3 Jan 2018 07:00
For Immediate Release 3 January 2018
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Assisted Acquisitions Update
Belvoir lettings plc (AIM:BLV), the UK's largest property franchise, is pleased to report that it exceeded its 2017 target for portfolio acquisitions by its franchisees ('Assisted Acquisitions'), a core part of Belvoir's growth strategy.
During 2017, franchisees completed on 23 transactions under the Belvoir Assisted Acquisitions programme increasing the annualised network revenue by over £3.3 million and exceeding the £3.0 million target set by the Board. These acquisitions have added an ongoing £350,000 p.a. of recurring Management Service Fees (MSF), the main revenue stream to the Group, and 2,264 managed properties, increasing the portfolio by 4%. The Belvoir Group now represents over 58,000 managed properties.
Following the acquisition of Northwood in June 2016, over half of the Northwood franchisees have registered onto the Assisted Acquisitions programme, a service that had not been available to them under the previous ownership. Of the 23 deals completed in 2017, 14 were from the Northwood network, one from Newton Fallowell and the remaining eight from Belvoir. The Group contributed £351,000, approximately 10% of the total consideration, by means of loans to support these transactions. Whilst the Group is willing to advance up to 30% of the deal value, most franchisees utilised their own cash reserves or sourced funds from other loan providers.
Dorian Gonsalves, CEO of Belvoir, commented;
"The Assisted Acquisitions programme has proved to be very popular within the recently acquired Newton Fallowell and Northwood networks. Of the deals completed in 2017, over two-thirds were undertaken by these networks, who had not previously benefitted from the expertise and financial support that has been available to the Belvoir network for several years.
In addition to exceeding our target completions for 2017, we ended the year with a very robust pipeline of deals currently with lawyers which we would expect to complete in the first quarter of 2018. The appetite for securing portfolio acquisitions reflects the entrepreneurial spirit of our franchisees who are adapting to changes within the sector and seeing opportunity for growth as the sector consolidates."
For further details:
Belvoir Lettings PLC Dorian Gonsalves, Chief Executive Officer Louise George, Chief Financial Officer | 01476 584900 investorrelations@belvoirlettings.com |
Cantor Fitzgerald Europe Rick Thompson, Phil Davies, Will Goode | 0207 894 7000 |
Buchanan Charles Ryland, Vicky Hayns, Madeleine Seacombe | 0207 466 5000 |
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise group with 300 offices across four brands offering a range of specialist services in property rental, property management, residential lettings, buy to let and property sales. With its Central Office in Grantham, Lincolnshire, the Group manages over 58,000 properties and reported revenue of £9.9m in 2016 making Belvoir the largest property franchise group in the UK.