Listed estate agency group sees profits fall amidst ‘challenging’ market
Pre-tax profits dropped 6% at York-headquartered estate agency group Hunters Property, which has today released its interim results for the six months ending 30 June 2019.
The business said it was pleased with its “robust” half year results, despite pre-tax profits falling from £263,000 last year to £246,000, and latest revenue at £6.6m compared to £6.7m in 2018.
And the franchised sales and lettings agency businesses also reported network income up was up 7% to £19.2m (six months to June 2018: £17.9m) while adjusted operating profit was up 30% to £1.1m (2018: £0.85m).
The company added that it had expanded its branch network to 200 and invested significantly in software capability.
Eight new branches converted to the group over the six month period, at an average network income per branch of £425,000, compared to £186,000 for the whole of 2018.
Hunters Property’s outlook statement concludes: “The Board remains confident the second half will outperform the first six months despite the impact of the Tenant Fee Ban – which at £0.3m remains broadly in line with the Board’s expectations – and against sales listings for the market as a whole reporting a 7% decline this period.”
“Independent businesses continue to join the Hunters network to mitigate the current uncertainty and challenging economic backdrop.”
Glynis Frew, Chief Executive of Hunters Property, said: “We have delivered a good set of results in the first six months.
“The market has been held back by the wider economic uncertainty and the tenant fee ban. However, we continue to roll out our mitigation strategy as regards the ban which is well underway and is on plan.
“We offer a very attractive solution to suitable, independent businesses who see the advantages of joining the Hunters network. In fact, we are experiencing increasingly strong businesses seeing that benefit.
“We are investing in our software to advance our strategy to grow and develop the franchise system, having recruited a COO with fifteen years’ experience in the industry as well as being bolstered by the support of our network in embracing that change.”
Chairman Kevin Hollinrake said: “In this period the Group added another eight branches to the network making a total of 132 in the last five and a half years.
“Given the market challenges it is very encouraging that our strategies have been able to mitigate against the tenant fee ban and that good quality independent businesses are increasingly seeing the benefit of joining the Hunters network. I am pleased to report that we remain in line with expectations.
“We are delighted with these results and we’re looking this year to increase our level of branch conversions.”
