LONDON (Alliance News) - Belvoir Lettings PLC Wednesday reported an increase in pretax profit in 2014, as revenue growth buoyed by higher management service fees and the start of a property sales business more than offset higher administrative costs.
The lettings franchiser, which also has own-run outlets, said its pretax profit grew 10% to GBP1.8 million in 2014, as revenue increased by 12% to GBP6.5 million. The company's dividend for the year was maintained at 6.8 pence per share.
Administrative expenses rose 14% to GBP4.9 million, including higher central office salaries and the cost of operating nine corporate outlets during the year. It has also brought outsourced professional services fees back in house. The company also blamed "one-off costs" of GBP325,000, driven by a GBP205,000 write-off following a review of whether some of its assets could be recovered, as well as a GBP120,000 payment to a departing director.
"Our strategic goal to grow organically and to accelerate this growth by seeking out bolt-on acquisitions has enabled the network to increase its presence throughout the UK. Furthermore, the addition of a property sales service to our offering is proving to be very popular, and we are delighted to report the positive impact this is already having on our turnover and profitability," Mike Goddard, chief executive, said in a statement.
"Looking ahead to the coming years Belvoir is set to continue its growth strategy, strengthen its presence in the UK, and constantly seek out acquisition opportunities to accelerate this growth," Goddard added.
Belvoir shares were up 2.6% at 117.00 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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