Legal costs set to push Winkworth’s profits down for 2026

Legal and advisory costs are set to push Winkworth’s profits down this year, the agency franchise brand has warned.

It comes after it was revealed this summer that the company had initiated High Court proceedings against current chair and former Chief Executive Simon Agace for breach of confidentiality.

The parties have since announced talks, with a case adjourned until October 5th but Winkworth’s interim results , published today, show related legal and advisory costs were £105,000 during the six months to the end of June 2026.

While the Board recognises the associated cost, it believes the work being undertaken is necessary.”

A further £376,000 of costs were incurred and committed up to September 15th 2026.

It is unclear if the costs only relate to the legal case.

Winkworth said in the update: “Further costs are expected, although the total amount remains uncertain and will depend on how matters progress.

“ The board now expects these ongoing legal and advisory costs to result in reported profit before tax for full-year 2026 being materially below current market expectations. The final impact remains uncertain and will depend on how the ongoing proceedings and related discussions progress.”

For the first half of the year, Winkworth reported network revenues were 1% lower annually to £31.6 million.

Network sales revenues fell by 5% to £16.1 million, while lettings revenues rose by 3% to £15.5 million (H1 2025: £15.1 million)

Overall company revenue was down by 10% at £4.7 million, largely due to the winding down of its development and commercial business and the deconsolidation of Crystal Palace.

Pre-tax profits were down by 5% to £0.78 million, after £0.11 million of exceptional legal costs incurred during the period.

Dominic Agace, Chief Executive of Winkworth, said the group’s underlying trading performance remains resilient, and the Company expects the underlying profit before the exceptional legal costs for full-year 2026 to be slightly ahead of market expectations.

He says: “ 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.”