Half Year 2026 M Winkworth PLC Earnings Call
Operator 2: Good morning, and welcome to the M Winkworth PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to Dominic Agace, CEO. Good morning to you.
Operator: Good morning, and welcome to the M Winkworth PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to Dominic Agace, CEO. Good morning to you.
Speaker #1: Questions are encouraged, and they can be submitted at any time using the Q&A tab situated in the right-hand corner of your screen. Simply type in your questions and press send.
Speaker #1: Before we begin, I would like to submit the following poll, and I'd now like to hand you over to Dominic A. Gace, CEO. Good morning to you.
Speaker #2: Good morning, everyone. It's a pleasure to be here to present our H1 2026 results. I'm Dominic A. Gace, CEO of Winkworth, and this is Andrew Nickel, CFO.
Dominic Agace: Good morning, everyone. It is a pleasure to be here to present our H1 2026 results. I am Dominic Agace, CEO of Winkworth, and this is Andrew Nicol, CFO. Good morning, everyone. It will be our pleasure to go through the slides now. Well, we start with this slide for those who do not know us, just to give a bit of background on the company, and where we have come from as to where we are today, and the model itself. Winkworth was established over 190 years ago, in 1835. It came to franchising in 1981, which was the first estate agency in the UK to franchise, starting in Central London and franchising out from there, which has given us today 105 offices in total, 102 franchise offices and 69 in London.
Dominic Agace: Good morning, everyone. It is a pleasure to be here to present our H1 2026 results. I am Dominic Agace, CEO of Winkworth, and this is Andrew Nicol, CFO.
Andrew Nicol: Good morning, everyone.
Dominic Agace: It will be our pleasure to go through the slides now. Well, we start with this slide for those who do not know us, just to give a bit of background on the company, and where we have come from as to where we are today, and the model itself. Winkworth was established over 190 years ago, in 1835. It came to franchising in 1981, which was the first estate agency in the UK to franchise, starting in Central London and franchising out from there, which has given us today 105 offices in total, 102 franchise offices and 69 in London. London being, I suppose, the heartland from which we have grown and very much a USP versus other franchise organizations or real estate businesses that do not have that established network across London.
Speaker #2: We are pleased to go through the slides now. Let me start with this slide for those that don't know. Let's just give a bit of background on the company.
Speaker #2: And where we've come from to where we are today. So, and the model itself—Winkworth was established over 190 years ago, in 1835.
Speaker #2: It came to franchising in 1981, which was the first estate agency in the UK to franchise, starting in central London and franchising out from there.
Speaker #2: Which has given us today 105 offices in total, 102 franchise offices, and 65 in London. London being, I suppose, the heartland from which we've grown, and very much a sort of USP versus other franchise organisations or real estate businesses that don't have that established network across London.
Dominic Agace: London being, I suppose, the heartland from which we have grown and very much a USP versus other franchise organizations or real estate businesses that do not have that established network across London. The model effectively is to provide a platform for an independent business, independent estate agency to operate under our name and compete in the top three in their local marketplace. We like to think of it as that they may have been working for a wholly owned business, and they can come and set up their own business and take control of their destiny within our manuals and rules of the road, and have everything at the end of the phone that they are used to having as an employee. Hopefully for that enables them to compete better than they could do on their own.
Speaker #2: The model, effectively, is to provide a platform for an independent business—independent state agency—to operate under our name and compete in the top three in their local marketplace.
Dominic Agace: The model effectively is to provide a platform for an independent business, independent estate agency to operate under our name and compete in the top three in their local marketplace. We like to think of it as that they may have been working for a wholly owned business, and they can come and set up their own business and take control of their destiny within our manuals and rules of the road, and have everything at the end of the phone that they are used to having as an employee. Hopefully for that enables them to compete better than they could do on their own. For that, basically, it is 8% royalty fee of gross revenues. There are some additional fees, which if you put them all together in relation to training and websites, put those together, then wrapped it around, just shy of 11 pence of the average office.
Speaker #2: So, we'd like to think of it as that they may have been working for a wholly owned business, and they can come and set up their own business and take control of their destiny within our sort of manuals and rules of the road.
Speaker #2: And have everything at the end of the stone that they're used to having as an employee, and hopefully for that, that enables them to compete better than they could do on their own.
Speaker #2: So for that, we've, sort of, basically it's an 8% royalty fee of gross revenues. There are some additional fees, which, if you sort of put them all together in relation to, sort of, training and website, and, yeah, training, website.
Dominic Agace: For that, basically, it is 8% royalty fee of gross revenues. There are some additional fees, which if you put them all together in relation to training and websites, put those together, then wrapped it around, just shy of 11 pence of the average office. The local franchisee takes the lease in their own name, and we take options on those premises should we need to step in. We have a very light fixed cost model. We bill centrally so that all the sales contracts are paid to us, and then we distribute, having deducted our franchise fee, which obviously is very good for our cash flow. Yes, that is a little bit about us as a background. With that, we will go into the presentation. This starts with an operational overview. H1 2026 trades broadly in line with management expectations.
Speaker #2: Put those together, then it represents just a shade under 11 cents of the average office. The offices that local franchisees take, the lease is in their own name, and we take options on those premises should we need to step in.
Dominic Agace: The local franchisee takes the lease in their own name, and we take options on those premises should we need to step in. We have a very light fixed cost model. We bill centrally so that all the sales contracts are paid to us, and then we distribute, having deducted our franchise fee, which obviously is very good for our cash flow. Yes, that is a little bit about us as a background. With that, we will go into the presentation. This starts with an operational overview. H1 2026 trades broadly in line with management expectations. The underlying 2026 PBT threats to be slightly ahead, but reported PBT for full year materially below market expectation due to ongoing legal and advisory costs.
Speaker #2: So we have a very light fixed cost model and we bill centrally so that the all the sales contracts are paid to us and then we distribute having deducted our franchise fee which is obviously sort of of very good for our cash flow.
Speaker #2: So yes, that's a little bit about us as background. And so with that, we'll sort of go into the presentation. Let's start with the operational overview.
Speaker #2: H1 2026 traded broadly in line with management expectations. The underlying 2026 PBT is expected to be slightly ahead. However, reported PBT for the full year is materially below market expectations due to ongoing legal and advisory costs.
Dominic Agace: The underlying 2026 PBT threats to be slightly ahead, but reported PBT for full year materially below market expectation due to ongoing legal and advisory costs. We had a good sales performance, though, when compared to 2025 and H1 2026. Last year in the H1, we obviously had stamp duty changing, which created another artificial surge of activity. To be so close to it in terms of sales performance was actually a fantastic result in the H1 of 2026.
Speaker #2: We had a good sales performance there when compared to 2025 and H1 2026. Last year, in the first half, we obviously had stamp duty changing, which kind of created another artificial surge of activity.
Dominic Agace: We had a good sales performance, though, when compared to 2025 and H1 2026. Last year in the H1, we obviously had stamp duty changing, which created another artificial surge of activity. To be so close to it in terms of sales performance was actually a fantastic result in the H1 of 2026. We continued to grow lettings, which in the face of changing legislation in that market in terms of the Renters' Rights Act, which came in in May, is a fantastic achievement as well and shows the strength of the network in terms of the advising they are giving their clients and the landlords they are managing to retain and convert to property management, as well as acquire new ones.
Speaker #2: And so to be so close to it in terms of sales performance was actually a fantastic result in the first half of 2026. We continue to grow lettings, which, in the face of changing legislation in that market—in terms of the Renter's Right Act, which came on in May—is a fantastic achievement as well and shows the strength and network in terms of the advising they're giving their clients and the landlords that they're managing to retain and convert to property management, as well as acquire new ones.
Dominic Agace: We continued to grow lettings, which in the face of changing legislation in that market in terms of the Renters' Rights Act, which came in in May, is a fantastic achievement as well and shows the strength of the network in terms of the advising they are giving their clients and the landlords they are managing to retain and convert to property management, as well as acquire new ones. We supported a franchisee to acquire four new offices, which is our largest assisted acquisition to date. It is in the Cotswolds, North Cotswolds, Warwickshire area, and it created a whole new hub for us, really. Alongside the others we have talked about previously, this is a new point of growth with a really good operator we supported and some really good talent he has brought into the business. We consolidated our ex-company-owned offices businesses. We closed down the development commercial investments business.
Speaker #2: We'd supported a franchisee to acquire four new offices, which is our largest assisted acquisition to date. It's in the sort of Notting Hill world's area.
Dominic Agace: We supported a franchisee to acquire four new offices, which is our largest assisted acquisition to date. It is in the Cotswolds, North Cotswolds, Warwickshire area, and it created a whole new hub for us, really. Alongside the others we have talked about previously, this is a new point of growth with a really good operator we supported and some really good talent he has brought into the business. We consolidated our ex-company-owned offices businesses. We closed down the development commercial investments business. Really, we felt that there was risk attached to it. It was profitable last year, but risk in this market without the recurring revenue underneath it, and perhaps therefore was not suitable for us at this time to be involved in.
Speaker #2: So, Cotswolds, Knotts Worlds, Warwickshire area, and it created a whole new hub for us. Really, it's sort of alongside the others we've talked about previously. This is a new point of growth, with some really good operating support and some really good talent he's brought into the business.
Speaker #2: We consolidated our equity-owned offices businesses, and we sort of closed down the development commercial investments business. Really, we felt that there’s risk attached to it. It was profitable last year, but there’s risk in this market without the sort of recurring revenue underneath it.
