Shares in M Winkworth Plc (AIM:WINK) fell 6% to 180p after the estate agency group said profits for 2025 would come in well below market expectations, following a sharper-than-expected slowdown in activity in the second half of the year.
The London-focused franchisor said adjusted pre-tax profit for the year to December is expected to be about £2.1 million, down from £2.35 million a year earlier and around 20% below current forecasts.
Revenues in the second half were broadly flat year on year as sales activity softened ahead of the Autumn Budget, when many transactions were delayed.
For the full year, network revenues rose about 6%, with sales up 9% and lettings income 2% higher. Winkworth said this was broadly in line with board expectations and reflected the resilience of its network in established London and regional markets.
Profitability was also hit by one-off administrative costs and higher marketing spend in prime central London, most of which had already been flagged at the half-year stage.
Net cash at year end is expected to be at least £3.9 million, slightly below last year.
Despite the profit shortfall, the board raised the full-year dividend by 7.3% to 13.2p a share.
Management said enquiry levels in early 2026 had been encouraging and expects delayed transactions to progress as mortgage rates ease.