


(674)




 


 


 


 


 


 


 


 


 


 




Balance at 30 June 2021


64


 


5,909


 


51


 


163


 


6,187



 
 
 
 
 
 
 
 
 
 



 
M WINKWORTH PLC 
 
CONSOLIDATED STATEMENT OF CASH FLOWS
for the period 1 January 2021 to 30 June 2021
 




 


 


 


(Unaudited)


 


(Unaudited)


 


 




 


 


 


Period


 


Period


 


 




 


 


 


1.1.21


 


1.1.20


 


(Audited)




 


 


 


To


 


To


 


Year ended




 


 


 


30.6.21


 


30.6.20


 


31.12.20




 


Notes


 


£000's


 


£000's


 


£000's




Cash flows from operating activities


 


 


 


 


 


 


 




Cash generated from operations


i


 


1,010


 


491


 


2,762




Tax paid


 


 


(120)


 


(60)


 


(313)




 


 


 


 


 


 


 


 




Net cash from operating activities


 


 


890


 


431


 


2,449




 


 


 


 


 


 


 


 




Cash flows from investing activities


 


 


 


 


 


 


 




Purchase of intangible fixed assets


 


 


-


 


(105)


 


(142)




Purchase of tangible fixed assets


 


 


(28)


 


(7)


 


(82)




Assisted acquisition support


 


 


(35)


 


-


 


(17)




Cash acquired on acquisition


 


 


-


 


-


 


-




Cash paid to acquire subsidiary


 


 


-


 


-


 


-




Interest received


 


 


7


 


22


 


39




 


 


 


 


 


 


 


 




Net cash used in investing activities


 


 


(56)


 


(90)


 


(202)




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




Cash flows from financing activities


 


 


 


 


 


 


 




Payment of lease liabilities


 


 


(97)


 


(152)


 


(246)




Interest paid on lease liabilities


 


 


(19)


 


(13)


 


(22)




Equity dividends paid


 


 


(674)


 


(481)


 


(889)




Non controlling interest


 


 


(137)


 


 


 


 




 


 


 


 


 


 


 


 




Net cash used in financing activities


 


 


(927)


 


(646)


 


(1,157)




 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 




 
Increase/(decrease) in cash and cash equivalents 


 


 


(93)


 


(305)


 


1,090




Cash and cash equivalents at beginning of period 


 


 


4,661


 


3,571


 


3,571




 


 


 


 


 


 


 


 




Cash and cash equivalents at end of period 


ii


 


4,568


 


3,266


 


4,661




 
M WINKWORTH PLC 
 
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
for the period 1 January 2021 to 30 June 2021
 




i.


RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS 




 




 


(Unaudited)


 


(Unaudited)


 


 




 


Period


 


Period


 


 




 


1.1.21


 


1.1.20


 


(Audited)




 


To


 


To


 


Year ended




 


30.6.21


 


30.6.20


 


31.12.20




 


£000's


 


£000's


 


£000's




Profit before taxation


1,979


 


461


 


1,532




Depreciation and amortisation


255
 


 


 
306


 


555




(Reversal of) Impairment of fixed asset investments


15


 


(4)


 


-




Impairment of intangible


-


 


-


 


66




Negative goodwill


-


 


-


 


(119)




FV uplift on investment


-


 


-


 


(28)




Finance costs


19


 


13


 


22




Finance income


(7)


 


(22)


 


(39)




Loss on disposal of fixed asset


1


 


-


 


-




 


 


 


 


 


 




 


2,262


 


754


 


1,989




 
(Increase) in trade and other receivables


(1,125)


 


(1,660)


 


67




Increase/(decrease) in trade and other payables 


(127)


 


1,397


 


706




 


 


 


 


 


 




 


 


 


 


 


 




 


 


 


 


 


 




Cash generated from operations 


1,010


 


491


 


2,762




 
ii.           CASH AND CASH EQUIVALENTS
 
The amounts disclosed in the cash flow statement in respect of cash and cash equivalents are in respect of these balance sheet amounts: 
 




 


30.6.21


 


30.6.20


 


31.12.20




 


£000's


 


£000's


 


£000's




Cash and cash equivalents


4,568


 


3,266


 


4,661




 


 


 


 


 


 




                                                                                                                                                                 
M WINKWORTH PLC 
 
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2021 to 30 June 2021
 
1.           ACCOUNTING POLICIES
                               
              Basis of preparation
The interim report for the six months ended 30 June 2021 and the comparative information for the periods ended 30 June 2020 and 31 December 2020 do not constitute statutory accounts as defined in section 434 of the Companies Act 2006.  A copy of the most recent statutory accounts for the year ended 31 December 2020 has been delivered to the Registrar of Companies.  The auditor's report on these accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.
 
The financial information for the six months ended 30 June 2021 and 30 June 2020 is unaudited. The financial information for the year ended 31 December 2020 is derived from the group's audited annual report and accounts.
 
The annual financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting'.
 
The accounting policies and methods of computation used in this financial information is consistent with those applied in the group's latest annual audited financial statements, except as noted below.
 
Taxation
Income tax expense has been recognised based on the best estimate of the weighted average annual effective income tax rate expected for the full financial year.
 
Deferred tax is recognised in respect of all material temporary differences that have originated but not reversed at the balance sheet date.
 
