BLV.L Regulatory News (BLV)

For Immediate Release 5 September 2013

BELVOIR! the lettings specialistBELVOIR LETTINGS PLC

(the "Company" or "Belvoir")

Interim Results for the six months ended 30 June 2013

Belvoir Lettings PLC (AIM: BLV), one of the UK's largest lettings franchises, is pleased to announce Interim results for the six months ended 30 June 2013.

Financial Highlights

· Revenue increased 35% to £2.5m (H1 2012: £1.8m) driven by strong acquisition success and own operated franchises

· Profit after tax up 26.6% at £0.56m (H1 2012: £0.44m)

· Operating margin before exceptional items at 31.6% (H1 2012: 48.5%) due to June franchise induction course being moved to August

· Interim dividend up 17% of 3.4p (H1 2012: 2.9p)

Operational Highlights

· Continued growth of the Belvoir network to 155 outlets at 30 June 2013 (At 31 December 2012 - 149).

· 6 new corporate owned outlets opened during the period to 10 sites in total ( At 31 December 2012: 4 outlets)

· 7 major acquisitions completed by Belvoir franchisees in Falkirk, Thirsk, Selby, Inverness, Ipswich, Congleton and Telford in H1 2013

· Acquisition of Claygold Property Limited in May 2013 in Hampshire and Soames in London in July to bolster Belvoir's market presence

· Estate Agency pilot scheme launched

Current trading and market

· Three new outlets due to open in the coming weeks

· Rental market continues to grow - estimated 3 million private rented properties in England, representing 14% of all households

· Some 60% of private rental properties now owned by landlords who use lettings agents. Management expect this percentage to grow further

· Trading has been robust since the period end with a record month in July

· On track to meet Full Year market expectations

Dorian Gonsalves, Chief Executive Officer of Belvoir Lettings, commenting on the results, said:

"The first half of 2013 has been a period of integration for Belvoir. Not only have we continued to focus on organic growth but we have made significant progress on our acquisition strategy for both franchisee and corporate owned outlets. These underpin our strategy to grow the Company and increase our market presence across the UK.

The rental market remains buoyant and we have a strong pipeline for new offices in the remainder of 2013 with 3 new offices due to open this month. To reflect our confidence the board has recommended an increase in the interim dividend of 17% to 3.4p."

For further details:

www.buchanan.uk.com

The interim results will be available on the Company's website: www.belvoirlettingsplc.com

Chairman's Report

It has been a busy start to 2013 for Belvoir. Recruiting of new franchisees is on-going and we are now gathering pace with our current Franchise course with three new territories due to open in the coming weeks, one resale and a pipeline of enquiries for our next course.

Our Management Service Fee income continues to grow and our acquisition programme has been accelerating during the past few months with corporate acquisitions of Redwoods, a multi branch operation in Hampshire, and the continued expansion into London with our purchase of Soames, located in the up-market Chelsea district. In addition, we have assisted five franchise owners in the acquisition of portfolios in their territories, further enhancing Belvoir's footprint.

It is particularly pleasing to report our acquisition expansion programme to create stronger networks in already established areas while expanding geographically across the UK is progressing well, the results of which we are already beginning to see and which will continue to play a major part in the longer term growth of the Company. The addition of properties to the Belvoir portfolio further increases our presence in the market place and shows our commitment to support franchise owners and our ability to take advantage of opportunities both within and beyond franchised territories.

Last year I reported the introduction of a company-wide programme to refresh the look and feel of our shops. This has continued during this year with a further 20 outlets now converted. I anticipate this will continue this year and over the next 2 years as the remaining shops within the Belvoir network join the scheme.

I'm also particularly pleased that we are able to increase our interim dividend by 17% to 3.4 pence per share, up from 2.9 pence last year. This shows the Board's confidence in the continuing strong growth in the Company and is line with our predictions for 2013.

In addition, we have announced today that we have commenced a trial with 10 of our franchise owners on the feasibility of offering current and new clients a residential property sales service. This one year trial should pave the way for Belvoir to add to its range of services and give further opportunities for organic growth as well as providing new acquisition opportunities for sales and lettings businesses.

On the wider scene of the franchising industry, Belvoir continues to be a leading player and I am privileged to serve as a director of the British Franchise Association, on the Policy Board of the European Franchise Federation, and as a member of World Franchise Council. These appointments ensure that our franchising skills and expertise are recognised both on the local and the world stage.

