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Connells Profits Drop, but Remains Optimistic
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The Connells Group has announced that in the first half of this year, profits dropped substantially. However, the firm says that a strong second half of 2015 will make this year a record.
Connells revealed its pre-tax profits of £27.3m for the first six months of 2015 were down from £42.6m in the same period last year.
Connells Profits Drop, but Remains Optimistic
Connells is owned by Skipton Building Society.
It says that it experienced a sharp rise in activity during the second quarter (Q2) of 2015, especially after the general election.
In June, its estate agency division recorded a 27.5% increase in the amount of agreed sales compared with June 2014.
Connells says that it enters the second half of the year with a 13% rise in its residential sales pipeline compared to June last year.
Connells has also witnessed growth in new homes sales. In the first six months of the year, it recorded a 43% increase in sales of new homes compared to the same period in 2014.
David Livesey, the Group CEO, says: “Our profit figure understates a performance and market that has improved as the year has progressed.
“2015 started steadily and post-election, with the stabilising effect of a clear majority government and a recovering economy, market confidence now seems strong.
“Connells enters the second half of this year with a substantially increased sales pipeline and with every indication that this year will be a record-breaking year for growth and profit for the Connells Group.”
In other areas of the firm, Connells’ growing lettings network saw a 23% increase in income in the first half of 2015.
The Group purchased a number of lettings businesses in quick succession, including three in June. This supports the company’s aim to double its lettings division by the end of the year.
Connells has opened over 100 lettings branches in the past 18 months and Livesey insists that it is still hoping for more buys.
He states: “We still have the appetite and the means to expand the Group through a mix of organic growth and acquisitions.
“As the year progresses, we are open to new opportunities to acquire both sales and lettings business.”1
