REG - M Winkworth Plc - Half-year Report
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RNS Number : 5901Z M Winkworth Plc 17 September 2025
M Winkworth Plc
Interim Results for the six months ended 30 June 2025
M Winkworth Plc ("Winkworth" or the "Company") is pleased to announce its
unaudited interim results for the six months ended 30 June 2025.
Highlights for the period:
· Network revenues 15% higher at £32.0 million (H1 2024: £27.9
million)
o Network sales revenues up by 27% to £16.9 million (H1 2024: £13.4
million)
o Network lettings revenues up by 4% to £15.1 million (H1 2024: £14.5
million)
· Network sales revenues accounted for 53% of total network revenues
(H1 2024: 48%)
· Winkworth revenues up by 1% at £5.20 million (H1 2024:
£5.14 million)
· Four majority-owned businesses generated revenues of £1.67 million
and PBT of £0.08 million (H1 2024: revenues of £1.51 million; PBT: -£0.04
million)
· Profit before taxation down by 19% to £0.83 million (H1 2024: £1.02
million), largely reflecting one off costs including office relocation and a
planned increase in marketing spend in prime central London
· Net cash generated from operating activities doubled to £0.96m (H1
2024: £0.48m)
· Cash balance at 30 June 2025 of £3.86 million (30 June 2024: £4.12
million); no debt in both periods
· Three new offices opened and two refranchised
· Increased ordinary dividends of 6.6p (H1 2024: 6.0p) per share
declared during the period.
Dominic Agace, CEO of the Company, commented:
We are delighted with our performance in sales in H1 2025 and the solid
contribution from lettings, where management fees are making an increasingly
important contribution. Net cash generated by the business nearly doubled
compared to the first half of 2024, and we have continued to invest in our
franchisees, while supporting them through new marketing initiatives. We have
also substantially increased the payout to shareholders. Further activity in
our network should result in us finishing the year above our target of opening
or reselling eight franchises per year.
Investor presentation
Dominic Agace, CEO of the Company, and Andrew Nicol, CFO of the Company, will
present the Interim Results via the Investor Meet Company platform on 17
September 2025 at 11.00 BST.
The presentation is open to all existing and potential shareholders who can
sign up and register to participate for free at:
https://www.investormeetcompany.com/m-winkworth-plc/register-investor
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Investors who already follow Winkworth on the Investor Meet Company platform
will automatically be invited.
For further information please contact:
M Winkworth PLC Tel: 020 7355 0206
Dominic Agace (Chief Executive Officer)
Andrew Nicol (Chief Financial Officer)
Shore Capital (Nominated Adviser & Broker) Tel: 020 7408 4050
David Coaten / Henry Willcocks / George Payne
Milbourne (Financial PR) Tel: 07921 881800
Charlotte McMullen
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.
For further information please visit: www.winkworthplc.com
(https://url.avanan.click/v2/___http:/www.winkworthplc.com___.YXAxZTpzaG9yZWNhcDphOm86YTkwYTQ2ZjdmMzYwYTM3ZGM4NjFlNGY1ZTUwNDQ1Yzc6Njo4MWM0Ojc4OWIzNzY4ZTQzMmE4MjNlNjJlYTc4NjkyNjQ2YWMwYTVjZWMzYzhkMzNhNDkzNjIyMDA1YzJmOWUyOTIzNTI6cDpU)
Chair's Statement
I am pleased to report that royalty fees from franchising continued to rise in
the first half of this year. At Group level, it is clear that sales are
reverting to being the prime revenue earner for the business, having risen
from 48% of turnover in the last financial year to 53% of turnover in H1 2025.
As anticipated, 2025 has to-date been characterised by a high volume of
properties for sale, these being reported as running at 10% above the average
of recent years. I am delighted that our franchisees have been able to take
advantage of the upturn in instructions, especially at our newly opened
offices, enabling these to become established quickly.