Belvoir continues to be led by a strong management team and experts in their own right in the lettings industry. I am indebted also to our non-executive directors, Karen Bach and Nick Leeming, who have both contributed immensely to the success of Belvoir since our listing on AIM last year.

Many sector observers are continuing to predict that the private rental sector will continue to grow as fundamental shifts in social behaviour lead to less home ownership and more renting whether through choice or dictated by circumstances. This should provide ongoing buoyancy in the rental market for the foreseeable future subject to any regulatory changes, and is one which is recognised by the government as being an important contributor to the housing needs of the nation. Belvoir will continue to exploit this market and will continue to monitor market trends closely. I am optimistic that our standing as a strong and resilient brand in both the rental and franchising markets, together with our loyal and hardworking team of franchise owners and Central Office employees, will provide the best chance of ensuring our future success in these exciting times.

Mike Goddard

Chairman

Operating Review

Future Potential of the Rental Market*

Census figures show that the number of households renting privately increased from 2.6 million to 4.2 million between 2001 and 2011 across England and Wales. Across the UK, it is estimated that some 4.8 million households were in the private rented sector in 2012. Further, the private rental sector now accounts for 18% of all households across England and Wales and an estimated 11.6% in Scotland, with increased concentration in urban areas.

It is estimated that average rents in the mainstream market will increase by 18.2% by 2017 and that by 2016, one in five households in England will be renting in the private sector, a total of some 5.9 million households*.

Less than 1% of rental properties are owned by major corporate landlords with a majority of housing being in the hands of small buy-to-let landlords.

The total private rented sector is currently worth circa £840 billion.

Our business model:

Belvoir's business model is based on 'business format franchising' as defined and accredited by the British Franchise Association. Offering a specialist residential letting service to landlords and tenants across England, Scotland, Wales and Northern Ireland, we are well positioned to capitalise on the nationwide trend towards renting a property rather than buying one. With fully trained, motivated and committed franchise owners across our growing network of 155 offices we have continued to increase our market share nationally. Acting on behalf of mainly private landlords with small portfolios we currently, as a group, manage around 26,000 privately rented properties and this figure continues to increase each month.

Trading Review:

At 30 June 2013 the network comprised 155 Belvoir offices with three additional outlets due to open in the coming weeks. At the time of our IPO there were 142 Belvoir offices. New locations include Aldershot, Kingston Upon Thames and Southampton. We remain confident we will achieve our forecast of 200 Belvoir offices by the end of 2016.

Revenue grew to £2.5m, an increase of 35% on the same 6 month period in 2012. Profit after tax was £0.56m. , up 26% on the same period last year, which in part reflects the £359k of flotation costs incurred in 2012.

Management Service Fees continue to grow and we expect to deliver stronger growth in MSF in the latter part of the year.

Our acquisition strategy continues to gather pace. Since January 1st 2013 we have successfully acquired lettings businesses on behalf of franchise owners in Ipswich, Telford, Selby, Thirsk, Inverness, Falkirk and Northwich. In the same period we made a company acquisition of Redwoods, a four office chain in the South East. Part of this business has been incorporated into two local franchised offices. The remaining elements now form part of our company owned network of offices which currently stands at ten offices. Of these ten, some will be sold onto to franchise owners in the coming months as new businesses are acquired. In addition we acquired Soames who have been operating predominantly in Chelsea, London.

Operations:

Since the start of the year we have continued to increase our support staff to cater for increased business levels and the management of additional company owned outlets. No further human resources will be needed until early 2014 as more company owned outlets are acquired. Several internal promotions now form a strong tier of middle management which will deliver all aspects of our sales, support and operational model. This carefully planned transition means the directors are now better able to focus on the strategic performance of Belvoir Lettings PLC as well as the performance of the network as a whole.

Our long term nationwide rebranding programme launched on 1st May 2012 continues as planned and this will ultimately see all stores fully rebranded to a contemporary look and feel which reflects our high level of service standards and innovative product set available to landlords.

Innovation:

We continue to invest in the development of new products for landlords and in September 2013 we began an estate agency / property sales trial. The trial is for a period of twelve months across at least ten Belvoir offices. Should the trial prove successful it's likely we'll launch property sales across the wider network to capitalise on an improving sales market and to offer a full service to our existing substantial base of landlords nationwide.

