REG - M Winkworth Plc - Trading Update

M WinkworthAnnouncement

22/11/2022 07:01

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RNS Number : 1141H  M Winkworth Plc  22 November 2022

22 November 2022

M Winkworth plc

Trading Update

 

M Winkworth plc ("Winkworth" or the "Company"), the leading franchisor of real
estate agencies, is pleased to announce the following trading update for the
ten months ending 31 October 2022.

Market conditions remained strong in Q3, with network sales 38% higher than in
Q3 2021, reflecting both an overhang of uncompleted transactions from Q2 and
still strong levels of demand.

Lettings were ahead by 13% over the same period, with London rentals
continuing to be driven by higher prices rather than a significant increase in
new mandates.

After the announcement of the mini budget at the end of September 2022, which
led to a sharp rise in the cost of borrowing, new buying registrations fell
significantly. Sales already underway, however, continued to progress, with a
limited number of fall throughs and our results for October were good.

With the steps taken to reverse most of the measures introduced in the mini
budget we expect to see mortgage rates continuing to moderate and sales demand
rebounding in November 2022, before we enter the traditionally quiet Christmas
period. Rentals demand remains strong and the shortage of available properties
continues to underpin the sales market.

The Company has a healthy pipeline of three new offices due to come on board
over the coming twelve months.

As a result of this buoyant level of activity in the second half of 2022,
Winkworth's full year revenues are expected to exceed management forecasts and
our full year pre-tax profits to be ahead of the current market forecast of
£2.1m.

 

Dominic Agace, Chief Executive Officer of Winkworth, commented:

"Winkworth has performed well in 2022, a year that has been marked by both
political and economic uncertainty but, ultimately, benefited from strong
levels of UK employment. While higher mortgage rates are leading the consensus
to point to a weaker property market in 2023, we believe that our performance
next year will be underpinned by the unfulfilled needs of homeowners to move,
renewed interest in London property from international buyers and rising
prices in the rentals market."

 

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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