Belvoir Lettings PLC Franchisee Led Acquisitions-Further Growth (3596P)
31 August 2017 - 4:00PM
UK Regulatory
TIDMBLV
RNS Number : 3596P
Belvoir Lettings PLC
31 August 2017
For Immediate Release 31 August 2017
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Franchisee Led Acquisitions-Further Growth
Belvoir lettings plc (AIM:BLV), the UK's largest property
franchise, is pleased to announce that the Group has secured
further growth and an increase in the number of properties it has
under management following twelve franchisee-led acquisitions
during 2017 across the country. Following a series of acquisition
roadshows to franchisees earlier this year, the Group strategy of
growth through its Assisted Acquisitions programme, already
familiar to the Belvoir network, has now been embraced by
franchisees from the recently acquired networks. Of the twelve
acquisitions, six were secured by Belvoir, five by Northwood, and a
further one by Newton Fallowell.
These acquisitions which are in London, Epsom, East Horsley,
Newbury, Trowbridge, Hereford, Telford, Hinkley, Lincoln, Bolton
and Oldham, have increased network revenue by GBP1,732,000 at a
total deal cost of GBP2,116,000. Together, the acquisitions will
increase MSF (Management service Fees), which is Belvoir's main
revenue stream from its franchisees, by GBP188,000 in a full year
and GBP83,000 in the current financial year.
Interest receivable from the part funding under the Assisted
Acquisitions programme is another source of income for the Group.
With Belvoir having contributed GBP322,000 of the funding required,
the Group will receive a further GBP29,000 p.a. in interest.
Belvoir now represents 57,637 properties under management
following the addition of 1,310 from these latest acquisitions.
Dorian Gonsalves, CEO of Belvoir commented;
"I am delighted that our networks have been very active,
supported strongly by available financing and resource from our
Central Office operations. The Assisted Acquisition programme has
contributed significantly to Belvoir's continued growth over recent
years and we now expect to exceed the additional network revenue
from acquisitions set by the Board for 2017. We have further such
deals currently with lawyers and other opportunities under review,
with the aim of enabling our franchisees to benefit from
consolidation in the sector. Belvoir is here to support our
franchisees entrepreneurial growth ambitions, which will benefit
the Group and our shareholders alike."
For further details:
Belvoir Lettings PLC 01476 584900
Dorian Gonsalves, CEO investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Phil Davies, Will Goode 0207 894 7000
Buchanan
Charles Ryland, Vicky Hayns, Madeleine Seacombe 0207 466 5000
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with over 300
offices across four brands offering a range of specialist services
in property rental, property management, residential lettings, buy
to let and property sales. With its Central Office in Grantham,
Lincolnshire, the Group manages over 57,000 properties and reported
revenue of GBP9.9m in 2016 making Belvoir the largest property
franchise group in the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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