Dominic Agace: Really, we felt that there was risk attached to it. It was profitable last year, but risk in this market without the recurring revenue underneath it, and perhaps therefore was not suitable for us at this time to be involved in. The Winkworth Crystal Palace we sold on to a neighboring franchisee, which fits well with the geography and adds to his own network. Profits, we said, were impacted by exceptional legal costs relating to the board and shareholder matters. The board is in the process of resolving that. We are considering ways to strengthen the board and the company's wider governance to come out fitter and stronger from it all. Then finally, really, to say we retain the position of having no debt. We are highly cash generative, with cash generated from operating activities up 39% in the H1 versus the H1 last year.
Speaker #2: And perhaps, therefore, it wasn't suitable for us at this time to be involved in. The Crystal Palace, we sold on to a neighbouring franchisee, which fits well with the geography and adds to his own network.
Dominic Agace: The Winkworth Crystal Palace we sold on to a neighboring franchisee, which fits well with the geography and adds to his own network. Profits, we said, were impacted by exceptional legal costs relating to the board and shareholder matters. The board is in the process of resolving that. We are considering ways to strengthen the board and the company's wider governance to come out fitter and stronger from it all. Then finally, really, to say we retain the position of having no debt. We are highly cash generative, with cash generated from operating activities up 39% in the H1 versus the H1 last year.
Speaker #2: Profits, we said, were impacted by exceptional legal costs relating to the board and shareholder matters. The board is in the process of resolving that.
Speaker #2: We are considering ways to strengthen the board and the company's wider governance, to come out a bit stronger from it all. And then finally, really, is to say we retain the position of having no debt.
Speaker #2: We're highly cash generative, with cash generated from operating activities up 39% in the first half versus the first half last year.
Speaker #3: In terms of the actual numbers themselves, network revenue was £31.6 million, which was down 1% on H1 2025. Within that, I've gone a little too early.
Andrew Nicol: In terms of the actual numbers themselves, network revenue was GBP 31.6 million, was down 1% on H1 2025. Within that, as Dom alluded to earlier, network sales revenue at GBP 16.1 million was 5% down on the same period last year, and lettings revenue at GBP 15.5 million was 3% up than the previous year. The lettings sales split had gone from 53 sales, 47 lettings in 2025 on the back of the stamp duty surge that Dominic alluded to 51/49. In terms of Winkworth's actual revenue, Dom alluded to the sale of Crystal Palace and the deconsolidation of the development and commercial business. Winkworth revenue was down to GBP 4.7 million, 10% down on the last year. I will be providing a bit more detail on that on a subsequent slide.
Andrew Nicol: In terms of the actual numbers themselves, network revenue was GBP 31.6 million, was down 1% on H1 2025. Within that, as Dom alluded to earlier, network sales revenue at GBP 16.1 million was 5% down on the same period last year, and lettings revenue at GBP 15.5 million was 3% up than the previous year. The lettings sales split had gone from 53 sales, 47 lettings in 2025 on the back of the stamp duty surge that Dominic alluded to 51/49. In terms of Winkworth's actual revenue, Dom alluded to the sale of Crystal Palace and the deconsolidation of the development and commercial business. Winkworth revenue was down to GBP 4.7 million, 10% down on the last year. I will be providing a bit more detail on that on a subsequent slide.
Speaker #3: Network sales revenue at £16.1 million was 5% down on the same period last year. Lettings revenue, at £15.5 million, was 3% up on the previous year.
Speaker #3: And the lettings and sales split had gone from 53% sales, 47% lettings in 2025 on the back of the stamp duty surge that Dominic alluded to, to 51:49.
Speaker #3: In terms of Winkworth's actual revenue, Dom alluded to the sale of Crystal Palace and the deconsolidation of the Torbay and commercial business. So Winkworth revenue was down to £4.7 million.
Speaker #3: 10% down on last year. There is arguably a bit more detail to provide on that and on the subsequent side. Operating profit before exceptional items, as the trading element of the business, was 9% up at £0.84 million versus last year.
Andrew Nicol: Operating profit before exceptional items, the trading element of the business, was 9% up at GBP 0.84 million versus last year. But with the exceptional items, profit before tax was down 5% at GBP 0.78 million. The sale of Crystal Palace and wind down of DCI had an impact on the owned offices, so their revenue was down 30% and they were roughly break even, a loss of about 10K at the half year. Cash was at GBP 3.73 million at the half year, and ordinary dividends declared were 6.6p in the period. To give a bit more flavor, as I said, about the impact of the sale of Crystal Palace and the wind down of our development and commercial business, these charts are designed to give a bit of a flavor around that.
Andrew Nicol: Operating profit before exceptional items, the trading element of the business, was 9% up at GBP 0.84 million versus last year. But with the exceptional items, profit before tax was down 5% at GBP 0.78 million. The sale of Crystal Palace and wind down of DCI had an impact on the owned offices, so their revenue was down 30% and they were roughly break even, a loss of about 10K at the half year. Cash was at GBP 3.73 million at the half year, and ordinary dividends declared were 6.6p in the period. To give a bit more flavor, as I said, about the impact of the sale of Crystal Palace and the wind down of our development and commercial business, these charts are designed to give a bit of a flavor around that.
Speaker #3: But with the exceptional items, profit before tax was down 5% at £0.78 million. The sale of Crystal Palace and the wind-down of DCI had an impact on the owned offices.
Speaker #3: So, their revenue was down 30%, and they were roughly break-even, with a loss of about £10,000 at the half year. Cash was at £3.73 million.
Speaker #3: At the half-year, ordinary dividends declared were 6.6p in the period. To give a bit more flavour, as I said, about the impact of the sale of Crystal Palace.
Speaker #3: And the wind down of development and commercial business. This chart these charts are designed to give a bit of flavour around that. So the left hand blocks are the position as at H1 2025.
Andrew Nicol: The left-hand blocks are the position as at H1 2025, and the blocks moving across show the movements to get to H1 2026. On the revenue side, even though the 8% revenue from sales and lets was down slightly, 50K or so down on H1 2025, overall revenue was up. We had some small increases on our ancillary fees. We made more money from our CSD business in the first half, and the deconsolidation of Crystal Palace meant that 47K of revenue, which would have been excluded in previous years, actually registered as revenue for this year. That is why that is up a wee bit. Pimlico was up 26% revenue, half year on half year. Tooting was up 14% half year on half year.
Andrew Nicol: The left-hand blocks are the position as at H1 2025, and the blocks moving across show the movements to get to H1 2026. On the revenue side, even though the 8% revenue from sales and lets was down slightly, 50K or so down on H1 2025, overall revenue was up. We had some small increases on our ancillary fees. We made more money from our CSD business in the first half, and the deconsolidation of Crystal Palace meant that 47K of revenue, which would have been excluded in previous years, actually registered as revenue for this year. That is why that is up a wee bit. Pimlico was up 26% revenue, half year on half year. Tooting was up 14% half year on half year.
Speaker #3: And the blocks moving across show the movements to get to H1 2026. So, on the revenue side, even though the 8% revenue from sales and lets was down slightly—£50k or so down on H1 2025.
Speaker #3: Overall, revenue was up. We had some small increases in ancillary fees. We made more money from our CSD business in the first half. And the deconsolidation of Crystal Palace meant that £47,000 of revenue, which would have been excluded in previous years, actually registered as revenue for this year.
Speaker #3: That's why that's up a wee bit. Bimliko was up 26% in revenue, half year on half year. Tooting was up 14%, half year on half year.
Speaker #3: And then the downs, the decreases, are the wind-down of DCI and the closure of Crystal Palace, getting us from the £5.2 million to £4.7 million.
Andrew Nicol: The downs, the decreases, are the wind down of DCI and the closure of Crystal Palace getting us from the 5.202 to 4.7 million. On the PBT side, the trading element of the franchising business was up by 111K year on year PBT, but basically driven by cost savings. We did not have the one-offs that we had had in H1 2025. There was no investment in prime central London marketing, which had been 100K this time last year, and we did not have an office move, which cost us 70K or so in the first half of last year. There were some cost savings and some small cost increases. The net effect was a significant profit uptick. Pimlico's profitability was up by 24K. Tooting was down slightly, basically on the back of the appointment of a high-performing sales director in the business and the timing difference around their sales pipeline.
Andrew Nicol: The downs, the decreases, are the wind down of DCI and the closure of Crystal Palace getting us from the 5.202 to 4.7 million. On the PBT side, the trading element of the franchising business was up by 111K year on year PBT, but basically driven by cost savings. We did not have the one-offs that we had had in H1 2025. There was no investment in prime central London marketing, which had been 100K this time last year, and we did not have an office move, which cost us 70K or so in the first half of last year. There were some cost savings and some small cost increases. The net effect was a significant profit uptick. Pimlico's profitability was up by 24K.
Speaker #3: On the PBT side, the trading element of the franchising business was up by £111k year on year. But it was basically driven by cost savings.
Speaker #3: We didn't have the one-offs that we'd had in H1 2025, so there was no investment in prime central London marketing, which had been £100,000 this time last year.
Speaker #3: And we didn't have an office move, which cost us £70K or so in the first half of last year. There were some cost savings and some small cost increases.
Speaker #3: The net effect was a significant profit uptick. Bimliko's profitability was up by £24,000. Tooting was down slightly, basically on the back of the appointment of a high-performing sales director in the business.
Andrew Nicol: Tooting was down slightly, basically on the back of the appointment of a high-performing sales director in the business and the timing difference around their sales pipeline. The start of Q3, slightly frustratingly, has been phenomenally strong. It would have been good if that had started a month earlier, but hey, we are where we are. DCI was down year on year as we went through the final knockings of the pipeline. Winkworth Crystal Palace is up because it actually lost money at the half year last year. The major element down on the far right is the exceptional legal fees of GBP 105K. I am afraid we cannot talk much about that.
Speaker #3: And the timing difference around their sales pipeline. So the start of Q3, slightly frustratingly, has been phenomenally strong. It would have been good if that had started a month earlier.
