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Quite interested in establishing a position in this one. Valuation is near levels that appeal to me. Just trying to do a bit of analysis on what the business might make this year to get comfortable its not in any risk of going under (which I don't think it is). Think it is only wise to heavily discount MSF from lettings and nearly completely discount sales MSF and income from financial products for 2020.
Trying to get a feel for what makes up the overhead base to see what, if anything, can be cut. Of the £7.5m o/heads in 2019, £5m plus relates to staff. Belvoir has 113 heads on the payroll - much higher than I was expecting. Particularly when you compare to Property Franchise Group which only has about 50 heads!
Would love to know what are they all doing and if the business will change its cost base post Covid...
I expect a bounce back from this one, strong business here, hit by the over selling last week.
Nice timing! Definitely one for the casual "By the way..." to the wife!
Great update this morning, and the usual restrained BB...
"The Group has achieved a year of outstanding growth with revenue up 43% to £19.5m* (2018: £13.7m) and consequently the Board expects that the performance for the year, including profit before tax, will be comfortably ahead of management's expectations.
The Group's diversification into financial services delivered significant revenue growth of 148% in 2019...
The Group continues to operate from a sound financial platform and is highly cash generative. Net debt as at 31 December 2019 had reduced significantly to £6.9m* (2018: 9.6m)."
Glad I took the opportunity to buy some at 105p this morning for my wife's SIPP. Great income stock around 6.85% at that price.
Yes very solid and a good entry price Very few failures amongst the franchisees In contrast to Ewemove .
TPFG in their recent update announced increased revenue for Ewemove Highlighting them as a star performer
The devil is in the detail. Since May 2018 Ewemove have lost a staggering 23 franchisees and the rate of failure doesnt seem to be stopping Double figure failures this year and Newmarket this week
Revenue lost forever !
I had a large position in SAVP a few months ago but sold out because I had lost patience.
However, I now believe the risk/reward at the current price is worth giving them a small punt.
I still think there is still a risk that there will be a fund raise after deal closed.
Hence, I will not add further until there is clarity
They seem to be bucking the trends, in a good way:
"The Board is delighted to report that trading during the first quarter of the current financial year has been robust. Belvoir is outperforming the three key markets in which it operates, namely residential lettings, property sales and financial services. Growth in Management Service Fees ("MSF") from lettings of 6.3% was noticeably ahead of the reported year-on-year rental index of 1.2%, growth of 10.3% from sales MSF compared with a drop of 1.5% in property transactions, and net banking from financial services (on a like-for-like basis) was up 20%.
Consequently, the Board is confident of meeting market expectations for the year ending December 2019."
Nice divi, forward p/e <9, peg < 0.6, and great momentum: I have high hopes this has a long way to go.
Goddards shares now looking to come into play Watch this space
Apologies, c£7m owed. Results due tomorrow. Should offer a decent dividend.
https://estateagentnetworking.co.uk/chris-watkins-chats-re-belvoir-franchise/
https://estateagentnetworking.co.uk/gloucestershire-mortgage-business-sells-for-3-6-million/
This is a lettings and estate agency.
PER = 7.5
Yield = 7%
No debt
Will be impacted by rent reforms, but in a minimal way.
Can buy at 92
http://www.propertyindustryeye.com/eric-walker-is-promoted-to-take-charge-of-belvoir-as-part-of-management-changes/
Great appointment. Eric instrumental in the success of Northwood
Looks like Canacord having taken over Belvoir's' major corporate shareholder Hargreave Hale have decided to reduce their holdings .Wonder where they are intending to stop!
http://www.propertyindustryeye.com/franchising-giants-ready-for-mass-exit-from-market-as-legislation-bites-smaller-independents/ Maybe Belvoir there to pick up the pieces
Results at Belvoir Letting more than alright as earnings grew by 56%. However, this figure is a �one-off� because future earnings growth will slow to single-digit growth for both 2018 and 2019. Still, the brokers are forecasting the shares will rise by 41.5% to �1.45 per share. For more daily analysis on the Belvoir Lettings, along with the Card Factory and Mission Marketing. http://bit.ly/2v85C4c
Maybe Bricks will come and swoop in and takeout both Belvoir and TPFG
Secured further growth and an increase in the number of properties it has under management following 12 franchisee led acquisitions during 2017. Of the 12 acquisitions, six were secured by Belvoir, five by Northwood, and a further one by Newton Fallowell. It now represents 57,637 properties under management, following the addition of 1,310 from these latest acquisitions. With more people renting than buying going forward, this will benefit the company.
Rolling along quite nicely here .Quite impressed with management and their acquistions Definite takeout material and Bricks must be casting an envious eye.Very happy to remain invested
Pretty slim profis even factoring in the acquistion costs of Northfield especially on a per office basis Prospects of someone like Purplebricks moving in looking a little remote
Yes I think this is coming into play ..Old Winco the majority sharehoder might have his eye on a vintage Spitfire
In the last week there has been £200k in buys and £10k in sells. Something brewing? Looks like it, I'm in today too.
Decided to buy some in .Been watching closely and Im still taking a view that if Bricks are looking to engage in the sector BLV might be the one! .Nothing tangible to support that view Bricks SP is being pumped which indictates they are priming up for a cash call and will have some money to spend beefing up their miserable letttings side Why not old Winco selling out his stake here Time will tell !!
Have to say Ive developed a creeping respect for Belvotr Initially Very sceptical at first when they listed for one retired Winco and his dog making a dash for cash and moving into the difficlut field of rollout They were the only ones this morning prepared to put their cojones on the line and spell out in pounds,shillings and pence the possible effects of saying goodbye to tenants fees Fair does to them smacks of integrity and straightforwardness An officer and a gentleman!!