Grantham-headquartered Belvoir Group, the property franchise, has seen continued growth in the first half 2020 despite COVID-19, according to a trading update.
The company said that both revenue and operating profit are “comfortably ahead of 2019 with net profit in line with management’s pre-COVID expectations, as set at the start of the year.”
After a strong first quarter, trading in Q2 was subdued between 25 March and 13 May when the Group’s offices were closed and operating entirely under lockdown regulations.
Since the restrictions on the housing sector were lifted in mid-May, the firm says there has been a surge of activity due to pent-up demand.
This has seen Group network revenue in June up 12% compared with June 2019 with the lettings business up 17% and ahead of pre-COVID levels, and has resulted in June being a record-breaking month for the Newton Fallowell estate agency network in terms of instructions and sales, and for Belvoir’s financial services division in terms of written income.
Dorian Gonsalves, CEO, said: “This strong Group performance once again demonstrates the incredible resilience of the franchise business model in the face of both changes within the sector and challenges affecting the wider economy.
“The Group has benefitted from the considerable momentum built up during 2019 and the start of 2020, during which time the property division had fully mitigated the impact of the June 2019 tenant fee ban through a combination of assisted acquisitions and income diversification, investing in the Lovelle network and growing our financial services division’s network of advisers by 35%.
“With a return to pre-COVID levels of activity or better since housing sector restrictions were lifted, and the positive impact of the stamp duty reductions still to take effect, we are confident that the Group is well positioned to capitalise on the current market upturn and to take advantage of the opportunities arising from more challenging economic conditions.”