LONDON (Alliance News) - Belvoir Lettings PLC Friday said it has raised GBP5.35 million by placing 3.3 million shares at 160 pence with new and existing investors, allowing it to expand its own offices and support its franchisee acquisition programme.
Belvoir is a specialist lettings company, but is also now experimenting with an estate agency pilot scheme in 10 of its franchises after the economic downturn pushed more estate agencies into the lettings business due to a lack of buying and selling activity in the market. That pushed up competition for Belvoir.
However, it's also still looking to expand the lettings business. It currently has 142 franchised offices and a further two trading under the "Student Living" brand it also owns.
Finance director Carl Chadwick last month told Alliance News that the company's own lettings offices are more profitable than its franchises. Profits in 2012 were lower than the company had hoped because of the costs associated with listing on AIM, Chadwick conceded, but the decision was a good one because the funds raised put the company on a more stable footing, in turn giving more surety to the franchisees and encouraging them to invest in their businesses as well. The listing also raised the company's profile and gave it the funds to make the acquisitions as banks became more cautious about lending to businesses.
Belvoir Lettings shares were down 3.4% at 169 pence on AIM early Friday as the placing increased its share base.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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