Andrew Nicol: The start of Q3, slightly frustratingly, has been phenomenally strong. It would have been good if that had started a month earlier, but hey, we are where we are. DCI was down year on year as we went through the final knockings of the pipeline. Winkworth Crystal Palace is up because it actually lost money at the half year last year. The major element down on the far right is the exceptional legal fees of GBP 105K. I am afraid we cannot talk much about that.
Speaker #3: But hey, we are where we are. DCI was the final knockings of the pipeline. Crystal Palace is up because it actually lost money at the half year last year. The major element down on the far right is the exceptional legal fees of £105K. I'm afraid we can't talk much about that.
Speaker #2: On the upside, just to give you a flavour of the networks and movers and shakers, the different elements of the business and how they performed in the first half.
Dominic Agace: Just to give you a flavor of the network, some movers and shakers, the different elements of the business and how they performed in the H1. I suppose in part this shows the mix of Winkworth and all the different sort of areas and revenue streams and how they move to kind of create a nice revenue that is supported by diverse income streams. When you look at this, I suppose some of it, I think sales is against the stamp duty, and clearly central London is less affected. We have also seen a benefit from our investment in central London, where larger deals helped support revenue growth in H1. That has been positive. It is still a difficult market, but it has made a difference. Country markets we are growing in, so it is not still. That slightly offsets general market trends.
Dominic Agace: Just to give you a flavor of the network, some movers and shakers, the different elements of the business and how they performed in the H1. I suppose in part this shows the mix of Winkworth and all the different sort of areas and revenue streams and how they move to kind of create a nice revenue that is supported by diverse income streams. When you look at this, I suppose some of it, I think sales is against the stamp duty, and clearly central London is less affected. We have also seen a benefit from our investment in central London, where larger deals helped support revenue growth in H1. That has been positive. It is still a difficult market, but it has made a difference. Country markets we are growing in, so it is not still. That slightly offsets general market trends.
Speaker #2: I suppose part of this shows the mix of Winkworth and all the different sorts of areas and revenue streams, and how they move to create a nice revenue that's supported by diverse income streams.
Speaker #2: When you look at this, I suppose some of it—sales—is against the stamp duty, and clearly Central is less affected. But we've also seen a benefit from our investment in Central London, where larger deals helped support revenue growth in H1.
Speaker #2: So, that's been positive. It's still a difficult market, but it has made a difference. And country markets, you know, we're growing in, so it's not still that. Slightly offset general market trend and out of London, where we're very mature, with well-established, high market share businesses.
Dominic Agace: Out of London, where we are very mature with well-established high market share businesses, was more affected by the sort of different incentives that, well, the change in incentives, I should say, that stamp duty change last year created. On the letting side of things, you can see this, again, it is a very changed country where we are growing, so it was the highest increase of revenue. It is also a slightly different market for us where there is more growth in buy-to-let landlords still because the economics are sort of different because the value of property is cheaper and therefore the business case for landlords stacks up to a greater degree. Both of those things were coming together to ensure greater growth in that part of the business. Out of London continues to perform very strongly. They are close to their landlords.
Dominic Agace: Out of London, where we are very mature with well-established high market share businesses, was more affected by the sort of different incentives that, well, the change in incentives, I should say, that stamp duty change last year created. On the letting side of things, you can see this, again, it is a very changed country where we are growing, so it was the highest increase of revenue. It is also a slightly different market for us where there is more growth in buy-to-let landlords still because the economics are sort of different because the value of property is cheaper and therefore the business case for landlords stacks up to a greater degree. Both of those things were coming together to ensure greater growth in that part of the business. Out of London continues to perform very strongly. They are close to their landlords.
Speaker #2: It was more affected by the sort of different incentives—that is, the change in incentives, I should say—that the stamp duty change last year created.
Speaker #2: On the letting side of things, you can see that again, it's a bit of a change country where we're growing. So, you know, there's the highest increase of revenue.
Speaker #2: It is also a slightly different market for us, where there is more growth in bicycle landlords still, because the economics are sort of different. The value of property is cheaper and, therefore, the business case for landlords stacks up to a greater degree.
Speaker #2: So, both of those things were coming together to ensure greater growth in that part of the business. Out of London continues to perform very strongly.
Speaker #2: You know, they're close to their landlords. They are communicating; they're getting new business from supporting landlords, and other landlords are looking for advice through the change of the Renter's Rights Act, as well as, as you'll see below, offsetting lettings deductions.
Dominic Agace: They are communicating, they are getting new business from supporting our landlords and other landlords looking for advice through the change of the Renters' Rights Act, as well as you will see below, offsetting lettings reduction. So 2% down in lettings with increase of property management revenue, so 4% increase. What we are seeing is that with greater legislation, our franchisees are able to provide more advice, add greater value, and be able to charge for that to their clients. That is definitely playing out as we have discussed previously. Central London really slightly suffers from the malaise of the higher ticket lettings properties not being so popular at the moment, and so that has affected rentals income in central London.
Dominic Agace: They are communicating, they are getting new business from supporting our landlords and other landlords looking for advice through the change of the Renters' Rights Act, as well as you will see below, offsetting lettings reduction. So 2% down in lettings with increase of property management revenue, so 4% increase. What we are seeing is that with greater legislation, our franchisees are able to provide more advice, add greater value, and be able to charge for that to their clients. That is definitely playing out as we have discussed previously. Central London really slightly suffers from the malaise of the higher ticket lettings properties not being so popular at the moment, and so that has affected rentals income in central London.
Speaker #2: So, 3% down in lettings, with an increase of property management revenue of 4%. So what we're seeing is that, with greater legislation, our franchisees are able to provide more advice, add greater value, and be able to charge for that to their clients.
Speaker #2: So that is hopefully playing out as we've discussed previously. Central London release slightly suffers from the malaise of the higher-ticket lettings properties not being so popular at the moment.
Speaker #2: And so that has affected rental income in central London, as well as the fact that actually it's the one part of the business where the monthly charges were more upfront, and that had to change during the Renters' Rights Act. Therefore, there's a change in accounting for those offices for how they account for the lettings fees.
Dominic Agace: As well as the fact that actually it's one part of the business where the monthly charges were more up front and that had to change during the Renters' Rights Act, and therefore there's a change in accounting for those offices of how they account for letting fees. Turning further into the balance of the business, and again, this is a familiar slide, but we always put it up because it sort of shows the ebb and flow really, and one side picks up the slack from another, and that's the 50/50, well not quite 50/50 split that we spent many years getting to. Now it's providing very useful to ensure the business continues to be incredibly resilient. The offices are well fitted out to meet both requirements.
Dominic Agace: As well as the fact that actually it's one part of the business where the monthly charges were more up front and that had to change during the Renters' Rights Act, and therefore there's a change in accounting for those offices of how they account for letting fees. Turning further into the balance of the business, and again, this is a familiar slide, but we always put it up because it sort of shows the ebb and flow really, and one side picks up the slack from another, and that's the 50/50, well not quite 50/50 split that we spent many years getting to. Now it's providing very useful to ensure the business continues to be incredibly resilient. The offices are well fitted out to meet both requirements.
Speaker #2: Certainly, further into the balance of the business—and again, this is a familiar slide, but we always put it up to show you the ebb and flow.
Speaker #2: Really, and you know, one side picks up the slack from another, and that's the, you know, 50/50. It's not quite a 50/50 split that we spent many years getting to.
Speaker #2: And now it's proving very useful to ensure the business continues to be incredibly resilient, and, you know, offices are well fitted out to meet both requirements.
Speaker #2: You know, the sales and market's busy. They can act quickly and find quick value there, and equally in the lettings, they are underpinned by solid letting revenue.
Dominic Agace: The sales market's busy, they can act quickly and put value there and equally in the lettings and they are underpinned by solid lettings revenue. So that hopefully shows it's moved a bit by slightly weaker sales market, which is directly fed through to the division. Then the revenue by area, again, this is the distinct areas we look at as we feel they have different dynamics. So, yeah, often move at different times really. Clearly, we've been talking about central London growing its share for a while, and there are still reasons why that isn't. We are investing in areas like central London to ensure the quality of our business improves and therefore we're able to take advantage of uplifts. You can see the natural growth in the country where, as I say, we're sort of growing the network.
Dominic Agace: The sales market's busy, they can act quickly and put value there and equally in the lettings and they are underpinned by solid lettings revenue. So that hopefully shows it's moved a bit by slightly weaker sales market, which is directly fed through to the division. Then the revenue by area, again, this is the distinct areas we look at as we feel they have different dynamics. So, yeah, often move at different times really. Clearly, we've been talking about central London growing its share for a while, and there are still reasons why that isn't. We are investing in areas like central London to ensure the quality of our business improves and therefore we're able to take advantage of uplifts. You can see the natural growth in the country where, as I say, we're sort of growing the network.
Speaker #2: So that hopefully shows it's moved a bit, by a slightly weaker sales market, which is directly fed through to the division. And then the revenue by area—again, these are the distinct areas we look at, as we feel they have different dynamics and so can often move at different times, really.
Speaker #2: Clearly, we've been talking about central London growing its share for a while, and, you know, there are still reasons why that isn't happening. We are investing in areas like central London to ensure the quality of our business improves, and therefore we're able to take advantage of uplifts.
Speaker #2: And you can see the natural growth in the country where as I say we're sort of you know growing the network. So again this is really for sort of market sort of feedback and I think what you can see is sort of the lettings is easier sort of demand is improving I think you saw rental prices sort of overshoot and therefore demand drop buyers everyone stay put as long as possible to avoid having to move to new rental properties and therefore applicants dropped off.
