(Alliance News) - M Winkworth PLC shares rose by nearly 10% on Wednesday as the estate agent predicted annual profit ahead of market forecasts and rewarded shareholders with a special payout.
Winkworth did not provide specific details of the estimates, and will release full-year results for 2021 on or around April 12, 2022.
The company's share price rose by 9.3% to 213.16 pence each in London on midday Tuesday.
The London-based real estate agency franchisor said that strong sales activity in the final quarter, as a result of continued interest in relocation, boosted year-on-year performance by 13% over on 2020, and 42% on 2019.
For the current year, Winkworth sees a good outlook for sales and an improved rental market in London, anticipating continued underlying growth of the business.
"Prime Central London continues to show signs of recovery, although the outlook for international interest remains dependent on travel restrictions," Winkworth said of the rental market. London rentals remained strong, but seasonal slowdown was seen in other areas.
Winkworth also announced a quarterly dividend of 2.7 pence per share, 50% higher than 1.8p in the previous year, as well as a special dividend of 3.8p share. Shareholders can expect the dividend payment on February 17, 2022 for shares purchased before next Thursday.
The total dividend payment for the year of 17.0p, more than double 6.68p in 2020.
Chief Executive Officer Dominic Agace commented: "We are conscious of the rising interest rate environment, but the cost of finance remains at a record low and we believe that there is still pent-up desire from households to relocate. Buyer demand over the end of year break has been reported at record levels and sellers finally seem to be returning to the market. While this may hold back the solid growth in prices of the last two years, it bodes well for the number of transactions and we expect another busy year."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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M Winkworth (WINK)