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Written by rosalind renshaw

Profits for Connells estate agency operations went up 22% last year – with its boss saying that the chain is almost certainly the most profitable in the UK.

Although profits for the overall Connells Group dipped slightly, this was due to the performance of other parts of the business, including Connells Survey and Valuation, and Mortgage Services.

The group as a whole returned a profit of £48m compared with £54.1m in 2009. But a spokeswoman said that profits for the estate agency businesses Connells and Sequence had soared 22%, although she did not go into numbers.

The group hailed last year’s estate agency performance as outstanding, saying the result “is likely to make it the most profitable UK estate agency group once again”.
 
It said that its 2010 results showed its ability to outperform the market in spite of ongoing challenges in the wider economy.

Notably, the group said it had “experienced improved profits from its estate agency business last year despite depleted consumer confidence and ongoing difficulties in the mortgage market”. 
 
Stephen Shipperley, group executive chairman, said: “This is another excellent result for Connells, especially in the context of a tough market.

“2010 presented a number of challenges for the industry and once again Connells has benefited from its breadth and diversity of disciplines. Our results speak volumes about the quality of service to customers who are ever more discerning, particularly when it comes to property-related advice.”
 
Connells continued to invest in the business in 2010 with a number of new branch openings, lettings acquisitions, the acquisition of Energy Performance Certificate provider Vibrant Energy Matters, and a strategic partnership with property portal Zoopla.co.uk
 
Last month, the Connells Group said it had recorded a 7% increase in the number of people looking to sell their homes, a 4% increase in applicants, a 10% increase in viewings, a 22% increase in stock available and a 15% increase in online activity, when compared to January 2010.

Additionally, the group’s Survey & Valuation business announced a 27% increase in the number of valuations for residential property last month compared to January last year.
 
Shipperley said: “It is pleasing to see increased activity in the first month of 2011, and overall I believe we will see a gradual improvement across the housing market throughout the year.

“Our strategy remains to be a strong market leader in our core estate agency activities and to see growth in our lettings and mortgage services businesses this year. We will continue to expand our business to business services which have proved particularly successful over the last few years.
 
“Once again, I am very proud of Connells results which could not have been achieved without those who dedicate themselves to the business every day.

“Our staff continue to be our most important and valuable differentiator and they deserve all the credit for these results.”

Connells is a subsidiary of Skipton Building Society which announced its 2010 results yesterday, including those for Connells. The lender reported a pre-tax profit of £35m for last year – up 94% from the £18m pre-tax profits reported for 2009.

Skipton Building Society increased its total mortgage lending by 18% to £481m in 2010, up from £407m in 2009.

Comments

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    On the basis of those that “compete” with them know on the whole, they are not very good, must mean everyone else is up by much more, which would be a lie or more politely put, PR spun story also.

    • 24 February 2011 12:44 PM
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    May be in some parts of the UK BUT our local Sequence branch manager told us today that his Area patch had lost money LAST YEAR since the Halifax agencies had closed. He is still being told to Call Me Card and Door Knock VERY SAD.

    • 23 February 2011 21:15 PM
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    They did late 2008! sorry!

    • 23 February 2011 12:37 PM
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    Hang on a sec....didn't Connells sell their RM shares in 2008?

    • 23 February 2011 11:32 AM
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    Anonymous Coward I was confused a bit too: when I read it back squeezing my head It reads to me that they are saying out of the total figures shown Connells and Sequences contribution to these total figures were 22% better than their previous years contribution.

    The fact they then do not comment on the figures suggests the 22% increase in £ terms are very low numbers in comparison to the profits boasted and would maybe not be so wonderful if mentioned, perhaps like Ray says much is a RM peice of the pie!

    It wouldnt read so well I guess to say Connells owe it all to RM although RM would argue this would be a great headline!

    • 23 February 2011 10:57 AM
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    @ anonymous coward

    it says "group" profit was 48m down from 54m but "estate agent" profit was up 22%.

    you have to read the small print!

    • 23 February 2011 10:57 AM
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    Sorry, I think I might be a bit thick.

    How does a profit of:

    £54.1m in 2009

    compared to:

    £48m in 2010

    equate to an INCREASE in profit of 22%.

    I did GCSE maths don't you know - you can't fool me that easily...

    Even if you swap the numbers over (sorry Ros - I'm sure it's not your fault) that still only makes an increase of about 11%.

    • 23 February 2011 10:21 AM
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    I would be interested to know how much of this was from their part ownership of Rightmove?

    • 23 February 2011 09:56 AM
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