Dominic Agace: So again, this is really for sort of market feedback. I think what you can see is sort of lettings is easier, demand is improving. I think you saw rental prices sort of overshoot, and therefore demand drop by as everyone stayed put as long as possible to avoid having to move to new rental properties and therefore applicants sort of dropped off. We're seeing that improve again. There is a shortening of supply, certainly in the face of the Renters' Rights Act as some landlords decided they didn't want to be part of the post-regulatory environment in the rental market. But you're seeing fairly solid business increases in rents again, and more shortening of supply, particularly in London. In the sales sector, I think this is a reflection of supply. We saw last year really a big kick-off of supplier properties to sell.
Dominic Agace: So again, this is really for sort of market feedback. I think what you can see is sort of lettings is easier, demand is improving. I think you saw rental prices sort of overshoot, and therefore demand drop by as everyone stayed put as long as possible to avoid having to move to new rental properties and therefore applicants sort of dropped off. We're seeing that improve again. There is a shortening of supply, certainly in the face of the Renters' Rights Act as some landlords decided they didn't want to be part of the post-regulatory environment in the rental market. But you're seeing fairly solid business increases in rents again, and more shortening of supply, particularly in London. In the sales sector, I think this is a reflection of supply. We saw last year really a big kick-off of supplier properties to sell.
Speaker #2: We're seeing that improve again. There is a shortening of supply, certainly in the face of the Renter's Rights Act, as some landlords decided they didn't want to be part of the post-regulatory environment in the rental market.
Speaker #2: But you're seeing, you know, fairly solid business increases in rent again and more shortening of supply, particularly in London. In the sales sector, you know, I think this is a reflection of supply.
Speaker #2: We saw last year a really sort of big kick on the supply of properties to sell and, you know, that I think is a reflection of increased costs over the years we've talked about, in terms of, you know, mortgage rates going up, VAT on school fees, costs going up for building houses—everything having gone up over a number of years.
Dominic Agace: That I think is a reflection of increased costs over the years. We talked about in terms of mortgage rates going up, VAT on school fees, costs going up for building houses. Everything having gone up over a number of years has meant that there's more movement as people readjust their lives to a different cost base in many cases. So I think the numbers reducing to sort of 6 and 5 per property is driven not really by, I mean, there was a drop in applicants of 3% or so, but really also an increase in supply. So I think that's feeding through to weaknesses in pricing.
Dominic Agace: That I think is a reflection of increased costs over the years. We talked about in terms of mortgage rates going up, VAT on school fees, costs going up for building houses. Everything having gone up over a number of years has meant that there's more movement as people readjust their lives to a different cost base in many cases. So I think the numbers reducing to sort of 6 and 5 per property is driven not really by, I mean, there was a drop in applicants of 3% or so, but really also an increase in supply. So I think that's feeding through to weaknesses in pricing.
Speaker #2: As mentioned there's more movement as people readjust their lives to a different cost base in many cases so I think the numbers reducing to sort of six and five per property is it's driven not really by I mean the drop in there was a drop in applicants of sort of three or so percent but really also an increase in supply.
Speaker #2: So I think that's feeding through to weakness in pricing. We've seen that central for a while, but we're still seeing that in the wider market, where, you know, there's lots to choose from for buyers, and therefore, whilst there is not huge stress because of the nature of the mortgage market and employment market, you are seeing a gentle decline in prices.
Dominic Agace: We have seen that central London for a while, but we are seeing that in the wider market, where there is a lot to choose from for a buyer and therefore whilst there is not huge stress because the nature of the mortgage market and employment market, you are seeing gentle decline in prices. The dividend was maintained for H1 2026. Future dividend decisions will be made prudently, taking account of trading the group's cash requirements, investment opportunities and clearly the costs arising from the ongoing matters. Just to reinforce, dividends are absolutely in our DNA. The drivers of growth, again, this is a familiar slide. As the four parts really as we see it, the new franchising element, it is very simple. Comes to us and open new locations or convert their existing estate agents to us.
Dominic Agace: We have seen that central London for a while, but we are seeing that in the wider market, where there is a lot to choose from for a buyer and therefore whilst there is not huge stress because the nature of the mortgage market and employment market, you are seeing gentle decline in prices. The dividend was maintained for H1 2026. Future dividend decisions will be made prudently, taking account of trading the group's cash requirements, investment opportunities and clearly the costs arising from the ongoing matters. Just to reinforce, dividends are absolutely in our DNA. The drivers of growth, again, this is a familiar slide. As the four parts really as we see it, the new franchising element, it is very simple. Comes to us and open new locations or convert their existing estate agents to us.
Speaker #1: The dividend was maintained for H1 2026. Future dividend decisions will be made prudently, taking account of trading, the group's cash requirements, investment opportunities, and clearly, the costs arising from the ongoing matters.
Speaker #1: Just to reinforce dividends are absolutely in our DNA it drives the growth again it's a familiar slide as the four parts really as we see it the new franchising element it's a very simple sort of comes to us and open new locations or convert those existing estate agents to us the assisted acquisition which is the sort of big story is the acquisition of the Peter Clark business in the Knott's Worlds that sort of largest to date portfolio management where we're trying to head hunt and collect the best talent in the industry to come and join Winkworth and deliver sort of internal network growth I think we haven't put it this time but we're talking a little bit about how that's affecting market share and own businesses which again we'll talk about in a little bit.
Dominic Agace: The assisted acquisition, which is the big story, is the acquisition of the Peter Clarke business in the North Cotswolds. That is the largest to date. Portfolio management, where we are trying to headhunt and collect the best talent in the industry to come and join Winkworth and deliver internal network growth. I think we have not got it this time, but we will talk a little bit about how that is affecting market share. Owned businesses, which again, we will talk about in a little bit. This is a consistent slide, and it shows the ebb and flow of the offices over a period of time. Some of this is, I suppose, positioning.
Dominic Agace: The assisted acquisition, which is the big story, is the acquisition of the Peter Clarke business in the North Cotswolds. That is the largest to date. Portfolio management, where we are trying to headhunt and collect the best talent in the industry to come and join Winkworth and deliver internal network growth. I think we have not got it this time, but we will talk a little bit about how that is affecting market share. Owned businesses, which again, we will talk about in a little bit. This is a consistent slide, and it shows the ebb and flow of the offices over a period of time. Some of this is, I suppose, positioning.
Speaker #1: This is a consistent slide and it shows the ebb and flow of the offices over a period of time and you know some of this is I suppose positioning our view really has always been that you know better to have a strong network and walk away from offices that maybe struggling and therefore of no benefit to the franchisee or ourselves for the strength for the reinforcement of a network and our proposition and our ability to evolve and invest in the newest things that need to be done to ensure we can compete in the top three so when you look at this year obviously we've seen the acquisitions assisted acquisition statistic new offices joining us sadly several closing particularly Dartmouth and Milford on Sea I saw there's a question and it's you know they are unfortunately been hit by they're very low volume areas I should say but you know they had their sort of buzzing time but clearly tax and agendas against taxation against second homes and local council tax changes have meant that the sort of holiday home market is very difficult and there's a big readjustment going on in these areas I think we're seeing that not only is the demand stopped but the different type of buyers say the buyers of the holiday homes in the center of these towns it's not the same as the local buyers so there's a big readjustment going on and so those offices sadly weren't viable.
Dominic Agace: Our view really has always been that better to have a strong network and walk away from offices that may be struggling and therefore of no benefit to the franchisee or ourselves for the strength, for the reinforcement of a network and our proposition and our ability to evolve and invest in the newest things that need to be done to ensure we can compete in the top three. When you look at this year, obviously you have seen the acquisitions, assisted acquisitions, some fantastic new offices joining us. Sadly, several closing in particular Dartmouth and Milford On Sea. I saw those questions in, and they are unfortunately being hit by, they are very low volume areas, I should say, but they had their buzzing time.
Dominic Agace: Our view really has always been that better to have a strong network and walk away from offices that may be struggling and therefore of no benefit to the franchisee or ourselves for the strength, for the reinforcement of a network and our proposition and our ability to evolve and invest in the newest things that need to be done to ensure we can compete in the top three. When you look at this year, obviously you have seen the acquisitions, assisted acquisitions, some fantastic new offices joining us. Sadly, several closing in particular Dartmouth and Milford On Sea. I saw those questions in, and they are unfortunately being hit by, they are very low volume areas, I should say, but they had their buzzing time.
Dominic Agace: Clearly, taxation against second homes and local council tax changes have meant that the holiday home market is very difficult, and there is a big readjustment going on in these areas. I think we are seeing that not only has the demand stopped, but the different type of buyers, so the buyers of the holiday homes in the center of these towns, it is not the same as a local buyer. There is a big readjustment going on, and so those offices sadly were not viable. Paddington was disappointing. Suffered from prime central London difficulties and a multi-site operator, which we let consolidate into these two other offices and service it. Now currently from neighboring offices, maintaining revenue. Going forward, I think we have six offices in the pipeline.
Dominic Agace: Clearly, taxation against second homes and local council tax changes have meant that the holiday home market is very difficult, and there is a big readjustment going on in these areas. I think we are seeing that not only has the demand stopped, but the different type of buyers, so the buyers of the holiday homes in the center of these towns, it is not the same as a local buyer. There is a big readjustment going on, and so those offices sadly were not viable. Paddington was disappointing. Suffered from prime central London difficulties and a multi-site operator, which we let consolidate into these two other offices and service it. Now currently from neighboring offices, maintaining revenue. Going forward, I think we have six offices in the pipeline.
Speaker #1: Publishing was disappointing, suffered from sort of Prime Central London difficulties, and a multi-site operator, which we let consolidate into these two other offices and service it now currently from neighboring offices, maintaining revenue. So, going forwards, I think because we have six offices in the pipeline—one new office, which is hopefully one of our regional hubs, who is going forward with another new office to add to his localized network—and then some resales and some good opportunities to resell some important offices to some new talent that we think will boost them significantly and therefore make our network stronger and grow our 8%.
