End of year financial results
Outstanding growth for Land operation
Continued growth for New Homes business
Robust half year performance from Connells Group
Interim profits for 2017 announced
Leading estate agency and property services provider Connells Group today announces its results for the first half of 2017, showing a consistently strong performance across all areas of the business. Overall revenue rose by 4%, pre-tax profits stood at £31.5m, up from £31.3m in 2016, and EBITDA was maintained at £38.1m (2016: £38.7m).
The Group’s results come despite a more subdued sales market, but with volumes showing a noticeable bounce back in activity towards the end of June and an increased sales pipeline as it enters the second half of the year:
“Our performance signals Connells Group’s strength in what has undoubtedly been an unsettled marketplace,” says Group CEO David Livesey. “The noticeable cooling in the market, as a result of uncertainty surrounding the Brexit negotiations, was further compounded by the snap general election which did little to boost consumer sentiment. Notwithstanding these exceptional external challenges, our breadth of business brought resilience, allowed us to gain market share and consolidate our position as the UK’s most profitable estate agency group.”
In particular, although the number of house sales dipped by 3%, Connells Group increased total income by 4% compared to the same period in 2016. The Group’s expanding lettings network continued to deliver outstanding results recording a 14.5% increase in income for the first half of the year. Mortgage Services revenue was up 11.8% and Connells Survey & Valuation saw an uplift of 4.5% in income.
The Group continued to invest in the business through more branch openings and opening a further head office location – Houghton Place, Dunstable – which will provide additional capacity for its planned long-term business growth.
“We will continue to invest in our people and processes to provide a market leading service regardless of any fluctuations in the market, and will continue to look for further investment and acquisition opportunities as the year progresses,” continues David. “We enter the second half of the year with a noticeably higher pipeline compared to last year and, with the imbalance between demand and supply still the key market feature, our outlook for the rest of the year remains positive.”