End of year financial results
Outstanding growth for Land operation
Continued growth for New Homes business
A strong performance from Connells Group
Outstanding results and profits, continued growth and investment.
Connells Group today announces pre-tax profits of £73.4m for 2016. The result represents an increase of 17.4% on the previous year and a robust performance across all areas of the Connells Group.
2016 highlights include:
- Total number of properties sold up 8%; new homes sales up 5%;
- 44% increase in income from the Land division and New Homes income up 19%;
- Lettings properties under management up 23%;
- Mortgage Services income up 18%; 10% increase in mortgages arranged and generated over £8.2bn of lending;
- 33% rise in income from Connells Survey & Valuation and a number of major contract wins;
- Conveyancing income uplift of 8%.
The pre-tax profit includes a gain of £17m from the part disposal of shares in ZPG Plc.
“Connells Group announces another exceptional year of activity which firmly places us at the forefront of our industry,” says David Livesey, Connells Group Chief Executive. “All parts of the business delivered a strong performance and, considered alongside the disruption caused by Brexit and other market challenges, makes our results even more remarkable. Our financial strength and continuous improvements means we are well poised for another year where we look forward to building on our already impressive achievements.”
During 2016, Connells Group enjoyed substantial growth extending its regional footprint via a number of new branch openings and acquisitions. Its Estate Agency business added a further 56 branches into its network which now stands at nearly 600 branches nationwide. Its Lettings division opened 31 branches in the year and now has nearly 400 branches. Combined, the Estate Agency and Lettings divisions acquired 15 businesses and lettings portfolios, most notably Rook Matthews Sayer, Porter Glenny, Paul Dubberley and Touchstone Residential Lettings. Connells Survey & Valuation acquired the surveying business Anderson & Associates, further strengthening its customer services capabilities and aim to maintain its position as the number one service provider across the market.
Connells Group also continued its high level of reinvestment back into the business to strengthen and ensure its market leading position including: £15m on branch refurbishments and IT upgrades, further development of the Hatched online estate agency proposition, boosting its Group headcount creating a further 500 jobs and developing its customer support teams. Connells Group now employs over 7,000 people.
“Our long term focus has always been to reinvest in the business and people within our Group,” continues David. “We are proud to have some of the best people in the profession within Connells Group and our continued success is down to them.”
Connells Group is one of the UK’s largest estate agency and property services providers operating under a number of well known high street estate agency brands including Connells, William H Brown, Barnard Marcus and Peter Alan.