Dominic Agace: One new office, which hopefully one of our regional hubs who is going forward with another new office to add to his localized network. Some resales and some good opportunities to resell some important offices to some new talent that we think will boost them significantly and therefore make our network stronger and grow our 8%. We started doing this as a series, and these are some of the stars around the network. Jamie and Kylie are our Norfolk network. They also have South Wales, but are predominantly Norfolk and are soon to be opening a new office. They are fantastic operators, ambitious, and are leading the charge for the Winkworth brand in the area and creating a fantastic reputation.
Dominic Agace: One new office, which hopefully one of our regional hubs who is going forward with another new office to add to his localized network. Some resales and some good opportunities to resell some important offices to some new talent that we think will boost them significantly and therefore make our network stronger and grow our 8%. We started doing this as a series, and these are some of the stars around the network. Jamie and Kylie are our Norfolk network. They also have South Wales, but are predominantly Norfolk and are soon to be opening a new office. They are fantastic operators, ambitious, and are leading the charge for the Winkworth brand in the area and creating a fantastic reputation.
Speaker #1: So instead of doing this as a sort of series and these are the some of the some of the stars around the network and Jamie and Kylie are really our Norfolk network they also have South World but predominantly North Norfolk and our soon to be opening a new office they are fantastic operators ambitious and are sort of leading the leading the charge with Winkworth brand in the area and creating a fantastic reputation I mean they opened in 2018 and have done that so it's 19 foreign and have done that since then with our sort of backing and foreign and Halden eating South Worlds the revenue last year was 1.9 million we continue to support people like Jamie and Kylie where they look to expand because we have our trust in them so owned offices yes a bit of change and I think we should have talked about a little bit up front we consolidated it they're less I suppose there's less exposure to them as a venture within our business we have Crystal Palace we sold on you know it was a situation where we were set to lose the office due to contracted dispute and so we took it on we put in good manager the manager didn't in the end wish to take it on himself so we sold it to a neighboring franchisee who sort of great operator has a number of offices and it slots in very neatly to his localized network so you know we kept the kept the revenue stream from the area actually boosted it many times over I think terms of 8% and now put it in a place where it continues to deliver that for the years to come developing commercial investments I said it's it's a very difficult market for that sector of business we felt that you know that posed a risk to us as a now sort of high dividend paying nature and so better to sort of wind it down if we didn't have the recurring revenue under it to support it through a difficult time so again sort of reduce our exposure and the public tooting our two examples of this strategy so again was something that we you know the office would have been lost we felt it was important to maintain it so we stepped in and put in a good operator in there therefore we continued to have the office and it is growing its revenue the tooting business is something that we took our time to acquire it has delivered lots of different value in different areas it produced a lot of increases 8% from well revenue gross revenue from you know 200,000 to 1.6 million or 1.5 million got a great operator into network he went on actually to own two others which are now doing fantastically well we had a then we had a manager didn't deliver as much as we hoped but we changed his profitability and we've now got another star player in there and hopefully he'll go on to own more of it or all of it in due course so I suppose and in the meantime we'd be benefiting from the increased 8% and profit generation over the years so operating performance just really to give you a nice flavor of the network and how it performs and so a couple of sort of stats we take from the industry sort of data company which 20A they generally sort of have the data for the for the industry and produce these statistics so first thing to say is it was good to have a number one number one property sold in subject contract across the area we operate in so that's fantastic obviously and then you know we put and we will do it through the end of the year we put it in slide normally where it's started in the slide where we say how many more of our offices we've got in the top three as showing I suppose to show the work that goes into improving the quality of our network and how we are improving and therefore continuing to move revenue forwards and this is just say look we've improved our market share in London 24% in the last five years that is another way I suppose of demonstrating that you know the network existing network is going forward perhaps to the back of portfolio management and the new talent we're bringing in hopefully our efforts to improve our platform and then just some other statistics you know this is against the operating area with us you're more likely to agree a sale you're more likely to exchange that property once you've agreed it you're less likely to have to withdraw your property from our services and you're less likely to have a sale fall through so hopefully those all bode well for a healthy network and then really digital evolution really recall Winkworth OS and this is I suppose to break it down to make it clear you know we look at it as lead generation how can we ensure that our digital investment generates more leads for a franchisees you know clearly that's being getting involved with ensuring that AIs can read I are websites and read our properties within it more easily and that's an investment in our website to ensure that can happen and therefore we can get more searches and more inquiries as people move some of their searching or a lot of their searching through these AI language models or working with traditional routes so we can cover that off and we have invested and we'll continue to invest we've done some of the work and we've got more to come we also will be up within sort of new website of a platform where we'll be able to provide more options for clients to be able to do things themselves should they wish obviously our whole purpose is we are a people business and they're front and forth they're front and center so we want to do things that support our people and support them in communicating with their clients then there's obviously the there are operating efficiencies you know how we can communicate with our franchisee network how we can use the data we have in our network how you know say the my Winkworth can help clients manage or have transparency around their their property transaction and their property dealings and obviously franchisee economics so what can we look at that doesn't undermine our people first business but gives them savings hopefully and ensures them they're more efficient and that they can add value to their business so so there are these are these are that's our thinking of how we do it obviously there is I mean a number of projects that are running first and foremost is a sort of new website platform which should be with us sort of this year which will be the first step and other parts are following so again from this side really the website is the center of center of the network really and hopefully we've always aspired to have a best in class website we feel it's something that franchisees can hang the hat off and it can deliver a lot of value to to our franchisees and and this just really gives you the leads I mean what's interesting on the leads visit sites is obviously you know we'd like to think you can see the surges in the market in 2021 for a start but but also that it's stuck which is worth noting and we've seen a significant pick up and part of that is AI generated so more searches coming from AI which has boosted our visits significantly from its more recent trajectory and then just to give you an idea you know obviously you're looking at this the the charts on the left valuation leads you know sort of around 6,000 to the network a year that's quite a big engine of delivering business and hopefully shows the value we are we add to an individual business through this sort of platform we've invested in to ensure it's it's it's best in class so looking back and looking ahead you know each one bordered in line with management expectations we continue with our plan of recruiting new talent to uplift our revenue and improve the the network we do have a we had a stream of new talent through the Peter Clark business joining our business improving the mix of it and we've our franchisees have done really well and managed the renters rights transition and managed to grow the lettings and management revenue through that uncertain time and you know we've deployed strong execution cash flow to to do that assisted acquisition and support franchisees whilst maintaining the dividend in the first half so going forward you know some of these goals are are always consistent goals you know being the first option for wishing to aspiring to be the first option for wishing to set up their own business operating in prime markets and continue to offer a platform allowing successful agents to rank in the top three in their area so they're profitable in all markets manage the portfolio to grow the quality of the network reputation and income providing many of options to ensure that we can track the best operators out there to join the Winkworth network through one of those options continue to invest in our brand digital platform to support our franchisees remain a people led business backed by the state of the art technology obviously we talked launching our new websites adapt to the new role AI is playing in property search ensure that we're there for adapted and providing value to our franchisees because of that adaptation we're having strong balance sheet enabling us to invest in opportunities as they arise through the cycle and finally share any strength for shareholders through regular dividend distributions so thank you that's the presentation so I suppose on to any questions that's great Dominic Gandry thank you very very much indeed for your presentation ladies and gentlemen please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen while the company takes a few moments to review those questions submitted today I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q&A can be accessed via invested dashboard and Dominic Andrew if I may know hand back to you and take us through the Q&A session kindly ask you to read out the questions where appropriate to do so and I'll pick up from you both at the end thank you we have a pre-submitted question investors are of course keen to hear the latest news on whether or not the current directors are likely to still be on the premises certainly interested to hear more about 34% shell iron oak in leave chair's wife who was hitherto unknown throwing her weight around can't really talk about that at all I'm afraid there's an ending meanwhile back at the coal face pleased to see the Leamington franchisee thriving and expanding more concerning is the closure of the south coast branches Dartmouth and Milford I may I can I can answer that I think yeah we've got a I already talented guy in Leamington and he's doing great things and so we're really pleased that we've backed him and and that's going really well and it's a it's a happy ship with great potential so that's that's fantastic the Dartmouth Milford hopefully explained a bit they are there's been a big change to second hand market for holiday holiday homes has really struggled due to recent sort of steps disincentive tax changes I suppose and so they sadly were not viable what level of sales transactions expect in London market in 2026 I'm just seeing this there we go sorry 2026 versus 2025 I think you're seeing it probably come in slightly below the yeah I think it's been pretty pretty resilient obviously it had started off with great hopes to to move significantly ahead as is the way with the property market of late macro events have affected things but I think we'll see it land within overall UK transactions still I think you were saying sort of 4% down so I think that's that seems reasonable so question of the 104 offices currently in the network how many would you classify as mature and how much revenue growth is typically achievable from a mature franchise of course yeah hard to I don't know if we have that categorized it that way sort of basically our London network is very mature so those 59 you know they they've been there for a very long time most of them and have great market share it does vary by area every area's got different transaction numbers and different property price points which all feed into different commissions and therefore opportunities what we did when we I suppose we look at that and when we did for example tooting we looked at it and said okay well look that's got a lot of transactions it's young professionals houses flats a lot of movement you know it doesn't have perhaps the big gardens of some areas which means people stay there forever so so you know had huge potential so we we invested in it to make sure we realized that potential that's not a direct answer but it explains that we do do look at it but there is generally more potential in in the London market