Belvoir Lettings plc Preliminary Results

Belvoir Lettings plc Preliminary Results

Belvoir Lettings plc (AIM: BLV), the UK's largest property franchise group, is pleased to announce its preliminary results for the year ended 31 December 2017.

  • Growth in Management Service Fees (MSF) of 23% to £7.9m (2016: £6.4m), of which 17% related to a full year inclusion of Northwood GB Limited ("Northwood")
  • The Group retained its strong lettings bias with a ratio of lettings to sales revenue of 80:20 (2016: 76:24)
  • Group revenue up 14% to £11.3m (2016: £9.9m) with increases led by the 2016 Northwood and the 2017 Brook Financial Services ("Brook") acquisitions being partially offset by the planned franchising of six Belvoir corporate offices
  • Profit before tax up 62% to £3.9m (2016: £2.4m) and adjusted profit before tax up 39% to £4.9m (2016: £3.5m) as a result of the enlarged group and continued organic growth in the underlying business
  • Year-end cash position of £1.4m (2016: £1.6m) and bank debt of £6.5m (2016: £7.0m) having paid £1.7m in cash for the acquisition of Brook
  • Basic earnings per share (EPS) of 8.6p (2016: 5.7p); adjusted EPS of 11.3p (2016: 8.8p)
  • Increased final dividend of 3.5p (2016: 3.4p) giving a total dividend for the year of 6.9p (2016: 6.8p)

Operational highlights

  • Acquisition of Brook, a specialist mortgage broker in July 2017
  • £0.3m reduction in cost base arising from Q1 2017 restructuring at Northwood
  • 23 (2016: nine) assisted franchisees' acquisitions adding over £3.3m (2016: £1.5m) to network revenue and MSF of £351,000 (2016: £243,000) p.a.
  • The Group now manages 58,020 (2016: 55,756) properties
  • Belvoir won the gold award for "Franchise/Network Group of the Year" at the Negotiators Awards 2017
  • Northwood won the gold allAgents award for Best Franchise and Best Lettings Agent in the UK 2017 

Dorian Gonsalves, Chief Executive Officer of Belvoir Lettings, commented: "We are pleased to report another year of strong growth for the Group, in terms of both revenues and profitability.  Our franchisees, who are mostly owner-operators, have continued to grow organically, through diversification and by making local portfolio acquisitions, all of which have contributed to our adjusted profit in 2017 being up 39%.  Our franchisees are incredibly motivated to find ways to grow and develop their business and this dynamism, combined with local property expertise, underpins our continued successful growth. 

 Looking to 2018, the Board remains confident that the Belvoir Group will benefit from further consolidation within the sector, further integration of our recent acquisitions to deliver additional efficiencies and diversification of property-related services offered through our franchised networks, to ensure a continued increase in shareholder value."

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