The Property Franchise Group trading in line with expectations

(Sharecast News) - The Property Franchise Group said on Thursday that it continued to trade in line with board expectations, supported by recurring revenues across its franchise and licensing divisions.

The AIM-traded multi-brand property franchisor said its resilient and highly cash-generative business model was providing good visibility over future earnings and helping to mitigate shorter-term cyclical movements in the housing market.

It said the implementation of the Renters' Rights Act in May was expected to increase the regulatory and operational burden on self-managed landlords, creating an opportunity for professionally managed operators such as TPFG.

The group said it was already seeing encouraging levels of enquiries from self-managed landlords seeking support with compliance and property management.

The board said that represented an attractive medium-term growth opportunity for TPFG's franchise network.

TPFG also reported continued strategic progress in developing its platform model.

During the year to date, it completed the acquisition of Smart Advice Financial Solutions, strengthening its financial services capabilities.

The group also invested in Meridian HoldCo, the parent company of Legal & General Surveying Services, which TPFG said broadened its exposure across the wider property transaction ecosystem.

The board said it remained encouraged by the strategic opportunities created by the continued development of the platform model, which it expected to support long-term earnings quality and diversification while retaining a resilient balance sheet.

TPFG said it remained confident in its long-term positioning and ability to deliver on strategic opportunities, while continuing to take a measured and disciplined approach given the broader macroeconomic environment.

At 0908 BST, shares in the Property Franchise Group were up 0.18% at 478.35p.

Reporting by Josh White for Sharecast.com.

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