Winkworth reported a significant recovery in sales activity for the financial year ended 31 December 2024 yesterday as it enters 2025 celebrating its 190th anniversary since its founding in Mayfair, London, in 1835.
The agency fanchise business saw a substantial rebound in sales agreed during 2024, driven by declining finance costs and a shift in household priorities following a prolonged period of market uncertainty.
Sales agreed rose by 19% year-on-year in the first half of the year and by 27% in the second half, culminating in a 23% increase for the year as a whole. Completed sales also rose by 19% compared with the prior period.
The company attributes this growth to real wage increases and expectations of lower interest rates, which spurred buyer confidence.
OPTIMISTIC
The Board says that it’s optimistic about the momentum carrying into 2025, with activity expected to be particularly robust in the first quarter as first-time buyers aim to complete transactions before the stamp duty discount ends in April 2025.
LETTINGS
While sales surged, lettings activity experienced a slight decline. Lettings applicants fell by 5% compared to 2023, but full-year revenues from lettings are expected to rise by 5-6% due to increased rental prices.
Pre-tax profits for 2024, subject to audit, are projected to meet market expectations of £2.35 million, up from £2.15 million in 2023. Net cash at year-end is anticipated to be at least £3.90 million, compared with £4.55 million at the end of 2023.
As a result Winkworth announced an ordinary dividend of 3.3p per share for the fourth quarter of 2024, an increase from 3.0p per share in Q4 2023. This brings the total dividend for 2024 to 12.3p per share, a 5.13% increase compared to 11.7p per share in 2023. The ex-dividend date is set for 23 January 2025, with payment scheduled for 20 February 2025.
FUTURE GROWTH
Dominic Agace (main picture), Chief Executive of Winkworth, says: “The positive trends in sales activity witnessed in H2 2024 bode well as we enter 2025 and, as a well-balanced sales and lettings business, we are in a good position to take advantage of an increase in sales transactions.
“In 2024, we invested significantly in bringing new talent into the business, acquiring existing offices, and supporting the expansion of existing franchisees. We expect these investments to bear fruit in 2025 and 2026 and to further strengthen our market position.”
Winkworth expects to maintain positive activity levels in 2025, bolstered by the anticipated continuation of favorable market conditions. The company plans to release its full results for the year ended 31 December 2024 on or around 17 April 2025.
