(Alliance News) - M Winkworth PLC on Wednesday said it will cut dividend payout for the first half of 2020 as earnings were hurt by the coronavirus pandemic.
The AIM-listed estate agent reported a 4.2% drop in revenue to GBP2.5 million for the six months to the end of June from GBP2.7 million generated a year ago. Pretax profit, meanwhile, fell by 20% year-on-year to GBP461,000 from GBP578,000.
Total income from Winkworth's outer London markets, which represent 60% of its business, fell by only 7%, while with international clients leaving London and all but essential travel being banned, the company's central London business remained the most sensitive, with a 27% reduction in income in the first half of 2020.
For the half-year, Winkworth declared a dividend of 3.08 pence, down from 3.8p paid a year earlier.
"Winkworth emerged from lockdown with increased market share after rapidly adapting to the changed environment. As a result, in relative terms, our first half performance in sales was satisfactory and lettings and management proved solid," said Chief Executive Dominic Agace.
Going forward, Winkworth said it has seen a spike in activity in the first two months of the second half.
"Our balance sheet continues to be strong and we are working hard to explore new opportunities for organic growth," added Agace.
Winkworth shares were trading 9.6% lower in London on Wednesday at 132.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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M Winkworth (WINK)