because there's more movement than perhaps a country market where people move less often so question from Steven B with the equity owned businesses now representing a smaller proportion of the group should we expect the underlying margin profile to become more stable yes yes there's the there's a low risk from the well I suppose in particular the you know the fluctuations of PCI and was a good you know that says profitable that was based on significant deals so there was more risk I think yes yes I think we're we're taking you know as as a slightly uncertain backdrop and we're taking cautious approach and you know it's one of the tools we use to improve our network revenue and bring quality people into it you know the as you say we go back to initial tooting story the chat came on board wouldn't have brought it didn't have the funds to buy it you know and to neighboring offices which are sort of quick rapidly moving to the top 10 and went quite so it bought in some really good talent and generated some money along the way so it's it's one of the tools but we're wary to not overcommit to it what have been the key changes in the rentals market since the renters rights act came into being I think it's that from an agency point of view there's been a movement from upfront charging because of the fixed terms to charging monthly most of our franchisees are adapted to that so I hint why there's been a fairly smooth transition because we spent years before doing that not all of them and I think you saw that in the central London slide where they're slightly down but but that's the main thing from an agency point of view from a from a sort of industry from a client to consumer point of view clearly the issue will be around rental increases and whether tenants dispute those increases and how the tribunes can can take but but basically the overall message seems that it's in place and perhaps some of the fears that were being talked about haven't come to pass and we will continue it's just some of those landlords didn't wish to be under that road to environment do you expect to see any measures in the October budget which might have an impact on the sales market fingers crossed not I think he said he's not going to hopefully make the mistakes of budgets passed and that that wasn't within the remit so I'm hopeful and certainly what has been a great improvement is we haven't had the coke flying of last year which started the end of August you know sort of weighing on everyone so that's I'm I'm optimistic and I don't think there's going to be a particular housing agenda in the coming budget question Adam Stackpole left in February and development stroke investment closed with BTR development a huge driver and potential deliver of letting instructions for franchisees why isn't he being replaced I think it's just so I suppose at the moment we feel that there's probably a bit too much risk for the profile business we have to be involved in what is a very difficult market in the current the current economy I suppose in terms of the cost involved for developers and investment and what's been done in that sector is it's very much been very much very everyone's been struggling in it and so perhaps now is not the time to be pushing forward on it as we pick deference to being a you know a high dividend paying out progressive dividend business not say it may not be revisited in the future but that's the current thinking can management confirm the status of Simon Agates please one is he still not executive chair yes he is is he or representative still attending board meetings yes he is and he is still on the company's payroll further question today's statement says our cash position provides us with the capacity to continue to explore new opportunities as well as to absorb exceptional costs and third in 2026 does the cash position also provide the company with the capacity to maintain the dividend the wording suggests the company will prioritize new dividends over paying the dividend if the legal fees really rack up I alluded to the dividends when we went through the dividend slide and we can't really say more than that at the moment yeah I think we are a dividend paying we understand it's important to our shareholders and we'll be looking to pay them as we always have done that marks the end of the questions that's great if I may just jump back in there and thank you for addressing those questions for investors today but Dominic before I redirect investors to provide you with their feedback question is particularly important to yourself and the company could I please just ask you for a few closing comments I think really it's to say the the company has proven again that it's fantastic you resilient business and that's driven by some really high quality people in the network working very hard you know for themselves as business owners to to succeed and and never more so than when markets are uncertain do they succeed so I think we've seen that we are in uncertain times but that will always be true which bodes very well for Winkworth future Dominic Andrew thank you once again for updating investors today could I please ask investors not to close the session as you know we automatically redirected to provide your feedback which helped the company better understand.
Dominic Agace: They opened in 2018 and have done that, so it is year 19 for Borehamwood, and have done that since then with our backing of Borehamwood, Hertford, Eton, South Wales. The revenue last year was GBP 1.9 million. We continue to support people like Jamie and Kylie where they look to expand because we have our trust in them. Owned offices. It is a bit of a change, and I think we talked about it a little bit up front. We have consolidated it. They are less, I suppose, there is less exposure to them as a venture within our business. We have Crystal Palace we sold on. It was a situation where we were set to lose the office due to a contract dispute, and so we took it on. We put in a good manager.
Dominic Agace: They opened in 2018 and have done that, so it is year 19 for Borehamwood, and have done that since then with our backing of Borehamwood, Hertford, Eton, South Wales. The revenue last year was GBP 1.9 million. We continue to support people like Jamie and Kylie where they look to expand because we have our trust in them. Owned offices. It is a bit of a change, and I think we talked about it a little bit up front. We have consolidated it. They are less, I suppose, there is less exposure to them as a venture within our business. We have Crystal Palace we sold on. It was a situation where we were set to lose the office due to a contract dispute, and so we took it on. We put in a good manager.
Dominic Agace: The manager didn't, in the end, wish to take it on himself, so we sold it to a neighboring franchisee who is a great operator, has a number of offices, and it slots in very neatly to his localized network. So, we kept the revenue stream from the area, actually boosted it many times over, I think, in terms of 4.8% and now put it in a place where it continues to deliver that for years to come. In terms of commercial investments, as I said, it is a very difficult market for that sector of the business. We felt that posed a risk to us in our high dividend paying nature, and so better to wind it down if we didn't have the recurring revenue under it to support it through a difficult time. So, again, reduce our exposure.
Dominic Agace: The manager didn't, in the end, wish to take it on himself, so we sold it to a neighboring franchisee who is a great operator, has a number of offices, and it slots in very neatly to his localized network. So, we kept the revenue stream from the area, actually boosted it many times over, I think, in terms of 4.8% and now put it in a place where it continues to deliver that for years to come. In terms of commercial investments, as I said, it is a very difficult market for that sector of the business. We felt that posed a risk to us in our high dividend paying nature, and so better to wind it down if we didn't have the recurring revenue under it to support it through a difficult time. So, again, reduce our exposure.
Dominic Agace: The Pimlico and Tooting are two examples of this strategy. Pimlico, again, was something that the office would have been lost. We felt it was important to maintain it, so we stepped in and put in a good operator in there. Therefore, we continue to have the office, and it is growing its revenue. The Tooting business is something that we took our time to acquire. It has delivered lots of different value in different areas. It increases 8% from, well, revenue, gross revenue from 200,000 to 1.6 million or 1.5 million. Got a great operator into network. He went on, actually, to own two others, which are now doing fantastically well.
Dominic Agace: The Pimlico and Tooting are two examples of this strategy. Pimlico, again, was something that the office would have been lost. We felt it was important to maintain it, so we stepped in and put in a good operator in there. Therefore, we continue to have the office, and it is growing its revenue. The Tooting business is something that we took our time to acquire. It has delivered lots of different value in different areas. It increases 8% from, well, revenue, gross revenue from 200,000 to 1.6 million or 1.5 million. Got a great operator into network. He went on, actually, to own two others, which are now doing fantastically well.
Dominic Agace: Then we had a manager who did not deliver as much as hoped, but we changed his profitability. We have now got another staff layer in there, and hopefully he will go on to own more of it or all of it in due course. I suppose in the meantime, we would be benefiting from the increased 8% and profit generation over the years. So operating performance, just really to give you a nice flavor of the network and how it performs. A couple of the stats we take from the industry, sort of data company, which is TwentyEA. They generally sort of have the data for the industry, and then we produce these statistics. First thing to say is, always good to have a number 1. Number 1 property sold subject to contract across the area we operate it in. That is fantastic, obviously.
Dominic Agace: Then we had a manager who did not deliver as much as hoped, but we changed his profitability. We have now got another staff layer in there, and hopefully he will go on to own more of it or all of it in due course. I suppose in the meantime, we would be benefiting from the increased 8% and profit generation over the years. So operating performance, just really to give you a nice flavor of the network and how it performs. A couple of the stats we take from the industry, sort of data company, which is TwentyEA. They generally sort of have the data for the industry, and then we produce these statistics. First thing to say is, always good to have a number 1. Number 1 property sold subject to contract across the area we operate it in. That is fantastic, obviously.
Dominic Agace: We put, and we will do it sort of through the end of the year, we put it in a slide normally where it started in a slide where we say how many more of our offices we have got in the top 3 is showing. I suppose, to show the work that goes into improving the quality of our network and how we are improving, and therefore, continuing to move revenue forward. This is just to say, look, we have improved our market share in London, 24% in the last 5 years. That is another way, I suppose, of demonstrating that the existing network is going forward, perhaps the back of portfolio management and the new talent we are bringing in, hopefully our efforts to improve our platform. Just some other statistics. This is against the operating area.
Dominic Agace: We put, and we will do it sort of through the end of the year, we put it in a slide normally where it started in a slide where we say how many more of our offices we have got in the top 3 is showing. I suppose, to show the work that goes into improving the quality of our network and how we are improving, and therefore, continuing to move revenue forward. This is just to say, look, we have improved our market share in London, 24% in the last 5 years. That is another way, I suppose, of demonstrating that the existing network is going forward, perhaps the back of portfolio management and the new talent we are bringing in, hopefully our efforts to improve our platform. Just some other statistics. This is against the operating area.
Dominic Agace: With us, you are more likely to agree a sale, you are more likely to exchange that property once you have agreed it, you are less likely to withdraw your property from our services, and you are less likely to have a sale fall through. Hopefully those all bode well for a healthy network. Then we have digital evolution, really we call Winkworth OS. This is, I suppose, to break it down to make some clear, we look at it as lead generation. How can we ensure that our digital investment generates more leads for our franchisees? Clearly that has been getting involved with ensuring that AIs can read our website and read our properties within it more easily.
Dominic Agace: With us, you are more likely to agree a sale, you are more likely to exchange that property once you have agreed it, you are less likely to withdraw your property from our services, and you are less likely to have a sale fall through. Hopefully those all bode well for a healthy network. Then we have digital evolution, really we call Winkworth OS. This is, I suppose, to break it down to make some clear, we look at it as lead generation. How can we ensure that our digital investment generates more leads for our franchisees? Clearly that has been getting involved with ensuring that AIs can read our website and read our properties within it more easily.
