Hunters Property PLC Trading Statement (7657R)
14 December 2016 - 6:00PM
UK Regulatory
TIDMHUNT
RNS Number : 7657R
Hunters Property PLC
14 December 2016
14 December 2016
Hunters Property PLC
("Hunters" or "the Group")
Trading update
Hunters, one of the UK's largest national sales and lettings
agency and franchise businesses, is pleased to provide the
following trading update.
The strong performance that we reported at the time of our
interim results in September has continued in the second half of
the year, despite the well-publicised uncertainty in the UK housing
market in the wake of the government's changes to stamp duty
earlier in the year and the UK's decision to leave the EU. The
Board expects trading for the full year to be significantly ahead
of last year and slightly ahead of the Board's expectations.
The recruitment of franchisees and roll-out of new branches is
on-track to exceed 30 or more new branches for the third
consecutive year. The Company will continue to help independent
businesses join the Hunters network and take advantage of the
Hunters systems, with the intention of developing their (and our)
income streams. In 2015, agents who converted to Hunters, and for
whom 2015 was their first full calendar year, grew their turnover
on average by 29%.
Network Income to 31 October 2016 was almost GBP29 million
(October 2015: GBP24.3 million) split 58/42 between South and
North. Lettings income over this period increased by 18% compared
to the same period last year. Q4 2016 has started with a strong
pipeline of sales, lettings and scheduled branch openings,
reflecting the strength of Hunters' proposition to franchisees. As
at 31 October our network comprised 180 branches; 11 owned and 169
franchised.
The Board continues to monitor and review the Government's
proposal to ban tenant fees. The Company has a strong sales bias
(72% of Group revenues) and is therefore confident it can manage
and adapt accordingly. The Board is aware that the industry
experienced a similar situation in Scotland in 2012 where the
industry adapted to the change(s) without long-term damage to
profitability.
To the end of 2016 and looking to 2017 the Board believes that
the skills and reputation of the Group's experienced management
team and its track record of success will continue to attract
high-quality individuals and businesses to the Group. The Group
already has a number of branch openings scheduled for the remainder
of 2016 and into Q1 2017. The Board confidently expects significant
further network expansion during 2017 through attracting
high-quality franchisees. The Board continues to review strategic
acquisitions.
It is the Board's intention on the back of the full year results
to look to increase its final dividend as part of its progressive
dividend strategy.
The Company expects to announce its full year results on or
around the 26 April 2017.
For further information please contact:
Hunters Property PLC
Glynis Frew, Chief Executive
Officer
Ed Jones, Chief Financial
Officer 01904 756 197
Numis Securities
Stuart Skinner, Paul
Gillam (Nomad)
Tom Ballard (Corporate
Broking) 020 7260 1000
Smithfield Consultants
Alex Simmons 0207 360 4900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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