The sharp increase in sales in the first quarter of the year, in advance of
the reduction in the stamp duty exemption threshold for first time buyers as
of April 2025, provided a powerful reminder of how government intervention can
influence the market. We watch with interest the suggestions of proposals for
further reforms in the Autumn Budget. A tax on the sale of higher value
properties, for example, which, if implemented, would be a form of double
taxation on owners who have already paid stamp duty on the purchase price,
could prove to be a further hurdle for transactions at the top end of the
market.
Within our lettings and management business, the 'let only' side of the
business, that is private landlords instructing Winkworth to source tenants
without using our full management service, has shown some decline. It is
interesting to note, however, that the revenue from property management, where
typically we both find the tenant and provide ongoing management services, has
increased in many of our offices. We believe that, in an ever more demanding
regulatory environment in the rentals market, a rising number of private
landlords are relinquishing managing their own property investments and
instructing Winkworth in order to benefit from its specialist management
skills.
This also means that the Group has seen a flow of sales of 'let only' rental
investments, with up to 10% of the rented-only property portfolio being
offered for sale. In the short term, some of this rental stock is likely to
return to the market as a result of vendors not achieving their anticipated
price levels and choosing to relet properties pending a market improvement.
There is an identifiable shift, however, away from private landlords towards
institutions looking to enter this market through new-build accommodation.
Turnover from our equity-owned offices is still growing, with Pimlico
achieving a 31% year-on-year increase in the first half of 2025, Crystal
Palace a 21% increase, and more modest growth from Tooting of 3%, which has
consistently recorded a high level of activity.
We remain confident for the future and, as always, are grateful to all of our
franchisees for their dedication to their customers and their ability to adapt
to an ever-changing marketplace.
Simon Agace
Non-Executive Chair
16 September 2025
CEO's Statement
The first half of this year marked another successful period for the Group,
with network revenue 15% ahead of H1 2024. Sales activity was the main driver,
with revenue up by 27% year-on-year. After more subdued activity in recent
years, our outer London offices were prime beneficiaries of falling interest
rates and, consequently, reduced mortgage rates, leading the way with
comparable revenue growth of 33%. Our Central London offices also showed a
revival, with growth in revenue of 25%, reflecting our reinvestment in this
area and a realistic approach by sellers to accept pricing changes and
transact.
The picture outside of London was more mixed. The race to beat the April 2025
deadline on stamp duty thresholds proved to be a strong motivation in the
first quarter of the year, but this was followed by a slowdown in the second
quarter, leading to an aggregate increase in revenues of 20% compared to H1
2024.
Overall, our network transactions rose by 21% over H1 2025, markedly
outperforming the increase in the national average.
As noted in the 16 July 2025 trading update, our Lettings and Management
business was more subdued, growing by 4% at the end of the period. But while
lettings revenue fell by 4%, management fees rose by 10% and now represent 25%
of network turnover. These numbers reflect our network adjusting to a
tightening of supply of rental stock as landlords exit the sector and our
franchisees provide an increased level of service to those remaining,
typically in need of greater help to manage changing legislation and increased
regulation.
Our ongoing policy of investing in people continues to pay off, with a variety
of options on offer to talented operators at different stages of their careers
and with varying financial circumstances. This flexibility is allowing us to
attract a high-quality pool of ambitious managers that we can match to new
openings or resales. We also continue to provide support to existing
franchisees with the desire and experience to expand their territories or
acquire further businesses.
We opened three new offices in H1 2025 in Clapham, West Putney and Belsize
Park, and resold two offices in Beckenham and Hammersmith. A further two
offices in Newbury and Weybridge have already been resold in H2 2025 and two
more offices are scheduled to be resold and a further two offices are due to
open before the end of the year. Of these 11 offices, three involve existing
franchisees expanding their footprint and nine are within greater London,
where growth is currently strongest and there is the headroom for both new and
existing franchisees to add value to the Group. Two offices, Worthing and
Wimbledon, will have closed over the course of 2025, positioning us above our
target of opening or reselling eight franchises per year.
