Belvoir Lettings PLC Update on the Brook acquisition (0017Z)
12 December 2017 - 6:00PM
UK Regulatory
TIDMBLV
RNS Number : 0017Z
Belvoir Lettings PLC
12 December 2017
For immediate release 12 December 2017
BELVOIR!
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Update on the Brook acquisition
Belvoir lettings plc (AIM:BLV), the UK's largest property
franchise group, is pleased to provide an update on the successful
performance and assimilation of Brook Financial Services, following
its recent acquisition by Belvoir in July 2017.
Brook Financial Services ('Brook') was acquired for a total
consideration of GBP2.0 million with a view to achieving materially
greater penetration of Belvoir's client base and increasing the
financial services fees generated on property sales across all of
Belvoir's multi-brand networks.
In the past two months Brook has reported GBP570,000 of net
written business which is up 57% on October and November 2016 and
is running at over 40% ahead of the average business achieved in
the first seven months of 2017 prior to being acquired by
Belvoir.
Brook currently has three new mortgage advisers in training and
is actively recruiting further advisers to provide additional
capacity. To date the focus has been on the Group's predominantly
estate agency network, Newton Fallowell, with Brook now working
with 17 offices within that network where previously no financial
services had been offered. Of the 39 Newton Fallowell offices,
including 8 which had existing arrangements, 66% now offer
financial services and other mortgage related products. In
addition, Brook has continued to grow its portfolio of independent
estate agents which act as introducers to Brook. Increased revenue
resulting from a greater number of policies being written and a
higher case value is being reported in line with the Group's
projections as at acquisition.
Dorian Gonsalves, CEO of Belvoir, commented:
"When we acquired Brook, we were confident that it would be able
to deliver strong growth of its existing business whilst increasing
its capacity to provide financial services initially to the Newton
Fallowell network before extending this to the wider Belvoir
Group.
The roll out to the Newton Fallowell offices is underway and
from January 2018, Brook will start to work with some of the more
sales-focused Belvoir and Northwood offices. This is a key strategy
for growth for both our franchisees and the Group.
The recent significant growth, against the background of falling
mortgage approvals as the housing market is perceived to be cooling
overall, is evidence of Brook's ability to outperform the
market."
Enquiries:
Belvoir Lettings plc
Dorian Gonsalves, Chief
Executive Officer
Louise George, Chief Financial
Officer 01476 584 900
Cantor Fitzgerald Europe
Rick Thompson
Philip Davies
Will Goode 0207 894 7000
Buchanan
Charles Ryland
Vicky Hayns
Madeleine Seacombe
belvoir@buchanan.uk.com 0207 466 5000
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 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.
Belvoir's core revenue is derived from Management Service Fees
(MSF); a reliable recurring revenue model through which the Group
offers franchisees significant support and advice.
In 2015 Belvoir launched its multi-brand franchising strategy
and now owns Newton Fallowell Limited in the East Midlands,
Goodchilds Estate Agents and Lettings Limited in the West Midlands
and Northwood GB Limited, a nationwide network. In total, the Group
operates from 300 territories within the UK. In July 2017, the
Group acquired Brook Financial Services Ltd, a mortgage broker and
financial service provider.
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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