Winkworth reported a fall in annual profits despite flat revenue, as a weak second half offset a strong start to the year.
The company posted revenues of £10.74 million for the year to December 31, 2025, broadly unchanged from £10.79 million the previous year. However, pre-tax profit fell 11% to £2.11m.
The company said trading in the first half of the year was supported by strong sales activity, driven by the rush to complete transactions ahead of changes to stamp duty limits. Activity slowed towards the end of the year as uncertainty around the autumn budget weighed on market sentiment.
Transactions in Greater London were at 73,000 in 2025 – below the level recorded during the financial crisis in 2008 – as key central London markets remained under continued pressure from weak international demand and cautious sentiment about UK growth. Luxury properties remain under pressure across sectors.
Across Winkworth’s franchise network, revenue rose 6% to £68.7 million. Sales income rose 10% to £35.8 million, while rental income rose more modestly, rising 3% to £32.9 million. Sales accounted for 52% of total revenue, slightly higher than last year.
Within rental figures, property management income rose 9% to £17 million, outpacing rental income for the first time. Property management accounted for 24.8% of network revenue, while lettings accounted for 22.7%, reflecting both the decline in the number of landlords in the sector and the increasing demand from remaining landlords for fully managed services prior to the Tenant Rights Act.
The group maintained a positive balance sheet and ended the year with £3.9 million in cash and no debt. The full-year dividend rose 7% to 13.2p per share.
Winkworth opened four new offices and completed seven franchise resales during the year. Since the end of the year, it has added four further offices through its largest facilitated acquisition to date – the integration of Peter Clarke estate agents with its Leamington Spa franchise, creating a new hub for network expansion.
Looking ahead, the company said trading remained resilient into early 2026, with sales registrations and agreed sales in line with recent years. However, it cautioned that the conflict in the Middle East has 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 at the start of the year.
Chief executive Dominic Eges said: “Last year was one of two halves, with an excellent H1 in sales offset by a weak H2. Lettings remained stable with continued progress in property management.
“While the outlook to 2026 is subject to geopolitical developments, we continue to manage the company with the interests of our customers, franchisees and shareholders in mind. We have already welcomed four new offices in 2026 and will move forward with openings and resale as the year progresses.”