(Alliance News) - Hunters Property PLC said Thursday it expects its annual results to be ahead of expectations as net income increased despite market challenges.
The sales and lettings agency said that despite the introduction of the tenant fee ban at the beginning of June, its impact was successfully reduced to less than 1.5% turnover for the remainder of the year.
Net income for 2019 was up 7% at GBP42.4 million in comparison to GBP39.4 million reported in 2018, with the addition of 20 new branches over the course of the year contributing GBP278,000 to the total amount.
For 2018, the company posted pretax profit of GBP969,000 on revenue of GBP14.0 million.
The stock was trading 0.7% higher at 74.50 pence each on Thursday afternoon in London.
Looking ahead, Hunters said that market sentiment is improving and it believes that its investment in growing its lettings business, as well as in technology places it in a position where it will continue to attract independent operators.
"Going forward, our technology project will enhance our service by driving productivity at a local level whilst simultaneously facilitating cost reductions in branches. This, combined with our success in growing branch numbers organically means we are optimistic for continued success over the next few years," said Chief Executive Glynis Frew.
"We retain a strong financial position to both expand our network and with healthy dividend cover look to increase and maintain the company's progressive dividend policy," he added.
For the year prior, Hunters proposed a final dividend of 1.60p, resulting in a total dividend of 2.40p.
Full results will be published on April 2.
By Ife Taiwo; ifetaiwo@alliancenews.com
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