Acqusitions boost growth at Belvoir Lettings

Property franchise group Belvoir Lettings are in a celebratory mood having announced a 21% improvement in group revenue to £13.7m.

The AIM-traded firm reported an increase in profit before tax of 40% year-on-year at £5.5m, and “strong” cash flow from operating activities of £4.6m, rising from £3.7m.

The company grew organically and through acqusition it seems with MAB Glos – a network of 87 financial services advisers operating through 64 offices as one of its key acqusitions. Belvoir further integrated Northwood into its own group functions, reducing its cost base by £0.2m per annum.

A total of 26 franchisee-assisted acquisitions were completed adding over £6.9m of network revenue, up from a £3.3m increase reported in the previous year.

Franchisees also increased in the year with no less than ten new franchise owners in the period.

CEO Dorian Gonsalves says: “The group achieved another year of significant growth, outperforming both the sales and lettings elements of the housing market and the financial services market”

“The increase in our like-for-like lettings management service fees of 2.6% outstripped the 1% rental index, and lettings were boosted further by a 4.5% uplift from our assisted acquisitions programme which performed ahead of our expectations.

“Meanwhile, our sales management service fees increased by 8.4% against the backdrop of a flat sales market in which a 2% fall in the number of UK property transactions was compensated by a modest increase of 2.5% in house prices.”

“2018 saw the group invest further into financial services with the acquisition of MAB Glos which has provided a platform for Belvoir to build a nationwide network of financial advisers to work with our franchise owners to maximise the sales of mortgages and other property-related financial services to our customers.

“Belvoir is uniquely positioned within the property sector, benefiting from the agility of a franchise business model compared with the larger corporate players, whilst providing our networks with the central office systems and support, not available to the smaller independent agents.”

“Belvoir is a strongly cash-generative business with revenues underpinned by the recurring ‘annuity-style’ lettings income stream coupled with the diversification into complementary property-related services, which will enable the group to overcome changes and outperform in the sector over the coming year.”