The Connells Group has announced pre-tax profits of £20.8m for the first half of 2009, more than double the £10.4m generated in the whole of 2008.

“The housing market has improved significantly this year compared to the dire conditions we experienced in 2008, particularly in the second part of the year. Not only have sales improved but we are seeing far fewer cancellations as buyer confidence increases,” says Connells Group Executive Chairman Stephen Shipperley. “Weekly sales activity is now running significantly ahead of the same period last year – in June the Group made twice as many net sales as in June 2008 – and for five months in a row we have seen an increase in house prices at the point of exchange.”

With revenue slightly down in the first half of 2009 against 2008, much of Connells profit generation has been the result of a major cost reduction exercise implemented during 2007/8 which included significantly reducing supplier costs and newspaper press spend. Connells has closed just thirty out of 490 branches and is seeking expansion opportunities.