We saw a significant improvement in the performance of our equity-owned
offices in Crystal Palace, Pimlico and Tooting. The latter has benefitted from
strengthened management and, we believe, will show an acceleration in
performance in H2 2025.
In H1 2025, gross revenues of the franchised network of £32.0m were 15%
higher year-on-year (H1 2024: £27.9m). Total sales income was 26% higher at
£16.9m (H1 2024: £13.4m) while Lettings and Management increased by 4% to
£15.1m (H1 2024 £14.5m).
At £5.20m, Winkworth's revenues were 1% higher than H1 2024 (H1 2024:
£5.14m) with the year-on-year comparable numbers being impacted by timing
differences on revenues booked on new or resold franchise agreements, in
particular, the ongoing proceeds from the sale of the Kennington lettings
business to our Kennington sales franchisee. Profit before taxation declined
by 19% to £0.83m (H1 2024: £1.02m), largely as a result of a planned
increase in marketing costs in prime Central London to support the new talent
and other one-off costs, relating to our head office move and consultancy work
relating to our systems development. Net cash generated from operating
activities doubled to £0.96m (H1 2024: £0.48m). After an increase in
pre-paid acquisition support to franchisees and a 10% increase in ordinary
dividends paid, the Group's cash stood at £3.86m at 30 June 2025 (H1 2024:
£4.12m) with no debt. Increased ordinary dividends of 6.6p (H1 2024: 6.0p)
per ordinary share were declared for the first half of the year.
Outlook
After the strong uplift in Q1 completions ahead of the stamp duty holiday in
April 2025, activity slowed in Q2, but we have since seen renewed interest
from sales applicants over the summer, up by around 10% year-on-year. This
provides encouragement for a busier autumn market, albeit that the autumn
statement will inevitably be a cause of uncertainty.
The Bank of England's cut to Bank Rate in August, to 4.0%, is feeding through
to lower mortgage costs, improving affordability, particularly for first-time
buyers, with any further cuts set to provide additional support. UK house
prices have remained resilient and we expect modest growth of up to 4% in
2025, with London expected to outperform as confidence and demand improve. We
expect transactions to pick up in the autumn with stronger buyer sentiment as
inflation cools and wages continue to outpace living costs.
We expect the rental market to stabilise in H2 2025, with prices remaining
subdued, providing some relief for tenants after years of steep rises. In the
medium term, however, structural undersupply suggests that rental pressures
will return in 2026.
Our focus remains on growing the business through recruiting best-in-class
operators, supporting our franchisees, and expanding our network, positioning
Winkworth to continue to build market share and deliver sustainable returns.
