Estate agency franchise Winkworth has warned that legal and advisory costs will materially reduce its full-year 2026 profits below current market expectations, following ongoing High Court proceedings against its former chief executive.
The company’s interim results, published today, reveal legal and advisory costs of £105,000 during the six months to the end of June 2026, with a further £376,000 incurred and committed up to 15 September 2026.
The costs stem from High Court proceedings initiated against current chair and former chief executive Simon Agace for alleged breach of confidentiality. The parties have entered talks, with the case adjourned until 5 October, though the final financial impact remains uncertain.
Trading performance
Despite the legal costs, Winkworth’s underlying trading performance showed resilience. Network revenues declined 1% year-on-year to £31.6 million for the first half of 2026. Network sales revenues fell 5% to £16.1 million, while lettings revenues increased 3% to £15.5 million.
Overall company revenue decreased 10% to £4.7 million, largely attributed to the winding down of its development and commercial business and the deconsolidation of Crystal Palace. Pre-tax profits declined 5% to £0.78 million after accounting for £0.11 million in legal costs during the period.
The financial challenges facing Winkworth reflect broader pressures in the sector, with estate agents facing rising financial distress levels across the market. This comes as financial services leaders report increased complexity in their roles since 2020.
Board response
Dominic Agace, chief executive of Winkworth, stated that the group’s underlying trading performance remains resilient, and the company expects underlying profit before the legal costs for full-year 2026 to be slightly ahead of market expectations.
“While the Board recognises the associated cost, it believes the work being undertaken is necessary and is continuing to consider ways to strengthen the Board and the Company’s wider governance arrangements,” Agace said.
The company noted that further costs are expected, though the total amount remains uncertain and will depend on how the ongoing proceedings and related discussions progress. It remains unclear whether the reported costs relate solely to the legal case.
