Belvoir Group PLC (AIM: BLV), the UK's largest property franchise, is pleased to announce interim results for the six months ended 30 June 2019.
· 48% increase in Group revenue to £9,047,000 (H1 2018: £6,123,000)
· 5% increase in Management Service Fees (MSF) to £4,201,000 (H1 2018: £4,015,000)
· Financial Services division revenue up significantly to £3,969,000 (H1 2018: £1,311,000) benefitting from November 2018 acquisition of MAB (Gloucester) Limited ("MAB Glos")
· 18% increase in gross profit to £6,198,000 (H1 2018: £5,242,000)
· 23% increase in adjusted profit before tax to £2,999,000 (H1 2018: £2,429,000)
· MAB Glos and the underlying business each contributed around 50% of the increased gross profit and adjusted profit before tax
· Adjusted earnings per share up by 21% to 6.9p (H1 2018: 5.7p) and basic earnings per share of 6.1p (2018: 6.9p - included exceptional £0.8m credit to profit)
· Interim dividend is maintained at 3.4p with interim dividend cover at 2.0x
· 300 (2018: 300) property franchise offices having opened in four new territories and merged four into adjacent offices
· Net increase of 100 financial services advisers bringing total to 136 (H1 2018: 36) of which 87 were acquired with MAB Glos
· 16 franchisee assisted acquisitions completed in the year to date comprising £4,194,000 of acquired franchisee turnover
· Gross profit split of 66% lettings: 15% sales: 19% financial services (H1 2018: 74%:17%:9%) reflects continued lettings bias and growing investment in financial services
· Number of managed properties increased 6% to 64,650 (H1 2018: 61,100)
Dorian Gonsalves, Chief Executive Officer of Belvoir Group, commenting on the results, said:
"I am delighted to report another half year of further strategic and trading progress for the Group, with our diversification into financial services building on the growth of the underlying business. Trading across lettings, sales and financial services continues to outperform their respective markets and deliver strong results for the Group.
"The further take-up of property sales, financial services and franchisee-led acquisitions demonstrates the entrepreneurial spirit of our franchisees in the face of even more challenging market conditions.
"I am pleased to further report that Belvoir has achieved a promising start to the second half, and as such the Company is on track to meet management expectations for the full year."