Connells Group 'remains optimistic' despite drop in profits and sales

The Connells Group has said it remains optimistic about the year ahead after reporting falling profits and a decline in exchanges for last year.

Its 2022 financial results showed the brand posted revenues of £1bn but pre-tax profits fell from £11.3m in 2021 to £67.5m last year.

Total house sale exchanges were down 18% on a like-for-like basis, attributed to “disappointing pipeline conversion rates due to market-wide delays in conveyancing, together with wider economic headwinds adversely affecting consumer confidence.”

The results also showed that buyer registrations reduced by 10%.

Despite this, Connells said it still ended year with 10% market share.
 

David Livesey, group chief executive for the Connells Group, said: “2022 was an extraordinary year, with a number of unprecedented events impacting the housing market and wider economy – the war in Ukraine, cost of living crisis, political upheaval, disastrous mini budget and upward movement on bank base rates. Set against this backdrop, these are a robust set of results. 

“The collective effort and perseverance from colleagues across the breadth of our group ensures our success, and we thank them for their continued contribution to our business. 

“Looking forward, we’re optimistic for the year ahead and, with early 2023 showing signs of returning to more ‘normal’ market conditions, we expect to see activity continue at a steady pace.”