M Winkworth (WINK) H1 2026 earnings summary

Executive summary

• H1 2026 performance broadly met management expectations, with underlying profit before tax (PBT) expected slightly ahead, but reported PBT materially below market expectations due to exceptional legal and advisory costs.

• Sales performance was strong compared to H1 2025, despite last year's artificial surge from stamp duty changes, and lettings revenue continued to grow, demonstrating network strength and adaptability.

• Largest assisted acquisition to date completed, supporting network expansion and creating a new hub in the Cotswolds.

• Equity-owned offices consolidated, with the closure of the Development & Commercial Investment (DCI) business and sale of Crystal Palace office.

• Dividend per share maintained at 6.6p.

Financial highlights

• Network revenue for H1 2026 was £31.6m, down 1% year-over-year; sales revenue fell 5% to £16.1m, while lettings revenue rose 3% to £15.5m.

• Company revenue was £4.7m, down 10% year-over-year, impacted by the sale of Crystal Palace and DCI wind-down.

• Operating profit before exceptional items rose 9% to £0.84m; reported PBT fell 5% to £0.78m due to exceptional legal fees.

• Cash at half-year was £3.73m, with net cash from operating activities up 39% year-over-year.

• Basic earnings per share were 4.45p, down from 4.77p in H1 2025.

Outlook and guidance

• Underlying FY 2026 PBT expected to be slightly ahead of prior guidance, but reported PBT will be materially lower due to ongoing legal and advisory costs.

• Sales transactions in London for 2026 expected to be slightly below 2025, with overall UK transactions forecasted to be 4% down.

• Continued investment in digital platforms, AI-driven initiatives, and recruitment of new talent to drive future growth.

• Dividend policy remains prudent, with future payments dependent on trading, cash requirements, investment opportunities, and legal costs.

• Board expects property prices to remain static for the next six months, with potential for small increases if mortgage rates fall.