Strategy:

Our strategic focus for 2013 and beyond is as follows:

• Open 12 new franchised outlets in areas where we do not currently have a Belvoir Office.

• Increase the number of company owned outlets by two per year

• Maintain our existing strong underlying organic growth in turnover from franchised outlets.

• Assist franchise owners to acquire 12 - 15 competing letting agencies and help integrate these businesses into existing Belvoir offices, thus substantially increasing turnover and profits for the franchise owners concerned and Belvoir Lettings PLC.

Looking Forward:

Trading since June has been robust with a record July. We are estimating a strong second half of the year and the Board are confident we'll achieve full year market expectations.

The private rental market remains strong and the recent increase of the Government Build to Rent scheme funding to £1billion recognises the significant growth in the industry. Although the market remains competitive Belvoir is well placed to benefit from this continued upturn with a strong market presence and strategy to increase outlets across the UK.

The board are confident that Belvoir's franchise structure and strategic plans will mean Belvoir will remain a major player in this growing market.

Dorian Gonsalves

Chief Executive Officer

* All research provided by Savills Report July 2013, Savills Research, Jacqui Daly

Financial Review

Revenue

Group revenue for the six months ended 30 June 2013 was £2.47m, an increase of £643k (35%) on the same period last year.

Overall revenue from Company owned outlets rose to £836k for the six months ended 30 June 2013, from £219k for the six months ended 30 June 2012. This increase represents growth in owned outlets to 10 and estate agency sales fees of £143k, a new source of income for the Group.

Operating profit before exceptional items

Operating profit before taxation and exceptional items was £782k for the six months ended 30 June 2013 compared with £888k for the same period last year. This was mainly due to the work involved in the integration of acquisitions in the first half. This resulted in the June induction course being pushed into August, therefore delaying revenue into the second half.

Operating costs before exceptional items for the period were £1,692k (H1 2012: £943k).

The increase in costs is due to the costs incurred in the running of the estate agency owned outlet of £150k a new operating segment established in the period and the lettings owned outlets of £648k (H1 2012: £231k).

Exceptional Items

Acquisition costs in relation to the acquisition of Claygold Property Limited of £69k have been taken to the profit and loss account in the period in accordance with IFRS accounting policies.

Taxation

The effective rate of corporation tax for the period was 24% (H1 2012: 24.5%).

Profit after taxation

In the six months ended 30 June 2013, profit after tax was £557k compared to £440k for the same period last year. The Company has sufficient brought forward reserves to enable the payment of an interim dividend of £703k and there will be sufficient reserves as at 30 September 2013.

Earnings per share

Earnings per share for continuing operations were 2.7p (H1 2012: 2.4p). The average number of shares in issue in the period was 20,666,667 compared to 18,236,928 for the same period last year.

Dividends

The Board is proposing an interim dividend for 2013 of 3.4p per share, payable to shareholders on 30 September 2013 based upon the register on 13 September 2013.

The ex-dividend date will be 11 September 2013.

Cash flow and net debt

The net cash inflow from operations was £367k before exceptional acquisition costs of £69k (June 2012: £571k).

Liquidity and capital resources

The Group had cash balances of £1,736k at 30 June 2013, compared with £3,211k as at 30 June 2012.

Financial position

The Group stands on a robust financial platform and is strongly cash generative.

Acquisition programme

To enhance the Group's position in Hampshire, on 17 May 2013 the Group acquired 100% of the share capital of Claygold Property Limited, a sales and lettings business.

Carl Chadwick

Finance Director

Condensed Group Statement of Comprehensive Income

For the six months ended 30 June 2013

Condensed Group Balance Sheet

As at 30 June 2013

Unaudited Condensed Group Statement of Changes in Shareholders' equityFor the six months ended 30 June 2013

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2013

Notes to the Financial Statements

1 General information and basis of preparation

The financial information set out in these condensed consolidated financial statements for the six months ended 30 June 2013 and the comparative figures are unaudited.

They have been prepared taking into account the requirements of relevant accounting standards and the AIM rules. They do not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act and do not contain all the information required for full annual financial statements.

