Winkworth H1 Revenue Falls 10% to £4.7 Million as Exceptional Costs Weigh on Full-Year Outlook

Winkworth (LSE:WINK) reported a 10% decline in company revenue to £4.7 million for the six months ended 30 June 2026, while operating profit before exceptional costs increased 9%. The estate agency franchisor also warned that exceptional legal and advisory expenses are expected to leave full-year reported profit before tax materially below market expectations.

Network revenue declined 1% to £31.6 million, reflecting a 5% reduction in property sales revenue, partly offset by a 3% increase in lettings and management revenue. The results reflected a greater contribution from rental activities amid uneven conditions in the UK property market.

The company attributed the decline in its own revenue primarily to the winding down of its Development and Commercial Investment division and the deconsolidation of its Crystal Palace office.

Cash generation improved during the period, with Winkworth reporting a cash balance of £3.73 million and no debt at the end of June.

Trading varied across the network, with central London and country markets contributing to performance. Management cited interest rate uncertainty and geopolitical tensions as factors affecting property market conditions.

Winkworth also reported that franchisees had adapted to changes associated with the Renters’ Rights Act. The company said its London sales market share had increased in recent years.

Network expansion continued during the first half, with four new offices added. Assisted acquisitions also supported the establishment of a new regional hub, while the company maintained investment in technology and artificial intelligence.

Despite the increase in operating profit before exceptional costs, Winkworth expects legal and advisory expenses to reduce reported full-year profit before tax materially below market forecasts.

The company operates a network of 104 offices across the UK, focusing on residential property sales, lettings and management. Its franchise model is supplemented by selectively owned offices and an assisted acquisition programme designed to support franchisee expansion.