Property franchise group Winkworth expects FY25 adjusted pre-tax profits of around £2.1m, which is 20% below current market expectations, after a “temporary slowdown” in activity ahead of the Autumn Budget, with a number of transactions deferred.
In an update to the City, the group says trading conditions “softened more than expected” in the second half of FY25, following a strong first half performance in sales and continued growth in lettings. Revenues in the second half were “broadly in line” with the comparative period in FY24.
Revenues up 9%
For FY25 as a whole, network revenues rose by approximately 6% on FY24, with sales revenues up 9% and lettings revenues 2% higher, which the group says reflects “the resilience” of its network and its exposure to “established London and regional markets”.
Net cash at year-end is expected to be at least £3.9m (FY24: £4.1m), with the performance impacted by one-off administrative costs and a planned increase in marketing spend in prime central London, which the group says are “not expected to recur”.
Despite the slowdown, Winkworth says the Budget measures “did not materially alter the underlying supply and demand dynamics” in its markets. The Board adds it is encouraged by “strong levels of enquiry reported across the network so far in January 2026” and expects activity to pick up as mortgage rates ease further.
Early enquiry levels in 2026 have been encouraging, and with the outlook for mortgage rates improving, we believe the business is well positioned for the year ahead.”
The group says it is also continuing to actively manage and “strengthen its franchise portfolio”. The offices in which it owned an equity stake underperformed budget expectations during the year. Management changes have subsequently been made, and the Board expects trading to improve in 2026.
The company opened four new offices during FY25 and resold seven offices to new franchisees, entering FY26 with “a healthy pipeline” of further opportunities.
Chief Executive Dominic Agace said, “Early enquiry levels in 2026 have been encouraging, and with the outlook for mortgage rates improving, we believe the business is well positioned for the year ahead.”
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