LONDON (Alliance News) - Belvoir Lettings PLC on Wednesday said its pretax profit was marginally lower in the first half as revenue fell amid the property market a slowdown in the lead-up to the UK General Election in May, but the company said it is expecting a stronger second half.
Belvoir said its pretax profit for the six months to the end of June was GBP747,000, down from GBP773,000 a year earlier as revenue dropped to GBP2.7 million from GBP3.3 million. This was offset by the group's focus on controlling costs in the half, which helped it cut administrative expenses by 11%, owing to a reduced reliance on outsourced professional services and no bad debts in the half.
Management service fees for the company were up to GBP1.8 million from GBP1.5 million and the group's network at the end of the period was 166 outlets, which has now increased to a total of 197.
The company said its pipeline of future franchisees has now stabilised, following a slowdown for the group in the lead up to the General Election in the UK in May. Its estate agency roll-out plans for the full year are on track, and it reiterated that it expects the second half to be stronger than the first, in line with previous years.
Belvoir said it has further franchise-led acquisitions in the pipeline for the second half.
The company has held its interim dividend at 3.4 pence per share.
"We are encouraged that our support of franchisee growth through targeted acquisitions is bearing fruit with a 14% growth in our management service fees. Even more importantly is our move into a multi-brand strategy with the purchase of Newton Fallowell in July, a well-known East Midlands franchise network of 31 offices. The impact of this and our stronger recruitment pipeline will start to show in the second half and underpins our medium-term growth plans," said Chief Executive Mike Goddard.
Belvoir shares were untraded early Wednesday, having last traded at 127.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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