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Connells reports mortgage revenue up 14% – interim results

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  • 01/08/2018
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Connells reports mortgage revenue up 14% – interim results
Estate agent and property services provider Connells Group confirmed solid pre-tax profits of £28.9m in interim results, driven by strong residential mortgage lending despite a two per cent dip in housing transactions.

 

Its group market report, out last week confirmed residential mortgage business rose 59% in Q2 year-on-year, with first-time buyer activity up 12%. The interim report shows a 14% increase in revenues.

Remortgage activity during the second quarter was 8% ahead of Q1 2018. The year-on-year increase between Q2 2018 and Q2 2017 illustrates how significant this sector of the market has become during the past 12 months, said Connells.

The half-yearly figures reflect a ‘good result in difficult market conditions’ and its total group income increased by 1.1% against H1 2017.

Lettings income is reportedly also up 6.5% and Connells’ survey and valuation arm saw an uplift of 4.3% during the period.

“Our business has produced generally positive results in a challenging period for the housing market,” said Connells Group CEO David Livesey.

“Consumer sentiment remains subdued, impacted by economic and political uncertainty, but we are pleased with our performance which reflects resilience across our business operations.

“Our results are testament to the professionalism of our staff and the experience within our senior management teams who have worked successfully through difficult markets in the past, and our strategy of having a broad based, well diversified estate agency and property services business model,” he added.

The group has continued to invest in digital technologies such as its ‘sales progression’ tool MIO, it said, and the business grew through branch openings and acquisitions. It is looking for new opportunities to acquire sales and lettings businesses.

The group said given its significant cash reserves and no debt it will continue to look for investment opportunities as the year progresses.

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