M Winkworth

27 July 2025
By Maynard Paton

FY 2024 results summary for M Winkworth (WINK):

• Sales transactions rebounding 17% involving property worth £3.4b helped ensure a positive FY, with franchise-network income up 12%, revenue up 17%, underlying profit up 24% and the dividend up 5%. 

• Assisted by branch resales to “best-in-class” agents, the “vast majority” of London branches now boast WINK’s necessary top-three local position. The average commission income from all branches meanwhile reached a new £628k high.

• A potential “shrinkage in rentals” due to new legislation could create a greater dependency on sales transactions and differentiate WINK from resurgent rival Foxtons, which plans to strengthen its leading market share by spending £15m a year acquiring further lettings agencies.

• Despite minimal profits from company-owned offices, the FY margin was a respectable 21% following commendable control of employee — and director! — pay. Greater loans to franchisees meanwhile reduced net cash to £4m, equivalent to a sizeable 38% of FY revenue. 

• Post-FY statements signalling FY 2025 profit advancing 10% and dividends up at least 7% support a 6%-plus yield and possible dividend cover of only 1.14x, all of which re-emphasises the board’s preference for income. I continue to hold.

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15 April 2025
By Maynard Paton

H1 2024 results summary for M Winkworth (WINK):

• Greater “sales agreed” activity alongside a one-off £350k fee supported an improved H1, with franchise-network income up 6%, revenue up 20%, profit up 24% and the dividend up 3%. 

• The targeting of “good profitability” at all four company-owned offices for FY 2025 is very encouraging, especially as three of the offices reported losses during FY 2023 and the returns from the fourth have been superb once a profit was achieved.

• Although four branches were re-franchised to new agents and a further seven look set to follow, WINK’s franchise network continues to lose ground to rival Foxtons as progress seemingly becomes more dependent on higher sales values and rising property rents.

• Dividend cover around 1.1x and net cash equivalent to a sizeable 41% of trailing twelve-month revenue continue to emphasise the board’s preference for income and the cautious approach to franchise-network expansion. 

• Post-H1 statements indicating a promising H2 2024 and a possible bumper Q1 2025 support a 6%-plus dividend yield, accompanied perhaps by vague bid potential following last year’s appointments of two M&A non-execs. I continue to hold.

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29 July 2024
By Maynard Paton

FY 2023 results summary for M Winkworth (WINK):

• Only the dividend advanced higher (+6%) as a suppressed property market alongside greater costs left franchise-network income 8% lower, revenue unchanged and profit down 25%.

• Requiring every franchisee to be a “top three contender” prompted nine branch closures but underpinned industry-leading sales, lettings and conversion statistics versus (now anonymous) rival agents.

• Company-owned offices now include Pimlico and collectively reported a £0.48m profit, although divisional progress remains dominated by Tooting — the exit strategy for which is unclear.

• After reporting a lower margin, adverse cash conversion and weaker employee productivity, a post-FY update heralded a stronger FY 2024 that supports a possible 12-14x P/E and near-6% yield.

• Celebrations marking the chairman’s 50-year tenure invite bid speculation, especially following the appointment of two non-execs with M&A backgrounds and sector merger activity involving Property Franchise and Belvoir. I continue to hold.

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31 March 2024
By Maynard Paton

H1 2023 results summary for M Winkworth (WINK):

• Only the dividend advanced higher (+7%) after a “more challenging” property market alongside greater costs caused franchisee network income to decline 5%, revenue to remain flat and profit to drop 26%. 

• WINK’s franchisees continue to report greater SSTCs and exchanges versus other agents, with sales commissions improving to an estimated £5.4k per transaction and “new blood” being sought to 3-4x franchise revenue at certain London branches. 

• A third company-owned office seems on the horizon, although the departure of WINK’s successful Tooting manager plus unclear financial progress at Crystal Palace do raise questions about the in-house approach.  

• A lower margin and adverse cash generation reflected this H1’s reduced sales activity, but a post-H1 update indicated a stronger H2 2023 that ought to include greater returns from franchisee loans. 

• Projected earnings of c12p per share may limit increases to the 11.7p per share dividend, although net cash of £4m alongside owner-directors committed to a “progressive” payout should sustain the 6.9% yield. I continue to hold.

