M Winkworth (WINK) H1 2025 earnings summary

Executive summary

• Celebrated 190th year, operating a franchising model since 1981 with 100 UK offices, focusing on prime and mid-to-upper family house markets, especially in London and commuter belts.

• Delivered strong H1 2025 results, meeting management expectations, with network revenues up 15% to £32.0m, driven by a 27% rise in sales and a 4% increase in lettings.

• Opened three new offices and refranchised two, with further expansion expected to exceed the annual target of eight franchise openings or resales.

• Net cash from operating activities doubled to £0.96m, supporting franchisee expansion.

• Increased ordinary dividend per share by 10% to 6.6p.

Financial highlights

• Network revenue up 15% to £32m in H1; sales revenue up 27% to £16.9m, lettings revenue up 3–4% to £15.1m.

• Company revenue up 1% to £5.2m; owned offices revenue up 11% to £1.67m.

• Profit before tax down 19% to £0.83m, impacted by one-off costs including office relocation and increased marketing.

• Cash at period end £3.86m–£3.90m, with no debt.

• Basic EPS was 4.77p (H1 2024: 5.88p); gross margin improved to 85.4%.

Outlook and guidance

• Focus on attracting new franchisees, growing existing territories, and maintaining a top-three market position.

• Ongoing investment in digital capabilities and talent acquisition to drive future growth.

• Progressive dividend policy to be maintained, with quarterly payments.

• Renewed sales interest and a potential boost from lower mortgage rates and a positive house price outlook.

• Plans to recycle capital and evaluate owned office performance as opportunities arise.