LONDON (Alliance News) - Belvoir Lettings PLC said on Monday its 2015 trading was in line with market expectations, after having implemented its strategy to become a multi-brand franchising group.
In a trading update, the company said it had delivered growth for the year, driven by a surge in property sales stemming from its acquired businesses, Newton Fallowell and Goodchilds. Revenue from property sales was up 60% to GBP1.4 million for the year ending December 31, versus GBP0.8 million in 2014, with its acquisitions meaning 23% of revenue now comes from sales, compared with 16% in 2014.
Belovir said its growth should not be hampered by stamp duty increases, which will affect higher value properties, as it should not impact the areas in which it operates, adding that demand in the current rental climate means opportunities remain strong for the company.
It said it is likely there will be a modest capital appreciation across all residential property of 4.0% to 5.0% and rental increases of 2.0% to 3.0%.
Belvoir said it had a strong year end bank balance of GBP2.7 million for 2015, versus GBP1.5 million in 2014, and its group revenue increased to GBP6.8 million, from GBP6.5 million.
It said it was confident in the future of property investment and buy-to-let remains high.
"We will see the benefit of a full year's trading from our recent acquisitions and we will be positioned to take advantage of further consolidation within the industry," said Chairman and Chief Executive Mike Goddard.
Belvoir shares were untraded on Monday morning, having last traded at 99.00 pence.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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