REG - M Winkworth Plc - Trading Update

M WinkworthAnnouncement

12/01/2022 07:00

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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 (http://www.winkworthplc.com)

 

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