Property Franchise Group PLC (The) – Final Results

Property Franchise Group PLC (The) – Final Results

The Property Franchise Group PLC, one of the UK’s largest property franchises, today announces its final results for the year ended 31 December 2018.

Financial highlights:

  • Group revenue increased 11% to £11.2m (FY 2017: £10.1m)
  • Adjusted EBITDA* increased 15% to £5.1m (FY 2017: £4.4m)
  • Profit before tax £4.3m (FY 2017: £4.3m included net exceptional gain of £0.7m)
  • Operating margin increased to 39% (FY 2017: 37%)
  • Management Service Fees increased 14% to £9.4m (FY 2017: £8.3m)
  • Proposed final dividend increased by 11% to 6.0p, total of 8.4p (FY 2017: 7.5p)
  • Strong balance sheet with net cash of £2.3m (FY 2017: £0.1m)

*Before exceptional items and share-based payment charges

Operational highlights:

  • All six brands increased revenue with network revenue reaching £92m (2017: £85m)
  • 60 franchisees had annual revenue in excess of £0.5m and, of these, 11 had revenue in excess of £1m
  • Pay-per-click marketing delivered an 83% increase in leads to 30,474 (2017: 16,609)
  • 28 acquisitions at the franchisee level added 3,115 managed properties (2017: 2,012 managed properties)
  • The Group recruited 26 new franchisees (2017: 37) and completed 28 “resales” (same business, change of franchisee)
  • EweMove grew sales’ completions by 22% in a flat market and lettings’ completions by 26%.
  • There were 377 trading offices at year end (2017: 403) managing 55,000 rental properties (2017: 52,000)

Ian Wilson, Chief Executive Officer of The Property Franchise Group, commented:

“We are very pleased to be able to report another year of improvement across all key metrics. Our traditional high street brands benefited from further deployment of digital marketing “know-how” instilled by our hybrid brand. Encouragingly, EweMove grew its market share across those locations where it operates and delivered a pre-tax profit of £0.4m in a year when most competing hybrid estate agents produced losses.

We maintain tight financial discipline, reflected in a further strengthening in our balance sheet and an improved net cash position.  Furthermore, this underpins the Board’s ability to confidently propose a further, meaningful increase in the dividend for the sixth successive year since our IPO in December 2013.

We entered 2019 with a significant improvement in our positive net cash position and the highest level of recurring revenues in the Group’s history.  In addition, our profitable and established hybrid business provides further opportunities for growth.  The Board is confident about the prospects for 2019 and envisage that the loss of tenant fee revenue and continued regulatory intervention in our sector will create opportunities for further consolidation and growth.”  

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