Tuesday, August 16, 2022

Trading significantly ahead of expectations at property group

Trading is significantly ahead of expectations at Belvoir Group, the Lincolnshire-based property franchise group.

The firm has revealed that trading during the four months to 30 April 2021 was “exceptionally strong and materially ahead of management’s expectations, with substantial revenue growth across all three markets.”

Management Service Fees (MSF), the group’s key underlying income stream from its property franchise division, is up 22% on 2020, with MSF from lettings up 12% and MSF from sales up 81%.

Both reflect the active residential property sector which has been fueled by both pent-up demand following the Coronavirus lockdowns and the Stamp Duty holiday which has now been extended to September 2021.

Additionally, Belvoir noted that the financial services division continues to achieve substantial growth with net income up 24% in part arising from an increase in its adviser network, up 12 since the year end to 214, and in part from the high demand for mortgages resulting from the increase in property transactions.

The firm expects activity to remain strong until at least the end of June, at which point the benefit of the Stamp Duty holiday is reduced by 50%, and probably through to the end of September when the Stamp Duty holiday ceases.

Dorian Gonsalves, CEO of Belvoir Group, said: “We have not seen activity in the residential property market at this level since early 2007. Even after a busy start to the year for completions, pipelines of agreed house sales are still almost double those of this time last year.

“Our investment in financial services has achieved more than we had hoped, with this division now becoming an important additional strand in our growth strategy. With much of our financial services business drawn from outside of our property franchise network, which currently only accounts for around 7% of our mortgage business, there is scope for much further growth both from within our franchise networks and from developing third party lead sources.

“The Group continues to identify earnings accretive acquisition opportunities as evidenced by our recent acquisition of the Nicholas Humphreys franchise network which added a further 21 offices to our property division. Meanwhile, our financial adviser network now stands at 214 and we are confident of achieving our target of 250 by the end of 2021.”

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