Winkworth: ‘Why we are more optimistic about 2024'

Winkworth's network completed sales for the year fell by some 19% in 2023, the agency franchise brand has revealed but it remains more optimistic for 2024.

A trading update from Winkworth yesterday said rising interest rates and high inflation took its toll on the UK property market last year.

The update said: “As we anticipated, the gloomiest forecasts for prices were not met and prices ended the year only some 5% below their peak in the summer of 2022. Hesitancy on behalf of buyers, however, along with legal delays in conveyancing, led to a downturn in transactions. 

“A substantial number of already agreed and contracted sales will now be reported in 2024 and, with activity in Q4 2023 showing a year-on-year improvement, we have entered the New Year with a stronger pipeline than at the end of 2022.”

Winkworth's full year pre-tax profits, subject to audit, are expected to be in line with the current market forecast of £2.1m, compared with £2.47m in 2022.

Investors are also set to receive a dividend of 3p per share for the fourth quarter of 2023, bringing the total ordinary dividend payments declared for the year to 11.7p per share.

Dominic Agace, chief executive of Winkworth, said: "With inflation seemingly under control and interest rates peaking, we enter 2024 feeling more optimistic than this time last year.

Winkworth has a well-balanced revenue flow between sales and lettings and improved conditions in the former would counterbalance any slowing in the latter. After opening four new offices in 2023, we are in negotiations for some eight additions in 2024, in line with our long-term target."

https://www.investegate.co.uk/announcement/rns/m-winkworth--wink/trading-update-and-dividend-declaration/7982221