REG - M Winkworth Plc - Trading Update and Dividend Declaration

M WinkworthAnnouncement

10/01/2024 07:00

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RNS Number : 1428Z  M Winkworth Plc  10 January 2024

10 January 2024

M Winkworth plc

Trading Update

and

Dividend Declaration

 

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 2023.

The rise in interest rates, which began after the mini budget in Q4 2022 and
was sustained through 2023 by the fight against inflation, took its toll on
the UK property market. As we anticipated, the gloomiest forecasts for prices
were not met and prices ended the year only some 5% below their peak in the
summer of 2022. Hesitancy on behalf of buyers, however, along with legal
delays in conveyancing, led to a downturn in transactions. Winkworth's network
completed sales for the year fell by some 19%. A substantial number of already
agreed and contracted sales will now be reported in 2024 and, with activity in
Q4 2023 showing a year-on-year improvement, we have entered the New Year with
a stronger pipeline than at the end of 2022.

The shortage of rental property in 2023 and consequent rise in prices
translated into an increase in our network revenues of around 5%, offsetting
the slower sales completions. We believe that the rise of accidental
landlords, postponing their sales due to price uncertainty and switching to
the lettings market, combined with tenants hitting affordability ceilings,
will lead to lower growth in 2024 and slowing rent increases. Price increases
from previous years, however, will continue to feed through as properties come
up for re-letting, underpinning growth in the sector.

Winkworth's full year pre-tax profits, subject to audit, are expected to be in
line with the current market forecast of £2.1m (31 December 2022: £2.47m)
and net cash at year end, following increased investment in new offices in
2023, to be at least £4.4m (31 December 2022: £5.25m). The Company expects
to announce its final results for the year ended 31 December 2023 on or around
17 April 2024.

The directors of Winkworth are pleased to announce that the Company will pay
an ordinary dividend of 3.0p per share (2022: 2.9p per share) for the fourth
quarter of 2023, bringing the total ordinary dividend payments declared for
the year to 11.7p per share (2022:11.0p per share).

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

 Ex-Dividend Date *       18/01/24
  Record Date **          19/01/24
 Expected Payment Date    15/02/24

 

*  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:

"With inflation seemingly under control and interest rates peaking, we enter
2024 feeling more optimistic than this time last year. Winkworth has a
well-balanced revenue flow between sales and lettings and improved conditions
in the former would counterbalance any slowing in the latter. After opening
four new offices in 2023, we are in negotiations for some eight additions in
2024, in line with our long-term target."

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

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
(https://url.avanan.click/v2/___http:/www.winkworthplc.com___.YXAxZTpzaG9yZWNhcDphOm86YTU4MTcxMzIzNzFmY2ZmYTU2ZTNhODA5NDI5NDU4MTY6Njo4MTE4OmI2Nzg3NjJkNmFiYzNlY2ZlNTA4ZTFhY2RmY2Q0YjE3MTYwNmQ1OWZkN2YyNzM3ZGNiZjUxYzQ5NWZiNGMyZWQ6cDpU)

 

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