Estate Agency Firm Winkworth has revealed it has reduced franchise fees in order to help its businesses weather the coronavirus outbreak.
Since the government’s directive on the temporary closing of high street branches came into
effect on 24 March 2020, Winkworth revealed it has undertaken a “number of initiatives” to help its franchisees
It said it has decided to cut non-essential marketing and training courses and has passed on its savings to its franchisees, and provided them with “comprehensive” help on business topics including remote working, maintaining a dialogue with customers, employment rights and government loan schemes.
The news comes as part of the firm’s trading update for the year ending 31 December 2019, in which it posted profit before tax of £1.63m, up from £1.45m the previous year.
It also reported franchised office network revenue of £48.3m (2018: £46.5m), revenues of £6.42m up from £5.83m and a year-end cash balance of £5.37m.
Dominic Agace, CEO, said: “In 2019, we recorded another good set of results against
testing market conditions, and the increase in our dividend reflects this achievement. We are proud of the strength of our brand and the balance in our business between sales and rentals. We are now waiting to see how great an impact the coronavirus crisis will have on the current year’s trading and doing all we can to safeguard our franchisees, customers and employees.
“The long-term fundamentals for the housing market remain in place and with a strong financial position and a proven, defensive model, we are well placed to withstand this fast moving situation.”