Dominic Agace: That is an investment in our website to ensure that can happen, and therefore we can get more searches and more inquiries as people move some of their searching or a lot of their searching through these AI language models and away from traditional routes, so we can cover that off. We have invested and will continue to invest. We have done some of the work, and we have got more to come. We also will be off with the new website of our platform where we will be able to provide more options for clients to be able to do things themselves should they wish. Obviously, our whole purpose is we are a people business, and they are front and center. So we want to do things that support our people and support them in communicating with their clients.
Dominic Agace: That is an investment in our website to ensure that can happen, and therefore we can get more searches and more inquiries as people move some of their searching or a lot of their searching through these AI language models and away from traditional routes, so we can cover that off. We have invested and will continue to invest. We have done some of the work, and we have got more to come. We also will be off with the new website of our platform where we will be able to provide more options for clients to be able to do things themselves should they wish. Obviously, our whole purpose is we are a people business, and they are front and center. So we want to do things that support our people and support them in communicating with their clients.
Dominic Agace: Then there are obviously operating efficiencies in how we can communicate with our franchisee network, how we can use the data we have in our network. How, say, My Winkworth can help clients manage or have transparency around their property transactions and their property dealings. And obviously, franchisee economics. So what can we look at that doesn't undermine our people-first business, but gives them savings, hopefully, and ensures them they are more efficient and that they can add value to their business. So that's our thinking of how we do it. Obviously, there is a number of projects that are running. First and foremost is a new website platform, which should be with us this year, which will be the first step, and other parts are following. So again, just really a slide, really.
Dominic Agace: Then there are obviously operating efficiencies in how we can communicate with our franchisee network, how we can use the data we have in our network. How, say, My Winkworth can help clients manage or have transparency around their property transactions and their property dealings. And obviously, franchisee economics. So what can we look at that doesn't undermine our people-first business, but gives them savings, hopefully, and ensures them they are more efficient and that they can add value to their business. So that's our thinking of how we do it. Obviously, there is a number of projects that are running. First and foremost is a new website platform, which should be with us this year, which will be the first step, and other parts are following. So again, just really a slide, really.
Dominic Agace: The website is the center of the network, really, and hopefully, we've always aspired to have a best-in-class website. We feel it's something that franchisees can hang their hat off, and it can deliver a lot of value to our franchisees. This just really gives you the leads. What's interesting on the leads, visit sites, obviously, I think you see the surges in the market in 2021 for a start. But also that it's stuck, which is worth noting. We've seen a significant pickup, and part of that is AI-generated. So, more searches coming from AI, which has boosted our visits significantly from its more recent trajectory. Then just to give you an idea, obviously, looking at the charts on the left, valuation leads, sort of around 6,000 to the network a year.
Dominic Agace: The website is the center of the network, really, and hopefully, we've always aspired to have a best-in-class website. We feel it's something that franchisees can hang their hat off, and it can deliver a lot of value to our franchisees. This just really gives you the leads. What's interesting on the leads, visit sites, obviously, I think you see the surges in the market in 2021 for a start. But also that it's stuck, which is worth noting. We've seen a significant pickup, and part of that is AI-generated. So, more searches coming from AI, which has boosted our visits significantly from its more recent trajectory. Then just to give you an idea, obviously, looking at the charts on the left, valuation leads, sort of around 6,000 to the network a year.
Dominic Agace: That's quite a big engine of delivering business and hopefully shows the value we add to an individual business through this sort of platform we invest in to ensure it's best-in-class. So looking back and looking ahead. H1 broadly in line with management expectations. We continue with our plan of recruiting new talent to uplift our revenue and improve the network. We had a stream of new talent through the Peter Clarke business, joining our business, improving the mix of it. Our franchisees have done really well and managed the Renters' Rights Act transition and managed to grow the lettings and management revenue through that uncertain time. We've deployed strong increasing cash flow to do that, assisted acquisition and support franchisees whilst maintaining the dividend in the H1. So going forward, some of these goals are always consistent goals.
Dominic Agace: That's quite a big engine of delivering business and hopefully shows the value we add to an individual business through this sort of platform we invest in to ensure it's best-in-class. So looking back and looking ahead. H1 broadly in line with management expectations. We continue with our plan of recruiting new talent to uplift our revenue and improve the network. We had a stream of new talent through the Peter Clarke business, joining our business, improving the mix of it. Our franchisees have done really well and managed the Renters' Rights Act transition and managed to grow the lettings and management revenue through that uncertain time. We've deployed strong increasing cash flow to do that, assisted acquisition and support franchisees whilst maintaining the dividend in the H1. So going forward, some of these goals are always consistent goals.
Dominic Agace: Being the first option for agents wishing to, aspiring to be the first option for agents wishing to set up their own business operating in prime markets and continue to offer a platform allowing successful agents to rank in the top 3 in their area, so they're profitable in all markets, as we said. Manage the portfolio to grow the quality of the network, reputation, and income. Providing a menu of options to ensure that we can attract the best operators out there to join the Winkworth network through one of those options. Continue to invest in our brand and digital platform to support our franchisees. Remain a people-led business backed by state-of-the-art technology. We talked launching our new website. Adapt to the new role AI is playing in property search, ensure that we're therefore adapted and providing value to our franchisees because of that adaptation.
Dominic Agace: Being the first option for agents wishing to, aspiring to be the first option for agents wishing to set up their own business operating in prime markets and continue to offer a platform allowing successful agents to rank in the top 3 in their area, so they're profitable in all markets, as we said. Manage the portfolio to grow the quality of the network, reputation, and income. Providing a menu of options to ensure that we can attract the best operators out there to join the Winkworth network through one of those options. Continue to invest in our brand and digital platform to support our franchisees. Remain a people-led business backed by state-of-the-art technology. We talked launching our new website. Adapt to the new role AI is playing in property search, ensure that we're therefore adapted and providing value to our franchisees because of that adaptation.
Dominic Agace: We have a strong balance sheet enabling us to invest in opportunities as they arise through the cycle. And finally, share any strength with shareholders through regular dividend distributions. So thank you. That's the presentation. So if we head on to any questions.
Dominic Agace: We have a strong balance sheet enabling us to invest in opportunities as they arise through the cycle. And finally, share any strength with shareholders through regular dividend distributions. So thank you. That's the presentation. So if we head on to any questions.
Operator 2: That's great, Dominic, Andrew, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. And Dominic, Andrew, if I may now hand back to you and take us through the Q&A session. Kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end. Thank you.
Operator: That's great, Dominic, Andrew, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. And Dominic, Andrew, if I may now hand back to you and take us through the Q&A session. Kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end. Thank you.
Andrew Nicol: We have a pre-submitted question. Investors are, of course, keen to hear the latest news on whether or not the current directors are likely to still be on the premises. Certainly interested to hear more about 34% shareholder Irene Ho, Kim Lee, the chair's wife, who was hitherto unknown, throwing her weight around. Can't really talk about that at all, I'm afraid. There's an ending. Meanwhile, back at the coalface, pleased to see the Leamington franchisee thriving and expanding. More concerning is the closure of the South Coast branches, Dartmouth and Milford.
Andrew Nicol: We have a pre-submitted question. Investors are, of course, keen to hear the latest news on whether or not the current directors are likely to still be on the premises. Certainly interested to hear more about 34% shareholder Irene Ho, Kim Lee, the chair's wife, who was hitherto unknown, throwing her weight around. Can't really talk about that at all, I'm afraid. There's an ending. Meanwhile, back at the coalface, pleased to see the Leamington franchisee thriving and expanding. More concerning is the closure of the South Coast branches, Dartmouth and Milford.
Dominic Agace: Well, I can answer that. I think, yeah, we've got a really talented guy in Leamington, and he's doing great things. So we're really pleased that we've backed him, and that's going really well, and it's a happy ship with great potential, so that's fantastic. The Dartmouth and Milford, hopefully I explained a bit. There's been a big change to the secondhand market for holiday rental, holiday homes has really struggled due to recent sort of steps, disincentives, tax changes, I suppose. So they sadly were not viable. What are the sales transactions expected in the London market in 2026? Let me see if I can get this. There we go. Sorry. 2026 versus 2025. I think you're seeing it probably come in slightly below the Yeah, I think it's been pretty resilient. Obviously, it had started off with great hopes to move significantly ahead.
Dominic Agace: Well, I can answer that. I think, yeah, we've got a really talented guy in Leamington, and he's doing great things. So we're really pleased that we've backed him, and that's going really well, and it's a happy ship with great potential, so that's fantastic. The Dartmouth and Milford, hopefully I explained a bit. There's been a big change to the secondhand market for holiday rental, holiday homes has really struggled due to recent sort of steps, disincentives, tax changes, I suppose. So they sadly were not viable. What are the sales transactions expected in the London market in 2026? Let me see if I can get this. There we go. Sorry. 2026 versus 2025. I think you're seeing it probably come in slightly below the Yeah, I think it's been pretty resilient. Obviously, it had started off with great hopes to move significantly ahead.
Dominic Agace: And as is the way with the property market of late, macro events have affected things. But I think we will see it land within overall UK transactions, sort of 4%. I think Victor was saying sort of 4% down. So I think that seems reasonable.
Dominic Agace: And as is the way with the property market of late, macro events have affected things. But I think we will see it land within overall UK transactions, sort of 4%. I think Victor was saying sort of 4% down. So I think that seems reasonable.
Andrew Nicol: So question, of the 104 offices currently in the network, how many would you classify as mature? And how much revenue growth is typically achievable from a mature franchise?