Dominic Agace
Chief Executive Officer
16 September 2025
M WINKWORTH PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period 1 January 2025 to 30 June 2025
(Unaudited) (Unaudited)
Period Period
1.1.25 1.1.24 (Audited)
To To Year ended
30.6.25 30.6.24 31.12.24
£000's £000's £000's
CONTINUING OPERATIONS
Revenue 2 5,202 5,143 10,794
Cost of sales (764) (880) (1,666)
GROSS PROFIT 4,438 4,263 9,128
Administrative expenses (3,668) (3,273) (6,842)
OPERATING PROFIT 770 990 2,286
Finance costs (29) (32) (60)
Finance income 84 63 138
PROFIT BEFORE TAXATION 825 1,021 2,364
Taxation (218) (262) (592)
PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 607 759 1,772
615 759 1,756
Profit and total comprehensive income attributable to:
Owners of the parent
Non-controlling interests (8) - 16
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT
607 759 1,772
Earnings per share expressed
in pence per share: 3
Basic 4.77 5.88 13.73
Diluted 4.63 5.83 13.33
M WINKWORTH PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2025
(Unaudited) (Unaudited) (Audited)
30.06.2025 30.06.2024 31.12.2024
Notes £000's £000's £000's
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 1,192 1,275 1,238
Property, plant and equipment 801 869 828
Prepaid assisted acquisitions support 926 572 822
Investments 7 7 7
Trade and other receivables 823 693 674
3,749 3,416 3,569
CURRENT ASSETS
Trade and other receivables 1,770 1,492 1,539
Tax receivable 34 - 26
Cash and cash equivalents 3,860 4,124 4,085
5,664 5,616 5,650
TOTAL ASSETS 9,413 9,032 9,219
EQUITY
SHAREHOLDERS' EQUITY
Share capital 65 65 65
Share premium 179 179 179
Retained earnings 6,366 6,380 6,603
6,847
6,610 6,624
Non-controlling interests 8 - 16
TOTAL EQUITY 6,618 6,624 6,863
LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables 567 706 638
Deferred tax 159 173 163
726 879 801
CURRENT LIABILITIES
Trade and other payables 2,045 1,476 1,461
Tax payable 24 53 94
2,069 1,529 1,555
TOTAL LIABILITIES 2,795 2,408 2,356
TOTAL EQUITY AND LIABILITIES 9,413 9,032 9,219
M WINKWORTH PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the period 1 January 2025 to 30 June 2025
Share Share Non controlling
Share Retained Premium option Shareholders'
capital earnings account reserve interest equity
£000's £000's £000's £000's £000's £000's
Balance at 1 January 2024 65 6,396 179 - - 6,640
Total comprehensive income - 759 - - - 759
Dividends paid - (775) - - - (775)
Balance at 30 June 2024 65 6,380 179 - - 6,624
(unaudited)
Total comprehensive income - 997 - - 16 1,013
Dividends paid - (774) - - - (774)
Balance at 31 December 2024 65 6,603 179 - 16 6,863
(audited)
Total comprehensive income - 615 - - (8) 607
Dividends paid - (852) - - - (852)
Balance at 30 June 2025 65 6,366 179 - 8 6,618
(unaudited)
M WINKWORTH PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
for the period 1 January 2025 to 30 June 2025
(Unaudited) (Unaudited)
Period Period
1.1.25 1.1.24 (Audited)
To To Year ended
30.6.25 30.6.24 31.12.24
Notes £000's £000's £000's
Cash flows from operating activities
Cash generated from operations i 1,258 858 2,385
Interest paid (2) - -
Tax paid (300) (375) (700)
Net cash generated from operating activities 956 483 1,685
Cash flows from investing activities
Purchase of intangible fixed assets (75) (82) (158)
Purchase of tangible fixed assets (75) (24) (70)
Sale of fixed asset investments - 57 56
Prepaid assisted acquisition (170) (8) (330)
Interest received 84 63 138
Net cash (used in)/generated from investing activities (236) 6 (364)
Cash flows from financing activities
Payment of lease liabilities (66) (106) (175)
Interest paid on lease liabilities (27) (32) (60)
Equity dividends paid (852) (775) (1,549)
Net cash used in financing activities (945) (913) (1,784)
(225) (424) (463)
Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period 4,085 4,548 4,548
Cash and cash equivalents at end of period ii 3,860 4,124 4,085
M WINKWORTH PLC
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
for the period 1 January 2025 to 30 June 2025
i. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
(Unaudited) (Unaudited)
Period Period
1.1.25 1.1.24 (Audited)
To To Year ended
30.6.25 30.6.24 31.12.24
£000's £000's £000's
Profit before taxation 825 1,021 2,364
Depreciation and amortisation 287 288 568
Finance costs 29 32 60
Finance income (84) (63) (138)
Profit/(loss) on disposal of fixed asset 1 (1) -
1,058 1,277 2,854
(373) (385) (413)
(Increase) in trade and other receivables
Increase/(decrease) in trade and other payables 573 (34) (56)
Cash generated from operations 1,258 858 2,385
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:
30.6.25 30.6.24 31.12.24
£000's £000's £000's
Cash and cash equivalents 3,860 4,124 4,085
M WINKWORTH PLC
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2025 to 30 June 2025
1. ACCOUNTING POLICIES
Basis of preparation
The interim report for the six months ended 30 June 2025 and the comparative
information for the periods ended 30 June 2024 and 31 December 2024 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 2024 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 2025 and 30 June
2024 is unaudited. The financial information for the year ended 31 December
2024 is derived from the group's audited annual report and accounts.
