M Winkworth Plc Trading Update (9084O)
November 10 2016 - 10:16AM
UK Regulatory
TIDMWINK
RNS Number : 9084O
M Winkworth Plc
10 November 2016
10 November 2016
M Winkworth plc
Trading Update
M Winkworth plc ("Winkworth" or the "Company"), the leading
franchisor of real estate agencies, is providing the following
trading update for the period from July to November 2016.
In our interim statement we referred to ongoing economic
uncertainty, but noted that trading was expected to pick up from
the lows of June and July and that transactions in the country and
suburban London markets were expected to return to growth in the
latter part of the year. At that point, stock levels across the
industry were low as sellers waited for greater visibility before
marketing their property.
Since that time we have seen purchasers returning, albeit at a
lower level than this time last year, and a moderate upturn in
sales. Uncertainty continues to weigh on transactions, however, as
some sellers withdraw from the market with the intention of
reviewing their situation in 2017.
Meanwhile, we have seen rental prices softening in line with an
increase in supply of properties following the surge in buy-to-let
purchases prior to the rise in stamp duty in the spring. We do not
expect to see this dynamic changing in the immediate future.
As a result of the slower than anticipated level of activity
over the autumn, both sales and full year profits are likely to be
moderately below market expectations. We are today, nonetheless,
declaring an increased dividend for the third quarter of 1.8p and
the full year ordinary dividend payment will once again be ahead of
the previous year.
Going into 2017, we continue to anticipate a further 6-8 new
openings and a further 1-2 resales, while longer term we expect to
see an increase in opportunities both to convert existing
businesses to the Winkworth brand and to grow new franchises.
Dominic Agace, Chief Executive Officer of Winkworth,
commented:
"The referendum on Europe and results of the US presidential
elections have provided much cause for reflection over the course
of this year and it is perhaps no surprise that some homeowners
have put moves on hold as a result. The fundamentals of the housing
market in London and its surrounding areas remain strong, however,
and with a business model which adapts well to changes in market
activity we remain very confident in the long term outlook for the
Company."
For further information please contact:
M Winkworth PLC Tel : 020 7355 2866
Dominic Agace (Chief Executive Officer)
Andrew Nicol (Chief Financial Officer)
Milbourne Tel : 020 3540 6458
Tim Draper (Financial PR)
Stockdale Securities Limited (NOMAD and Broker) Tel: 020 7601 6100
Robert Finlay / Ed Thomas
About Winkworth
Winkworth is a leading franchisor of residential real estate
agencies and is admitted to trading on the AIM Market of the London
Stock Exchange.
Established in Mayfair in 1835, Winkworth has a pre-eminent
position in the mid to upper segments of the central London
residential sales and lettings markets. In total the company
operates from some 100 offices, having expanded consistently in
recent years.
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. Franchisees deliver
in-depth local knowledge and a highly personalised service to their
clients.
www.winkworthplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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