The Property Franchise Group PLC, one of the UK’s largest property franchises, today announces its final results for the year ended 31 December 2017.
- Group revenue increased 23% to £10.2m (2016: £8.3m)
- Adjusted EBITDA* increased 14% to £4.4m (2016: £3.9m)
- Adjusted operating profit* increased 8% to £3.8m (2016: £3.5m)
- Profit before tax increased 33% to £4.3m (2016: £3.2m)
- Management Service Fees increased 20% to £8.3m (2016: £6.9m)
- EPS increased 9% to 14.2p (2016: 13.0p)
- Cash at year end of £2.6m (2016: £2.0m) and bank debt of £2.5m (2016: £3.4m)
- Proposed final dividend of 5.4p, for a total 2017 dividend of 7.5p, a 15% increase over last year (2016: 6.5p)
*Before exceptional items and share-based payment charges
- Company name changed to reflect the transition to a multi-brand franchisor
- Despite unexpected management disruption EweMove traded profitably in H2
- New brand leadership team appointed
- Expanding UK network with 403 offices (2016: 377), comprising 283 traditional brands and 120 EweMove
- Serving c.52,000 tenanted managed properties at the year end (2016: c.48,000)
- Recruited six new franchisees for the traditional brands, and 31 new franchisees for EweMove
- Lettings accounts for 70% of Management Service Fees (2016: 74%)
- New websites for the traditional brands delivered a 265% increase in leads Q4 2017 versus Q4 2016
Ian Wilson, Chief Executive Officer of The Property Franchise Group, commented:
“We are very pleased to have delivered another year of strong growth for our stakeholders, particularly as the property industry has continued to be a tough environment to operate in. Our traditional brands have performed well across sales and lettings, and it is pleasing that this lettings growth was achieved both organically and through the assisted acquisition of local competitors’ portfolios by our franchisees.
“Our decision to acquire the online player EweMove has proven to be rewarding, with the business delivering significant revenue growth to the Group this year, as well as providing us with the digital marketing insight to leverage better performance in our traditional high street brands. EweMove remains a highly trusted brand, its ‘no sale, no fee’ model is popular with customers and provides a differentiator in the online market. As we continue to add experienced estate agents to the EweMove network, we are excited by the opportunity to build up our share of the online estate agency market.
“Our financial position is robust with a strong balance sheet, a relatively low level of gearing and high levels of cash generation. This together with our franchise model, weighting towards lettings and multifaceted growth strategy leaves the Group well-positioned to withstand developments within the industry and to capitalise on opportunities that arise.”