 
 
M WINKWORTH PLC
 
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2021 to 30 June 2021
 
2.          SEGMENTAL REPORTING
 
The board of directors, as the chief operating decision making body, review financial information and make decisions about the group's business and have identified a single operating segment, that of estate agency and related services and the franchising thereof.
 
The directors believe that there are two material revenue streams relevant to estate agency franchising.
 




 


6 months 2021
£000


 


6 months 2020
£000


 


12 months 2020
£000




Revenue


 


 


 


 


 




Corporate owned offices


1,038


 


352


 


1,083




Management service fees


4,209


 


2,192


 


5,323




 


 
5,247


 


 
2,544


 


 
6,406




 
All revenue is earned in the UK and no customer represents more than 10% of total revenue in either of the years reported.
 
M WINKWORTH PLC 
 
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2021 to 30 June 2021
 
3.          EARNINGS PER SHARE
 
Basic and diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period.
 




 


 


 


Weighted


 


 




 


 


 


average


 


 




 


 


 


number


 


Per-share




 


Earnings


 


of shares


 


amount




 


£000's


 


000's


 


pence




 


 


 


 


 


 




Period ended 30.06.21


 


 


 


 


 




Basic EPS


 


 


 


 


 




Earnings/number of shares


1,491


 


12,733


 


11.71




Effect of dilutive securities


-


 


149


 


(0.14)




 


 


 


 


 


 




Diluted EPS


 


 


 


 


 




Adjusted earnings/number of shares


1,491


 


12,882


 


11.57




 


 


 


 


 


 




Period ended 30.06.20


 


 


 


 


 




Basic EPS


 


 


 


 


 




Earnings/number of shares


365


 


12,733


 


2.87




Effect of dilutive securities


-


 


25


 


(0.01)




 


 


 


 


 


 




Diluted EPS


 


 


 


 


 




Adjusted earnings/number of shares


365


 


12,758


 


2.86




 


 


 


 


 


 




Year ended 31.12.20


 


 


 


 


 




Basic EPS


 


 


 


 


 




Earnings/number of shares


1,169


 


12,733


 


9.18




Effect of dilutive securities


-


 


57


 


(0.04)




 


 


 


 


 


 




Diluted EPS


 


 


 


 


 




Adjusted earnings/number of shares


1,169


 


12,790


 


9.14




 
 
M WINKWORTH PLC 
 
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2021 to 30 June 2021
 
4.          INTANGIBLE ASSETS
                            




 


 


 


 


 


 




 


Customer lists


 


Website development


 


 
Total




 


£000's


 


£000's


 


£000's




Net book value at 1 January 2020


478


 


190


 


668




 


 


 


 


 


 




Additions


-


 


105


 


105




Amortisation


(17)


 


(34)


 


(51)




 


 


 


 


 


 




Net book value at 30 June 2020


461


 


261


 


722




 


 


 


 


 


 




Additions 


147


 


37


 


184




Acquired with subsidiary


-


 


-


 


-




Amortisation


(23)


 


(33)


 


(56)




 


 


 


 


 


 




Net book value at 31 December 2020


585


 


265


 


850




 


 


 


 


 


 




Additions


 


 


-


 


 




Amortisation


(23)


 


(28)


 


(51)




 


 


 


 


 


 




Net book value at 30 June 2021


562


 


237


 


799




 
 
M WINKWORTH PLC 
 
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2021 to 30 June 2021
 
5.          FINANCIAL INSTRUMENTS
 
Categories of financial instruments
The group has the following financial instruments:
 




 


 


 


 


 


 




 


30.06.2021


 


30.06.2020


 


31.12.2020




 


£000's


 


£000's


 


£000's




Financial assets that are debt instruments measured at amortised cost


 


 


 


 


 




Trade receivables


1,491


 


919


 


454




Loans to franchisees


632


 


671


 


525




Other receivables


222


 


70


 


32




 


 


 


 


 


 




Financial liabilities measured at amortised cost


 


 


 


 


 




Trade payables


86


 


302


 


323




Lease liability


992


 


283


 


723




Other payables


44


 


111


 


107




 


 


 


 


 


 




Financial assets measured at fair value


 


 


 


 


 




Listed investments


49


 


41


 


64




 
Listed investments are valued by reference to publicly available share prices and are considered at level 1 under the IFRS 13 fair value hierarchy.
 
                 6.          RELATED PARTY DISCLOSURES
 
During the 6 months to 30 June 2021, total dividends of £341,097 (30 June 2020: £243,273) were paid to the directors.
 
During the 6 months to 30 June 2021, the company received a dividend of £674,862 (30 June 2020: £481,316) from its subsidiary undertaking Winkworth Franchising Limited. The balance owed by Winkworth Franchising Limited to the company at 30 June 2021 was £1,267,587 (30 June 2020: £1,267,587).
 
                 7.          ACQUISITION OF FURTHER SHAREHOLDING
 
On 31 March 2021, Winkworth Franchising Limited acquired a further 35% of Tooting Estates Limited, which operates the Winkworth franchise in the Tooting area, for £136,963.  The Heads of Terms in relation to the acquisition were signed on 23 March 2021.
 
8.          INTERIM RESULTS
 
Copies of this notice are available to the public from the registered office at 1 Lumley Street, London, W1K 6TT, and on the Company's website at www.winkworthplc.com
 

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  END
 
 
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