Winkworth’s network revenue fell 5% to £26.4m for the half-year to the end of June, compared to £27.7m during the same period last year, while pre-tax profit slumped 24% to £810,000, compared to £1.07m last time, after a weak second quarter for sales, with some completions delayed into the second half of the year.

The estate agency group, which saw revenue remain broadly flat on £4.3m, said its outlook for the rest of the year largely depends on the end of the tightening cycle and the Bank of England’s success in managing down inflation, though it expects the sales market to be underpinned by strong employment, sellers coming to the market to manage mortgage cost increases and buyers motivated by the lack of availability of suitable rental accommodation.

Highlights for the period:

· First half impacted by a weaker second quarter for sales with some completions being delayed into the second half of the year. Lettings revenues continued to show strength

· Network revenues down by 5% to £26.4 million (H1 2022: £27.7 million)

– Network sales revenues down by 18% to £12.3 million (H1 2022: £15.0 million)

– Network lettings revenues up by 10% to £14.0 million (H1 2022: £12.7 million)

· Network sales revenues accounted for 47% of total network revenues (H1 2022: 54%)

· Winkworth revenues at £4.27 million in line with H1 2022 (H1 2022: £4.28 million)

· Majority-owned offices generated revenues of £1.14 million (H1 2022: £1.19 million)

· Profit before taxation down by 24% to £0.81 million (H1 2022: £1.07 million)

· Cash balance at 30 June 2023 of £4.23 million (30 June 2022: £4.11 million)

· Two new franchised offices opened

· Ordinary dividends of 5.8p declared during the period (H1 2022: 5.4p)

Dominic Agace (left), chief executive officer of the firm, commented: “The H1 results reflect a slower sales market but ongoing strength in lettings. Our business remains robust and our focus continues to be on providing a platform that can allow an independent business to compete as a top three contender in its local marketplace and, by doing so, ensuring a franchisee can generate a healthy return under differing market conditions.”