Belvoir Lettings PLC AGM Trading Update (1752G)
25 May 2017 - 4:01PM
UK Regulatory
TIDMBLV
RNS Number : 1752G
Belvoir Lettings PLC
25 May 2017
For Immediate Release 25 May 2017
BELVOIR LETTINGS PLC
(the "Group" or "Belvoir")
AGM Trading Update
Belvoir Lettings PLC (AIM:BLV), one of the UK's largest property
franchises, issues the following trading update ahead of the
Group's General Meeting to be held at 10.00a.m. today:
Trading during the first quarter of the current financial year
has been in line with the Board's expectations. Group revenue was
up 19% on the prior year, mainly reflecting the acquisition of
Northwood in June 2016. Management service fees ("MSF") on a
comparable basis were up 5%, with an increase in lettings of 8%
being partially off-set by a small reduction in sales of 4%
following the strong Q1 in 2016 ahead of the Stamp Duty change.
Within the Group's main estate agency network, Newton Fallowell,
the fall in property sales resulting from the surge in transactions
in March 2016 was 13% which compares favourably to elsewhere within
the sector. The overall impact on sales MSF for the Group was
mitigated further by the Belvoir network achieving strong growth in
sales of 33% as the network continues to roll-out estate agency as
a means to broadening and strengthening its revenue streams.
Revenue growth reflected an increase of GBP0.7m arising from
Northwood and also a reduction of GBP0.2m following the franchising
of six corporate-owned offices between September 2016 and March
2017.
In the year to date, the Group has recruited three new franchise
owners; one will be acquiring an existing Belvoir office, one is
completing on a large portfolio acquisition in a new territory to
give him an enhanced start and the other has taken on the
previously corporate-owned Belvoir Devizes. In addition,
corporate-owned Belvoir Burton was sold to the adjacent Tamworth
franchisee.
The Board has provided further focus on its portfolio
acquisitions strategy by conducting a series of seminars for
franchisees across all four brands. Franchisees have already
completed on three portfolio acquisitions in the year to date and
there is a healthy pipeline of further opportunities as some of the
smaller independent lettings agents choose to withdraw from the
sector in the face of a ban on tenant fees and increased
legislation.
Mike Goddard, Chairman and CEO, commented:
"The Group has seen a healthy start to 2017 with our underlying
growth in MSF at 5% and our total group revenue up 19%. The Board
has been working closely with franchisees providing the support
they need to develop additional revenue streams and to take
advantage of the growth opportunities that will arise from
anticipated changes in the sector."
For further details:
Belvoir Lettings PLC 01476 584900
Mike Goddard, Chairman and CEO investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Phil Davies, Michael Reynolds
(Corporate Finance) 0207 894 7000
Mark Westcott, Caspar Shand-Kydd (Sales)
Buchanan
Charles Ryland, Vicky Hayns, Madeleine Seacombe 0207 466 5000
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995, Belvoir is the UK's largest property franchise
group, with over 300 offices operating as residential lettings and
property sales agents nationwide. Since listing on AIM in February
2012 (BLV.L), Belvoir has continued to diversify its core business
offer in lettings by broadening into property sales. Operating from
its Central Office in Grantham, Lincolnshire, the Group now offers
a range of specialist services in property rental, property
management, residential lettings, buy to let and property
sales.
Belvoir's core revenue is derived from Management Service Fees
(MSF); a reliable recurring revenue model which allows the Group to
offer franchisees significant support and advice.
Belvoir is a multi-brand franchisor operating 4 brands including
the original Belvoir network of 171 offices, the East
Midlands-based Newton Fallowell network of 30 offices, the West
Midlands-based Goodchilds network of 14 offices and Northwood, a
national network of 87 offices. The Group manages 56,000 properties
and reported revenue of GBP9.9m in 2016 making Belvoir the largest
property franchise group in the UK.
Belvoir continues to grow organically by delivering award
winning service, prioritising franchisee recruitment and supporting
franchisee acquisitions. In recognition, Belvoir was awarded the
"Best Lettings Agency Franchise Award" at the 2016 Agency of the
Year Awards for the sixth time since the awards started seven years
ago.
The Company remains committed to diversifying its brand
portfolio, utilising the Group's strong franchising expertise and
infrastructure, in order to capitalise on a consolidating
market.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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