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21 July 2023
By Maynard Paton

FY 2022 results summary for M Winkworth (WINK):

• An acceptable FY performance that revealed ordinary dividends up 18% and remarkably took FY franchisee income close to the £64.8m exceptional level of FY 2021.

• A subsequent trading update rather overshadowed the figures by admitting a “more challenging” housing market had “delayed” agreed sales and in turn caused current-year profit to run below expectations.

• The “uncertain economic outlook“‘ had already reduced the proportion of franchisee commissions converted into revenue to 10% — WINK’s lowest percentage since at least 2009.  

• Healthy rental commissions, favourable competitor comparisons, resilient company-owned branches and cash-flush accounts suggest WINK should be well prepared for any house-price downturn. 

• Possible earnings around 12p per share may limit advances to the 11.4p per share trailing dividend, although net cash of £5m plus owner-directors who “prioritise” income should sustain the 7.6% yield. I continue to hold.

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04 November 2022
By Maynard Paton

Results summary for M Winkworth (WINK):

• An acceptable H1 performance that would always struggle against the comparable (and exceptional) H1 but encouragingly matched the preceding H2.

• The subsequent Q3 update provided reassuring ‘mini-budget’ commentary, reiterated an earlier £2.1m profit forecast and announced a further 23% quarterly dividend lift.

• Claims of a leading SSTC market share may contradict statistics from Foxtons, with fresh leadership at the London rival set to create stiffer competition. 

• A robust 25% margin plus £4m net cash left the accounts in good order, although cash conversion was impacted by rising intangible expenditure and more franchisee loans.

• The gloomy outlook for the economy and housing market looks responsible for the possible 10-13x P/E and yield that approaches 7%. I continue to hold.

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08 July 2022
By Maynard Paton

Results summary for M Winkworth (WINK):

• “Extraordinary levels of activity” due to pandemic stamp-duty reductions ensured an outstanding FY 2021 with underlying profit up 167%.

• Talk of sales income again exceeding lettings income plus lifting the Q1 2022 dividend by 23% underpinned a promising FY 2022.  

• Earnings at the company-owned Tooting office may have slumped during the year, although the effective return on the branch’s valuation remains impressive.  

• A super 34% margin, net cash at more than 20% of the share price and trade receivables at just 7% of revenue leave the accounts in good order.

• A possible 9-12x P/E and 6% yield match WINK’s past rating as investors presumably worry about potential problems within the housing market. I continue to hold.

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13 January 2022
By Maynard Paton

Results summary for M Winkworth (WINK):

• An “extraordinarily active” sales market led to an exceptional six-month performance, with the H1 £2m profit exceeding WINK’s peak annual profit from FY 2014.

• Subsequent trading updates then lifted FY 2021 expectations and announced a record quarterly dividend alongside the third special payout of the year.

• Market-share gains versus London rival Foxtons plus very encouraging progress at the company-owned Tooting office underpin the prospect of a “busy” FY 2022. 

• The accounts remain in good order, with this H1 showing a super 38% margin and net cash and investments supporting close to 20% of the share price.

• Near-term earnings may well subside if housing activity cools, but WINK’s reliable dividends may limit the downside with a possible 5% income. I continue to hold.

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30 April 2021
By Maynard Paton

Results summary for M Winkworth (WINK):

• A revitalised property market led to a much stronger H2, with management optimism underlined by a record dividend for Q1 2021.

• Impressive market-share gains continue to be won from London rival Foxtons.

• Early contributions from in-house branches are encouraging, with implied returns on investment of 38%.

• The accounts remain in good order with net cash, respectable margins, positive cash flow and satisfactory returns on equity.

• A possible P/E of 11-14 and a potential 5% income may offer upside should buoyant trading convert into much higher earnings. I continue to hold.

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11 September 2020
By Maynard Paton

Results summary for M Winkworth (WINK):

• A very acceptable lockdown performance, with underlying half-year revenue down 17% and profit down 20%.

• Temporary stamp-duty changes have supported a “significant uplift in activity” and ought to herald a much stronger second half.

• Extremely impressive market-share gains continue to be won from London rival Foxtons.

• Despite a number of accounting re-jigs, the books remain in good shape with respectable margins and net cash.

• A possible P/E of 11-14 and potential income of at least 4% may offer upside should earnings one day regain their momentum. I continue to hold.

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