BLV.L Regulatory News (BLV)

BELVOIR LETTINGS PLC

(the "Group" or "Belvoir") 

AGM Trading Update

Belvoir Lettings PLC (AIM:BLV), one of the UK's largest property franchises, issues the following trading update ahead of the Group's General Meeting to be held at 10.00a.m. today:

Trading during the first quarter of the current financial year has been in line with the Board's expectations. Group revenue was up 19% on the prior year, mainly reflecting the acquisition of Northwood in June 2016. Management service fees ("MSF") on a comparable basis were up 5%, with an increase in lettings of 8% being partially off-set by a small reduction in sales of 4% following the strong Q1 in 2016 ahead of the Stamp Duty change. Within the Group's main estate agency network, Newton Fallowell, the fall in property sales resulting from the surge in transactions in March 2016 was 13% which compares favourably to elsewhere within the sector. The overall impact on sales MSF for the Group was mitigated further by the Belvoir network achieving strong growth in sales of 33% as the network continues to roll-out estate agency as a means to broadening and strengthening its revenue streams.

Revenue growth reflected an increase of £0.7m arising from Northwood and also a reduction of £0.2m following the franchising of six corporate-owned offices between September 2016 and March 2017.

In the year to date, the Group has recruited three new franchise owners; one will be acquiring an existing Belvoir office, one is completing on a large portfolio acquisition in a new territory to give him an enhanced start and the other has taken on the previously corporate-owned Belvoir Devizes. In addition, corporate-owned Belvoir Burton was sold to the adjacent Tamworth franchisee.

The Board has provided further focus on its portfolio acquisitions strategy by conducting a series of seminars for franchisees across all four brands. Franchisees have already completed on three portfolio acquisitions in the year to date and there is a healthy pipeline of further opportunities as some of the smaller independent lettings agents choose to withdraw from the sector in the face of a ban on tenant fees and increased legislation.

Mike Goddard, Chairman and CEO, commented:

"The Group has seen a healthy start to 2017 with our underlying growth in MSF at 5% and our total group revenue up 19%. The Board has been working closely with franchisees providing the support they need to develop additional revenue streams and to take advantage of the growth opportunities that will arise from anticipated changes in the sector."

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About Belvoir Lettings PLC

Founded in 1995, Belvoir is the UK's largest property franchise group, with over 300 offices operating as residential lettings and property sales agents nationwide. Since listing on AIM in February 2012 (BLV.L), Belvoir has continued to diversify its core business offer in lettings by broadening into property sales. Operating from its Central Office in Grantham, Lincolnshire, the Group now offers a range of specialist services in property rental, property management, residential lettings, buy to let and property sales.

Belvoir's core revenue is derived from Management Service Fees (MSF); a reliable recurring revenue model which allows the Group to offer franchisees significant support and advice.

Belvoir is a multi-brand franchisor operating 4 brands including the original Belvoir network of 171 offices, the East Midlands-based Newton Fallowell network of 30 offices, the West Midlands-based Goodchilds network of 14 offices and Northwood, a national network of 87 offices. The Group manages 56,000 properties and reported revenue of £9.9m in 2016 making Belvoir the largest property franchise group in the UK.

Belvoir continues to grow organically by delivering award winning service, prioritising franchisee recruitment and supporting franchisee acquisitions. In recognition, Belvoir was awarded the "Best Lettings Agency Franchise Award" at the 2016 Agency of the Year Awards for the sixth time since the awards started seven years ago.

The Company remains committed to diversifying its brand portfolio, utilising the Group's strong franchising expertise and infrastructure, in order to capitalise on a consolidating market.