Winkworth reported a fall in annual profits despite flat revenues, as a weaker second half offset a strong start to the year.
The company posted revenue of £10.74m for the year to 31 December 2025, broadly unchanged from £10.79m the previous year. However, profit before tax declined by 11% to £2.11m.
The company said trading in the first half of the year had been supported by strong sales activity, driven in part by a rush to complete transactions ahead of changes to stamp duty thresholds. Activity slowed later in the year as uncertainty around the autumn budget weighed on market sentiment.
Transactions in Greater London in 2025 stood at 73,000 – below the level recorded during the financial crisis in 2008 – as prime central London markets came under sustained pressure from weak international demand and cautious sentiment around UK growth. Luxury properties across all areas remained under downward pressure.
Across Winkworth’s franchised network, revenues rose by 6% to £68.7m. Sales income increased by 10% to £35.8m, while lettings income grew more modestly, up 3% to £32.9m. Sales accounted for 52% of total revenues, slightly higher than the previous year.
Within the lettings figures, property management income grew by 9% to £17m, overtaking lettings income for the first time. Property management accounted for 24.8% of network income, compared with 22.7% for lettings, reflecting both a reduction in the number of landlords in the sector and growing demand from remaining landlords for fully managed services ahead of the Renters’ Rights Act.
The group maintained a positive balance sheet, ending the year with £3.9m in cash and no debt. Full-year dividends increased by 7% to 13.2p per share.
Winkworth opened four new offices during the year and completed seven franchise resales. Since the year end, it has added a further four offices through its largest assisted acquisition to date — the integration of Peter Clarke Estate Agents with its Leamington Spa franchisee, creating a new hub for network expansion.
Looking ahead, the company said early 2026 trading had been resilient, with sales registrations and agreed sales broadly in line with recent years. However, it cautioned that the conflict in the Middle East had led to a sharp reversal in mortgage rates, with major lenders raising fixed rates as swap rates rose on inflation concerns, reversing some of the affordability gains seen earlier in the year.
Dominic Agace, chief executive, said: “Last year was very much one of two halves, with an excellent H1 in sales being tempered by a weaker H2. Lettings remained stable, with ongoing progress in property management.
“While the outlook for 2026 is subject to geopolitical developments, we continue to manage the company with the interests of our customers, franchisees and shareholders at heart. We have welcomed four new offices already in 2026 and will progress further with openings and resales as the year progresses.”
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