LONDON (Alliance News) - Belvoir Lettings PLC Wednesday said it plans to increase its total dividend for 2013 by 17%, as it expects to report an increase in pretax profit to GBP1.6 million, up from GBP1.4 million in 2012.
The lettings specialist said it will pay an increased final dividend of 3.4 pence per share, up from 2.9 pence per share, resulting in a total dividend of 6.8 pence per share, up from 5.8 pence per share in 2012.
The company said pretax profit in the second half is expected to be double that of the first, reflecting the anticipated second half weighting of trading in the business.
Total revenue for 2013 is expected to rise 44% to GBP5.8 million, from GBP4.0 million in 2012, reflecting a change in mix to more owned lettings outlets which has led to higher costs in relocation and shop fittings.
Belvoir said its estate agency trial has made good progress, with larger members of the trial group reporting house sales and a good reception from buy-to-let landlords.
However, the firm said 2013 hasn't been without its problems, with the peak of insurance commissions it had expected to receive before the year-end delayed due to a major change of preferred broker. This resulted in delayed commissions to the franchisees, which affected the timing of managed service fees received.
Belvour said the changes to its insurance arrangements have included external consultancy costs which meant income was deferred, adversely affecting 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. Irrespective of this managed service fee increase to GBP3.1 million, from GBP2.9 million, an uplift of 8.8%, this is below our own budgeted expectations which were set at 10%," it added.
Belvoir will publish its full year results for the year ended December 31, 2013 on March 26.
The stock was trading at 154.00 pence Wednesday, down 12.00 pence or 7.2%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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