LONDON (Alliance News) - M Winkworth PLC said Tuesday pretax profit jumped in its full-year as the firm benefited from dynamic growth in the residential property market.
The London-focused estate agency said pretax profit rose 57.9% to GBP1.7 million from GBP1.1 million last year, and revenue rose 15.2% to GBP4.9 million from GBP4.3 million the previous year.
In its final results for the year to December 31, Winkworth said cash generated from operations nearly doubled, reaching GBP2.2 million from GBP1.2 million the year before.
The company also declared a final interim dividend of 1.4 pence, bringing the total dividend payable for the year to 5.4p per ordinary share, compared to the 4.9 pence paid in 2012.
During the course of the year, sales from franchised offices rose 19% to GBP46 million, said Winkworth, and it also opened four new offices.
With "dynamic" growth returning to the residential property market during 2013, Winkworth said it expects further improvement in 2014 and a "significant increase in transactions as these move back towards their historic peak some 27% above last year's level."
London property sales accounted for 80% of Winkworth's total sales, but the firm also reported a 31% increase in revenues from its country offices.
Lettings and management sales in the country were also boosted, up 36%, compared to 7% in London and 8% overall.
"The strategy which we adopted during the downturn, of opening new offices in key locations outside of London where transactions were most depressed, is starting to pay dividends. The country markets are showing a marked recovery and, as a result, we expect activity there to grow particularly strongly," said Chief Executive Dominic Agace.
"We look forward to extending our presence and growing our market share with the opening of new offices and this year's launch of a database management centre," he added.
Looking ahead, the firm said it has been encouraged by trading since the beginning of the year, and it expects another positive year for the property market, with the still benign lending conditions expected to lead to a 15% increase in transactions on 2013.
"As focus returns to the sales market we expect growth in rentals to slow, with the notable exception of prime central London where we envisage an increase in jobs in the financial sector and stronger corporate relocation budgets that will drive positive rental growth for the first time since the 2008 credit crunch," said Agace.
Shares in Winkworth were trading 5.33% higher at 158.00 pence per share Tuesday afternoon.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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M Winkworth (WINK)