(Sharecast News) - Property and financial services franchise Belvoir Group said in an update on Monday that group revenue in its first half increased 11% year-on-year, despite 2021 being an "exceptionally strong" year for the property sector.
The AIM-traded firm said revenue from the property division was up 3%, and management service fees - the core underlying revenue from franchisees - was up 1% year-on-year for the six months ended 30 June.
It said growth from lettings management service fees mitigated the reduction in sales management service fees, as the residential property sales market returned, as expected, to "more normal" transaction levels.
Revenue from the financial service division was up 19%, of which 12% resulted from the July 2021 acquisition of Nottingham Mortgage Services and the May acquisition of Time Mortgages Experts.
The group said its financial services network now consisted of 301 mortgage advisers, up from 243 at the end of the 2021 financial year.
Belboir said it was still achieving a "high rate" of cash conversion, and maintained a "strong" balance sheet with cash balances of £5.2m at the end of the period, up from £5.1m a year earlier, as well as bank loans of £8.3m, narrowing from £9.1m.
Net debt shrunk to £3.1m from £4m year-on-year, but was up £1.8m since the end of 2021, after the acquisition of Mr and Mrs Clarke Limited and The Time Group for initial cash of £3.9m.
As a result, the board said the group was performing well, and was trading in line with management expectations for the year to December.
"Given the stamp duty holiday and the post-lockdown pent-up demand last year, 2021 was always going to be a hard act to follow for the property sector," said chief executive officer Dorian Gonsalves.
"However, the diversity of the group's income streams and the resilience of its franchise business model have enabled Belvoir to achieve underlying growth with increased revenue from lettings and financial services mitigating the shortfall from property sales.
"Meanwhile, the board's ongoing acquisition growth strategy has resulted in further expansion being achieved in both its property and financial services divisions."
At 1020 BST, shares in Belvoir Group were down 0.42% at 236.5p.
Reporting by Josh White at Sharecast.com.
