BLV.L Share News (BLV)

The market reacted very harshly to news from Belvoir Lettings that growth in managed services fees (MSF) would be lower than forecast. This was despite the year-end trading update from the AIM-listed lettings franchisor detaling a 44% increase in reveneues to £5.8m and a doubling in second half profits over the first to give an annual pre-tax profits of £1.6m.However, Belvoir admitted the peak of insurance commissions anticipated to be received before the year-end were delayed in the short-term due to a change of preferred broker, which resulted in delayed commissions to the franchisees and hence affected the timing of MSF received. As income was deferred it adversely affected the current year profitability."It is hoped that the new insurance product set is now much improved in quality and should sell in greater numbers going forward," the company said.Irrespective of the delay, MSF increased to £3.1m from £2.85m during the year, an uplift of 8.8% that was below management's budgeted expectations of 10%.Belvoir proposed an increased final dividend of 3.4%, resulting in a 17% increase of the total dividend year-on-year.Shares in Belvoir were down 9% to 151p at 09:35 on Wednesday.OH