The annual financial statements are prepared in accordance with UK adopted
International Accounting Standards (UK IFRS). 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 2025 to 30 June 2025
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 2025 6 months 2024 12 months 2024
£000 £000 £000
Revenue
Corporate owned offices 1,669 1,512 3,446
Commissions and subscriptions due to the group under franchisee agreements
3,533 3,631 7,348
5,202 5,143 10,794
All revenue is earned in the UK and no customer represents more than 10% of
total revenue in either of the years reported.
6 months 2025 6 months 2024 12 months 2024
£000 £000 £000
Profit/(loss) before tax
Corporate owned offices 80 (43) 200
The group under franchisee agreements 745 1,064 2,164
825 1,021 2,364
M WINKWORTH PLC
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2025 to 30 June 2025
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 30.06.25
Basic EPS
Earnings/number of shares 615 12,909 4.77
Effect of dilutive securities - 387 -
Diluted EPS
Adjusted earnings/number of shares 615 13,296 4.63
Period ended 30.06.24
Basic EPS
Earnings/number of shares 759 12,909 5.88
Effect of dilutive securities - 110 -
Diluted EPS
Adjusted earnings/number of shares 759 13,019 5.83
Year ended 31.12.24
Basic EPS
Earnings/number of shares 1,772 12,909 13.73
Effect of dilutive securities - 387 -
Diluted EPS
Adjusted earnings/number of shares 1,772 13,296 13.33
M WINKWORTH PLC
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2025 to 30 June 2025
4. INTANGIBLE ASSETS
Customer lists Website development
Total
£000's £000's £000's
Net book value at 1 January 2024 787 513 1,300
Additions - 82 82
Amortisation (33) (74) (107)
Net book value at 30 June 2024 754 521 1,275
Additions - 76 76
Amortisation (36) (77) (113)
Net book value at 31 December 2024 718 520 1,238
Additions - 75 75
Amortisation (34) (87) (121)
Net book value at 30 June 2025 684 508 1,192
5. FINANCIAL INSTRUMENTS
Categories of financial instruments
The group has the following financial instruments:
30.06.2025 30.06.2024 31.12.2024
£000's £000's £000's
Financial assets that are debt instruments measured at amortised cost
Trade receivables 1,196 885 880
Loans to franchisees 1,139 949 939
Other receivables 258 98 143
Financial liabilities measured at amortised cost
Trade payables 1,054 674 321
Lease liability 706 836 772
Other payables 37 38 109
Financial assets measured at fair value
Listed investments 7 7 7
Listed investments are valued by reference to publicly available share prices
and are considered at level 1 under the IFRS 13 fair value hierarchy.
M WINKWORTH PLC
NOTES TO THE CONSOLIDATED INTERIM RESULTS
for the period 1 January 2025 to 30 June 2025
7. RELATED PARTY
DISCLOSURES
During the 6 months to 30 June 2025, total dividends of £433,558 (30 June
2024: £394,144) were paid to the directors.
8. POST BALANCE SHEET EVENTS
On 16 July 2025, M Winkworth Plc declared dividends of 3.3p per ordinary share
for the second quarter of 2025.
9. INTERIM RESULTS
Copies of this notice are available to the public from the registered office
at Cannon Place, 78 Cannon Street, London, EC4N 6AF, and on the Company's
website at www.winkworthplc.com
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