After a boom year in 2010, Winkworth has said it will be opening more offices and is already talking to a number of agents. It has also made it plain that it will expand by purchasing.
In addition, it is predicting a weaker housing market – which it says will give it increased acquisition opportunities.
In March, Winkworth raised £1m through a placing of new shares in order to grow the group.
The company has just released its audited accounts for last year, which show that sales grew 9.5% to £3.7m and profits went up 28% from £0.9m to £1.1m. Transactions were up 22% as it grew market share.
Agents outside London which rebranded to Winkworth increased turnover and handled properties of higher value than under their previous brands.
Winkworth opened seven new offices last year, when there were 114 new franchise applicants compared to 54 in the previous year. It plans to open up to ten new offices this year.
The firm said: “The London market continues to out-perform the national market, where we have seen ongoing weakness in transactions. This weakness is likely to lead to an increase in acquisition opportunities. The estate agency business remains highly competitive and, in a reduced volume market, we believe that strong brands will continue to gain market share.”
Winkworth says it has had ‘quality’ applications for new franchises. “Notably, these have been from chartered surveyors and estate agents from amongst our competitors with many years’ experience, bolstering our confidence for ongoing growth from these new potential franchisees.”
Chief executive Dominic Agace said: “For 2011 as a whole, we anticipate a fall in prices of 5% outside of prime markets which are expected to hold their value.
“The key determinants will be the level of interest rates and the extent and timing of any increases. We believe that current expectations of an increase of between 0.5% and 1% can be absorbed by the property market this year.
“Where there are forced sellers due to public sector cuts, however, we envisage that prices may fall further.”
He added: “The company is in discussions with a number of smaller agencies in strategically important territories to potentially join the Winkworth group.”
Winkworth also announced its latest acquisition, four offices in the Bournmouth area currently branded as Mitchells. Mitchells has operated for over 40 years and has remained under the same ownership for the last 25.
The offices joining the Winkworth franchise network are in Southbourne, Penn Hill, Westbourne and Canford Cliffs which services the Sandbanks area, well-known for being the fifth most expensive place in the world to buy a property.
The offices are being acquired for a cash consideration of £455,000 and will be rebranded as Winkworth.
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