Connells Group - the largest agency group in the UK after its purchase of Countrywide - has today announced its financial results for the first six months of 2022.
The Group maintained its 10% market share across its 1,250 estate agency branch network and ended the period with a sales pipeline up 11% on 2021, 'showing continued strong buyer demand'.
That said, it also revealed that revenue decreased by 13% on a like-for-like basis. It blamed this on the more challenging housing market conditions, impacted by 'lack of stock, slow pipeline conversion and wider economic headwinds'.
As a result, the Group has reported an underlying EBITDA of £62.6 million, down considerably from £112.6 million in the first half of 2021. It called this 'another creditable result'.
David Livesey, Connells Group CEO, commented: “The market has been less frenetic in recent months following the exceptional conditions of 2021, where we saw a push for completions ahead of the stamp duty holiday deadline, pent up demand and low interest rates leading to record high transaction levels.”
He added: “Although the UK economic outlook is unsettled with the cost of living and interest rates rising, plus the war in Ukraine, there remains strength in an active housing market.
Livesey said, with the ongoing imbalance between demand and supply still remaining the key market feature, and a build-up of sales transactions working their way through the system, the Group remains encouraged by its 'strong sales pipeline'.
"Connells Group has successfully worked through all types of markets, and our outlook for the latter half of this year remains positive. Our people thrive on challenge and our breadth of business will allow us to maintain our market-leading position,” he concluded.
It was the latest set of trading results in a week which has seen LSL announce a loss of £1m in its Estate Agency Division in its half-year results, which it blamed on conveyancing delays slowing down its pipeline, as well as Purplebricks announcing a disastrous set of full-year results, where revenue and profit both fell.
Yesterday, The Property Franchise Group announced a far more positive set of figures, with revenue increasing significantly versus the first half of 2021, although this was driven mainly by the acquisition of Hunters and Mortgage Genie. One of its main brands, hybrid agency EweMove, saw a dip in new territories.