M Winkworth PLC on Wednesday said the company’s recent performance was hampered by high interest rates and housing market uncertainty in the UK.

The London-based franchisor of real estate agencies reported a 15% decline in pretax profit to £2.2 million in 2023 from £2.5 million in 2022.

However, revenue remained largely unchanged at £9.3 million, and the company increased its dividend by 6.4% to 11.70 pence per share from 11.00p.

Chief Executive Officer Dominic Agace said: ‘Successive interest rate rises in 2023 brought considerable uncertainty to the sales market, with expectations as to when the tightening cycle might end fluctuating over the course of year. This led to a significant reduction in transactions.

He added: ’2024 has had a stronger start than expected, with our sales agreed to the end of March 23% ahead of the same period in 2023, bolstered by mortgage providers reducing rates in anticipation of a rate cutting programme by the Bank of England.‘

So far this year Winkworth has opened three new offices and the company may open or relaunch eight additional franchisees in London over the next 18 months.

Looking ahead, the company anticipates a return to more normal economic conditions although believes house prices will remain broadly flat.

However, new interest from those held back over the past 18 months is expected to give rise to an increase in transactions throughout the year.

M Winkworth shares were up 8.9% to 177.00 pence each in London on Wednesday morning.

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