18 Nov 2015 07:00
For Immediate release 18 November 2015
BELVOIR LETTINGS PLC
(the "Company" or "Belvoir")
Acquisitions in Southampton and Brighton and Hove
Belvoir Lettings plc (AIM: BLV), one of the UK's largest property franchises, is pleased to announce two recent franchisee-led acquisitions, both of which were financially supported by Belvoir.
The Brighton and Hove Belvoir franchise, which took over that office less than a year ago, has acquired a property portfolio which almost doubles the size of their business. The acquisition was supported by a £40,000 loan from Belvoir. Similarly, the Belvoir Southampton franchise, which has been in operation for two years, has completed on the acquisition of Langford Charles Ltd, a lettings and estate agency, supported by a Belvoir loan of £78,500. Both loans are repayable over three years.
Together these acquisitions increase the Belvoir network revenue by around £250,000.
These two acquisitions are in line with Belvoir's policy of providing partial funding to support Belvoir franchisees to expand their business and will jointly add almost £30,000 in recurring MSF (Management Service Fees), the Company's main revenue stream from its franchisees. Growth through franchisee-led acquisitions contributed 6.9% of MSF growth in the first half of 2015 and is a key element of Belvoir's growth strategy. Interest charged against the loans will give rise to an additional income stream of around £10,000 per annum.
Mike Goddard, Chairman and CEO of Belvoir commented:
"These two franchisee-led acquisitions are another example of the Company continuing to deliver on its growth strategy of expanding the network organically and by acquisition. The Belvoir Group has had a fantastic year so far with the acquisition of Newton Fallowell and Goodchilds, two significant franchised networks and it is really exciting to see that our franchisees are also taking the initiative to build the network further themselves by consolidating smaller branches across the UK. "
For further details:
Belvoir Lettings PLC Mike Goddard, Chairman and CEO Louise George, Finance Director |
01476 584900 investorrelations@belvoirlettings.com |
Cantor Fitzgerald Europe Rick Thompson, David Foreman, Corporate Finance David Banks, Tessa Sillars, Corporate Broking |
0207 894 7000 |
Buchanan Charles Ryland, Gabriella Clinkard, Madeleine Seacombe |
0207 466 5000 |
About Belvoir Lettings PLC
Belvoir was founded in February 1995 by Mike and Stephanie Goddard and operates from its Central Office in Grantham, Lincolnshire. Belvoir successfully listed on the AIM market of the London Stock Exchange on 21 February 2012.
Belvoir is recognised as one of the largest specialist lettings agency franchises in the UK, with 164 outlets nationwide. The company offers a specialist service in property rental, property management, residential lettings, buy to let and now property sales, in selected locations. Each local Belvoir office is owned and personally managed by local owners, operating under licence from Belvoir Property Management (UK) Ltd.
Belvoir was officially awarded the Best Lettings Agency Franchise Gold Award at the 2015 Agency of the Year Awards in association with The Sunday Times & The Times for the 5th time in the 6 years of the awards history.
In July 2015 Belvoir acquired Newton Fallowell Ltd, a network of 30 franchised and one corporate estate and lettings agencies and in October Belvoir acquired Goodchilds Estate Agents and Lettings Limited, a network of 16 property sales and lettings branches located across the West Midlands. The Company is now committed to developing a multi-brand franchising strategy. Across the networks, the Group operates through 211 outlets.