(Sharecast News) - Property and financial service franchise Belvoir Group announced the acquisition of two financial services businesses on Tuesday - MAB South West and BMA Bristol - as part of its ongoing growth strategy.
The AIM-traded firm said the transactions were the latest step in its strategic expansion in the mortgage and financial advice market, particularly in the south west of the UK.
Both BMA and MAB SW operate under the Mortgage Advice Bureau brand, as appointed representative firms of Mortgage Advice Bureau, a wholly-owned subsidiary of the AIM-listed Mortgage Advice Bureau Holdings.
Belvoir said the acquired firms provide mortgage and financial services advice via a combined network of 41 advisers.
BMA is based in Bristol, while MAB SW operates out of Plymouth, enabling Belvoir to extend its reach across the south west region.
The acquisitions were completed for a combined total net consideration of £2.1m in cash, with Belvoir's subsidiary Brook Financial Services acquiring the entire issued share capital of both BMA and MAB SW.
Tim Wood, financial services director of Brook, would oversee the operations of the newly acquired businesses, under the supervision of Michelle Brook, managing director of Brook and executive director of the Belvoir Group board.
In terms of financial performance, MAB SW generated £1.5m in revenue, £0.1m in pre-tax profits, and had net assets of £0.2m for the year ended 30 September last year.
BMA meanwhile reported revenue of £1.8m, pre-tax profits of £0.3m, and net assets of £0.1m for the year ended 31 December.
The acquisitions were anticipated to be immediately accretive to earnings, contributing around £0.6m per annum to Belvoir's profit before tax.
"We are delighted to announce the acquisitions of BMA Bristol and MAB South West, which extend our network of experienced financial advisers across the south west, supporting both our franchisees at a local level, as well as servicing leads from independent agents," said chief executive officer Dorian Gonsalves.
"The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid.
"However, the board is confident that given the strong client banks within these businesses, they can be developed further and be positioned to take advantage of future upsides in the new purchase and remortgage markets."
At 1100 BST, shares in Belvoir Group were up 1.4% at 218p.
Reporting by Josh White for Sharecast.com.
