Franchise giant Winkworth has reported strong results for the first half of 2014 with sales income up by over 20 per cent, pre-tax profits up by a third, and four new offices opened.
Winkworth's franchisees increased sales transactions by 28 per cent, with a particularly strong showing in the country markets where transactions were 43 per cent higher. The gross property revenues of franchisees grew by 23 per cent from £19.1 million to £23.5 million, within which rental income rose by 11 per cent to £7.9m.
Winkworth's revenues were up 20.4 per cent to £2.49 million (2013: £2.07 million). Profit before tax rose 35.2 per cent to £803,785 (2013: £594,633). Cash generated stood at £436,582 (2013: £455,164 - the reduction in cash being a result of lending to franchisees).
The firm has concentrated on expansion outside of central London with new offices in Salisbury, Ramsbury, Enfield and London Colney and has enjoyed what its half-year statement calls exceptionally good opportunities in towns such as Weybridge and Guildford.
Prime central London was more subdued as a strengthening pound and uncertainty surrounding the election and the mansion tax debate led to international and domestic buyers becoming more cautious. Even so, the firm's offices in prime central London outperformed the first half of last year with transactions broadly flat at one per cent higher but sales income up by 20 per cent as a result of an improvement in market share, combined with a 20 per cent increase in rentals income.
Winkworth has now launched a six-person client services department, initially across 30 offices, referring applicants across the group.
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