Andrew Nicol: So question, of the 104 offices currently in the network, how many would you classify as mature? And how much revenue growth is typically achievable from a mature franchise?
Dominic Agace: Gosh, yeah, I would have to. I do not know if we have categorized it that way. So basically, our London network is very mature. So those 59, they have been there for a very long time, most of them, and have great market share. It does vary by area. Every area has got different transaction numbers and different property price points, which all feed in different commissions and therefore opportunities. What we did when we, I suppose we look at that, and when we did, for example, Tooting, we looked at it and said, "Okay, well look, that has got a lot of transactions, young professionals, houses, flats, a lot of movement." It does not have perhaps the big gardens of some areas, which means people stay there forever. So it had huge potential. So we invested in it to make sure we realized that potential.
Dominic Agace: Gosh, yeah, I would have to. I do not know if we have categorized it that way. So basically, our London network is very mature. So those 59, they have been there for a very long time, most of them, and have great market share. It does vary by area. Every area has got different transaction numbers and different property price points, which all feed in different commissions and therefore opportunities. What we did when we, I suppose we look at that, and when we did, for example, Tooting, we looked at it and said, "Okay, well look, that has got a lot of transactions, young professionals, houses, flats, a lot of movement." It does not have perhaps the big gardens of some areas, which means people stay there forever. So it had huge potential. So we invested in it to make sure we realized that potential.
Dominic Agace: It is not a direct answer, but it explains that we do look at it. But there is generally more potential in the London market because there is more movement than perhaps a country market where people move less often.
Dominic Agace: It is not a direct answer, but it explains that we do look at it. But there is generally more potential in the London market because there is more movement than perhaps a country market where people move less often.
Andrew Nicol: So question from Stephen B. With the equity-owned businesses now representing a smaller proportion of the group, should we expect the underlying margin profile to become more stable?
Andrew Nicol: So question from Stephen B. With the equity-owned businesses now representing a smaller proportion of the group, should we expect the underlying margin profile to become more stable?
Dominic Agace: Well, there's lower risk from the, well, I suppose in particular the fluctuations of DCI and was a good, as I said, profitable. It was based on significant deals, so there was more risk. I think, yes. I think we're taking, as a slightly uncertain backdrop, and we're taking a cautious approach, and it's one of the tools we use to improve our network revenue and bring quality people into it. As I say, we go back to the initial Tooting story. The chap who came on board wouldn't have bought it, didn't have the funds to buy it, and two neighboring offices, which are rapidly moving to the top 10 in Winkworth. So it brought in some really good talent and generated some money along the way. So it's one of the tools, but we're wary to not over-commit to.
Dominic Agace: Well, there's lower risk from the, well, I suppose in particular the fluctuations of DCI and was a good, as I said, profitable. It was based on significant deals, so there was more risk. I think, yes. I think we're taking, as a slightly uncertain backdrop, and we're taking a cautious approach, and it's one of the tools we use to improve our network revenue and bring quality people into it. As I say, we go back to the initial Tooting story. The chap who came on board wouldn't have bought it, didn't have the funds to buy it, and two neighboring offices, which are rapidly moving to the top 10 in Winkworth. So it brought in some really good talent and generated some money along the way. So it's one of the tools, but we're wary to not over-commit to.
Andrew Nicol: What have been the key changes in the rentals market since the Renters' Rights Act came into being?
Andrew Nicol: What have been the key changes in the rentals market since the Renters' Rights Act came into being?
Dominic Agace: I think it's that, from an agency point of view, there's been a movement from upfront charging because of the fixed terms to charging monthly. Most of our franchisees have adapted to that, hence why there's been a fairly smooth transition. They spent years before doing that. Not all of them, and I think you saw that in Central London slide where they're slightly down. But that's the main thing from an agency point of view. From a sort of industry, from a client consumer point of view, clearly the issue will be around rental increases and whether tenants dispute those increases and how the tribunal can cope. But basically, the overall message seems that it's in place and perhaps some of the fears that were being talked about haven't come to pass, and we will continue.
Dominic Agace: I think it's that, from an agency point of view, there's been a movement from upfront charging because of the fixed terms to charging monthly. Most of our franchisees have adapted to that, hence why there's been a fairly smooth transition. They spent years before doing that. Not all of them, and I think you saw that in Central London slide where they're slightly down. But that's the main thing from an agency point of view. From a sort of industry, from a client consumer point of view, clearly the issue will be around rental increases and whether tenants dispute those increases and how the tribunal can cope. But basically, the overall message seems that it's in place and perhaps some of the fears that were being talked about haven't come to pass, and we will continue.
Dominic Agace: It's just some of those landlords didn't wish to be under that regulatory environment.
Dominic Agace: It's just some of those landlords didn't wish to be under that regulatory environment.
Andrew Nicol: Do you expect to see any measures in the October budget which might have an impact on the sales market?
Andrew Nicol: Do you expect to see any measures in the October budget which might have an impact on the sales market?
Dominic Agace: Fingers crossed not. I think he said he's not going to, hopefully, make the mistakes of budgets past, and that that wasn't within the remit. I'm hopeful and certainly what has been a great improvement is we haven't had the kite flying of last year, which started at the end of August, weighing on everyone. I'm optimistic, and I don't think there's going to be a particular housing agenda in the coming budget.
Dominic Agace: Fingers crossed not. I think he said he's not going to, hopefully, make the mistakes of budgets past, and that that wasn't within the remit. I'm hopeful and certainly what has been a great improvement is we haven't had the kite flying of last year, which started at the end of August, weighing on everyone. I'm optimistic, and I don't think there's going to be a particular housing agenda in the coming budget.
Andrew Nicol: Question, Adam Stackpole left in February and development stroke investment closed, with BTR development a huge driver and potential deliverer of letting instructions for franchisees. Why isn't he being replaced?
Andrew Nicol: Question, Adam Stackpole left in February and development stroke investment closed, with BTR development a huge driver and potential deliverer of letting instructions for franchisees. Why isn't he being replaced?
Dominic Agace: I think it is just, I suppose at the moment we feel that there is probably a bit too much risk for the profile of the business we have to be involved in what is a very difficult market in the current economy, I suppose, in terms of the costs involved with developers and investment and what is being done in that sector is everyone has been struggling in it. Perhaps now is not the time to be pushing forward on it. I think the deference to being a high dividend paying out progressive dividend business. Not to say it may not be revisited in the future, but that is the current thinking.
Dominic Agace: I think it is just, I suppose at the moment we feel that there is probably a bit too much risk for the profile of the business we have to be involved in what is a very difficult market in the current economy, I suppose, in terms of the costs involved with developers and investment and what is being done in that sector is everyone has been struggling in it. Perhaps now is not the time to be pushing forward on it. I think the deference to being a high dividend paying out progressive dividend business. Not to say it may not be revisited in the future, but that is the current thinking.
Andrew Nicol: Can management confirm the status of Simon Agace, please? One, is he still non-executive chair? Yes, he is. Is he or representatives still attending board meetings? Yes, he is, and he is still on the company's payroll. A further question. Today's statement says our cash position provides us with the capacity to continue to explore new opportunities as well as to absorb exceptional costs incurred in 2026. Does the cash position also provide the company with the capacity to maintain the dividend? The wording suggests the company will prioritize new dividends over paying the dividend if the legal fees really rack up. I alluded to the dividends when we went through the dividend slide, and we cannot really say more than that at the moment.
Andrew Nicol: Can management confirm the status of Simon Agace, please? One, is he still non-executive chair? Yes, he is. Is he or representatives still attending board meetings? Yes, he is, and he is still on the company's payroll. A further question. Today's statement says our cash position provides us with the capacity to continue to explore new opportunities as well as to absorb exceptional costs incurred in 2026. Does the cash position also provide the company with the capacity to maintain the dividend? The wording suggests the company will prioritize new dividends over paying the dividend if the legal fees really rack up. I alluded to the dividends when we went through the dividend slide, and we cannot really say more than that at the moment.
Dominic Agace: Yeah, I think we are a dividend-paying. We understand it is important to our shareholders, and we will be looking to pay them as we always have done.
Dominic Agace: Yeah, I think we are a dividend-paying. We understand it is important to our shareholders, and we will be looking to pay them as we always have done.
Andrew Nicol: That marks the end of the questions.
Andrew Nicol: That marks the end of the questions.
Operator 2: That is great. If I may just jump back in there and thank you for addressing those questions for investors today. Dominic, before I redirect investors to provide you with their feedback, which is particularly important to yourself and the company, could I please just ask you for a few closing comments?
Operator: That is great. If I may just jump back in there and thank you for addressing those questions for investors today. Dominic, before I redirect investors to provide you with their feedback, which is particularly important to yourself and the company, could I please just ask you for a few closing comments?
Dominic Agace: I think really it is to say the company has proven again that it is a fantastically resilient business, and that is driven by some really high-quality people in the network, working very hard for themselves as business owners to succeed and never more so than when markets are uncertain do they succeed. I think we have seen that. We are in uncertain times, but that will always be true, which bodes very well for Winkworth's future.
Dominic Agace: I think really it is to say the company has proven again that it is a fantastically resilient business, and that is driven by some really high-quality people in the network, working very hard for themselves as business owners to succeed and never more so than when markets are uncertain do they succeed. I think we have seen that. We are in uncertain times, but that will always be true, which bodes very well for Winkworth's future.
Operator 2: Dominic, Andrew, thank you once again for updating investors today. Could I please ask investors now to close this session? As you know, you will be automatically redirected to provide your feedback which will help the company better understand-
Operator: Dominic, Andrew, thank you once again for updating investors today. Could I please ask investors now to close this session? As you know, you will be automatically redirected to provide your feedback which will help the company better understand-
