The Connells Group has announced sharply reduced profits for the first half of this year – but says a strong second half of this year will make 2015 a record for the business.

Connells revealed pre-tax profits of £27.3m for the first six months of this year, down from £42.6m for the same period last year.

Connells, owned by Skipton Building Society, said it has experienced a notable upturn in activity in the second quarter of 2015 – and in particular during the post-election period.

In June alone, it said its estate agency division recorded a 27.5% increase in the number of sales agreed compared to June 2014.

Connells said it enters the second half of 2015 with a 13% increase in its residential sales pipeline compared to June 2014.

Connells has also seen significant upturn in new homes sales. In the first half of 2015, it recorded a 43% increase in sales of new homes compared to the same period in 2014.

Group CEO David Livesey said: “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 business, Connells’ expanding lettings network recorded a 23% increase in income for the first half of 2015.

A number of lettings businesses have been acquired in quick succession – including three in June alone – signalling that the company is in line to double its lettings footprint by the end of the year.

Connells has opened more than 100 lettings branches in the last 18 months, and Livesey made it clear that it is still on the acquisitions trail.

He said: “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.”