Highlights

• M Winkworth and its non-executive chair Simon Agace agree to enter mediation in their High Court dispute.

• A further consent order sealed by the High Court extends the stay on proceedings until 23 November 2026.

• The independent board review's final findings match the initial recommendations the company reported in September.

• The Board accepts the review's recommendations in principle, with discussions on implementation still under way.

A boardroom battle at a London estate agency franchisor has moved from the courtroom towards the negotiating table. M Winkworth (LSE:WINK) said on Tuesday that it and its non-executive chair, Simon Agace, have agreed to enter mediation, while an independent review of its board has delivered final findings. The update extends a pause in High Court proceedings and sets up the next phase of a governance overhaul at the AIM-listed franchisor.

What M Winkworth announced

A further consent order, sealed by the High Court, extends the stay on proceedings until 23 November 2026. The stay was first imposed on 29 September for one month. The parties remain in settlement discussions and have now agreed to mediation.

A hearing that had been scheduled for 5 October stays adjourned, though either side can apply to restore it. Undertakings given by Agace under a consent order dated 12 August 2026 remain in force until the dispute is resolved or the court orders otherwise. The company classed the update as inside information.

How the dispute began

In August, M Winkworth started High Court proceedings against Agace, a former chief executive who remains non-executive chair. The claims concern alleged breaches of confidentiality, a relationship agreement dated November 2009, and directors' duties under the Companies Act 2006. The company also sought interim injunctive relief over proposed Board changes and the use of confidential information. The court has not ruled on the allegations.

The dispute has a family dimension. Agace's son, Dominic Agace, has been chief executive since 2006.

Inside the independent board review

The company commissioned an external advisory firm, which it has not named, to examine Board composition and governance. In September it reported initial recommendations and said the Board was considering its composition as a whole, including the balance of independence across the non-executive chair and non-executive director roles, as part of long-term succession planning.

The full findings have now arrived. M Winkworth said the final findings were consistent with the initial recommendations reported in September. The Board has agreed the recommendations in principle and discussions on implementation are ongoing. The detailed recommendations have not been published.

The cost of the fight

The dispute carries a financial bill. The company reported £105,000 of legal and advisory costs in the six months to 30 June 2026 and a further £376,000 incurred and committed between 1 July and 15 September. It said: "Further costs are expected, although the total amount remains uncertain and will depend on how matters progress." In September the Board warned that these costs would push reported pre-tax profit for 2026 materially below market expectations, while Underlying Profit was expected to be slightly ahead.

Payouts have continued meanwhile. The group declared a third-quarter Dividend of 3.3p per share, payable on 20 November.

Risks that remain

Mediation does not guarantee a settlement. If talks fail, the hearing can be restored and costs could rise further. Board changes stemming from the review are not yet defined, leaving uncertainty over the future make-up of the Board. For investors in small UK shares, governance clarity can weigh as heavily as trading.

What investors may watch next

The key date is 23 November 2026, when the current stay ends. Investors may watch for any mediation outcome, details of how the review's recommendations will be applied, and updated guidance on legal costs. The company said it would provide further updates as appropriate.

Where Winkworth stands

The tone has shifted from litigation to negotiation, and the governance review has moved from initial advice to accepted recommendations. How the Board applies those findings, and whether mediation closes the dispute, will shape the next update from this London Stock Exchange-quoted agency.