Hunters Property buck the trend
High Street estate agents have taken a financial pounding in the last 5 years due to online estate agents. It rare you get any good news where high street agents have reported a healthy profit.
Revamped website & further new branches
High street Estate agents Hunters Property have this week reported an increase in first-half profits. Hunters Property have also added eight branches to its network and launching a revamped website. This is usually indicative of a well run estate agency.
In the six months ended 30 June, the company’s profit before tax increased 38% to £0.3m after network income jumped 2% to £17.9m and sales remained unchanged at £6.7m compared to a year ago.
Off the back of the results, the AIM-traded company declared an interim dividend of 0.8p per share, up from 0.7p a year ago.
Robust results in the six months to June 2018
Glynis Frew, the CEO of Hunters Property said: “We have delivered robust results in the six months to June 2018 against a backdrop of markets that have continued to contract in terms of completed sales transactions which HMRC reported as at June as being down 8.8% as against the same period last year.”
Despite the challenging market conditions for the letting market, Hunters’ board expects the company to perform better in the second half of the year and meet expectations of outperforming last year’s results over the full 12 months.
British Landlords Association
Mr Hanson From the British Landlords Association said “the letting market it would seem will remain subdued at least for the short term, but well run estate agents who utilise good marketing strategies coupled with the latest social media marketing will continue to do well.”
Plans to achieve this centre on the addition of new businesses to the company network and the firm’s “strong net asset position”.
“Our view is that the challenging market is unlikely to improve in the foreseeable future, but our intention is to continue the industry’s consolidation. The continuing work and support displayed by our staff and the franchise network is a great credit to the group,” said Glynis Frew.
Hunters’ shares were up 0.51% at 49.50p at 0844 BST. At the half year point, the firm’s net debt stood at £3m, up 32% compared to the same point last year, while cash and cash equivalents increased by 26% to £1.1m.