LONDON (Alliance News) - Belvoir Lettings PLC on Monday reported an increase in pretax profit in 2015, after revenue was boosted by the increased service offering from its acquired businesses and by higher management-service fees.
The AIM-listed lettings and estate agency company said pretax profit was GBP2.2 million for the year ended December 31, up from GBP1.8 million in 2014, after revenue grew 19% to GBP6.9 million from GBP5.9 million.
Belvoir said the revenue increase was underpinned by a 60% rise in property sales to GBP1.4 million from GBP800,000, as well as a 25% increase in management service fees to GBP4.0 million from GBP3.2 million. The results reflected organic growth of 12.5% from the Belvoir network, it said, and a further 12.5% growth from the two franchised networks acquired in the second half of the year.
Management fees are collected by Belvoir as a royalty for providing a brand, a system, and the know-how for a franchisee to operate a profitable business at a local-office level, and the number of franchise owners trained to offer a property sales service increased to 111 by the year end from 30 a year earlier. Belvoir said it expects this number to increase by a further 41 franchisees in 2016.
The company's dividend for the year was maintained at 6.8 pence per share.
Belvoir added it was currently trading in line with management expectations.
"Looking to the future, I expect Belvoir to be at the forefront of further consolidation within the property franchising industry as the benefits of centralised franchising expertise and economies of scale become more attractive," said Chief Executive Mike Goddard.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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