The statutory audited accounts for the year ended 31 December 2012 have been delivered to the Registrar of Companies in England and Wales. The Auditor's report on these accounts was unqualified and did not contain statements under Section 498 of the Companies Act 2006.

The condensed consolidated interim financial statements are presented in sterling, which is also the functional currency of the parent company.

Belvoir Lettings PLC is the group's ultimate parent company. The company is a Public Limited Company incorporated and domiciled in the United Kingdom.

Its registered office and principal place of business is The Old Courthouse, 60a London Road, Grantham, Lincolnshire, NG31 6HR. Its shares are listed on the AIM market of the London Stock Exchange.

The condensed interim financial statements for Belvoir Lettings PLC have been approved for issue by the Board of Directors on 3 September 2013 and delivered to the Registrar of Companies in England and Wales on 5 September 2013.

Significant accounting policies

The condensed consolidated interim financial statements have been prepared under the historical cost convention. Being listed on the AIM of the London Stock Exchange, the company is required to present its consolidated financial statements in accordance with International Financial Reporting Standards ("IFRS's") as adopted by the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The accounting policies have been applied consistently throughout the group for the purposes of preparation of these condensed consolidated interim financial statements.

Revenue recognition

Revenue representsincome from the sale of franchise licences,provision of trainingand ongoing supportof the franchisees. Servicefees are invoicedto individual franchisees on a monthly basis in relation to a percentage of their turnover for any given month, and are recognised at the point of invoice.

Revenue also includes fees generated by franchises operated within the Group. These internal franchises invoice landlords on a monthly basis and so recognise the income during the period in whichthe work is carried out.

Following the acquisition in the period, the Group now recognises a new revenue stream of estate agency fees. These estate agency fees are recognised at the point the property sale has completed.

Initial franchise fees are recognised upon signing of the contract as it is at this point that the new franchisee has a legal obligation to make good the terms of the contract. The initial fees are for the use of the brand along with initial training, support and promotion during the opening phase of the new office. As such the Group regard this as a separate initial transaction for which they have fulfilled their obligations.

National Promotional Fund recharge is invoiced to franchise owners on a monthly basis and is calculated based on a percentage of the turnover of individual franchises. The fund is held internally (as agent for the franchise) for the purposes of promoting the brand to the benefit of all franchises.

An element of the National Promotional Fund is recognised as income each month in respect of management fees for promoting the brand. No other element of receipt is recognised as revenue.

2 Segmental information

The Executive Board, as the chief operating decision maker, reviews financial information for and makes decisions about the Group's overall franchising business and has identified the operating segments to be, that of property lettings franchising and owned operated lettings and estate agency outlets. Management do not report on a geographical basis and no customers represent greater than 10% of total revenue in either of the periods reported.

The segmental information is, therefore, the same as that set out in the consolidated statement of comprehensive income. The directors do not consider the presentation of gross profit within the Group statement of comprehensive income to reflect a true position of the Group's activities and core operations, which is that of a property letting franchisor. Therefore, the directors disclose operating profit as the key performance measure. The reported segment is consistent with the Group's internal reporting for performance measurement and resources allocation.

The directors believe there to be three material income streams which are split as follows:

3 Dividends

The company will pay an interim dividend of 3.4 pence per share (£702,667) on 30 September 2013 to the shareholders on the register on 13 September 2013.

4 Taxation

Taxation has been calculated by applying the forecast full year effective rate of tax to the results for the period.

5 Earnings per share

Earnings per ordinary share have been calculated by dividing the profit after tax for the financial period, by the weighted average number of shares deemed to be in issue in the period under the pooling of interests method of accounting.

The value identified for earnings per share is very sensitive to the average number of shares in issue. Until there are comparable periods with the same shares in issue, this statistic cannot be expected to be meaningful when compared to the prior year or period.

6 Reconciliation of profit before taxation to cash generated from operations

7 Acquisitions

On 17 May 2013, Belvoir Property Management (UK) Limited, a wholly owned subsidiary of Belvoir Lettings Plc, acquired 100% of the equity instruments of Claygold Property Limited, a company incorporated in England and Wales, therefore obtaining control. The acquisition was made to enhance the Group's position in the regional area. The goodwill and fair value adjustments figures included within these interim accounts are provisional pending finalisation of completion accounts.

To the period ended 30 June 2013, Claygold Property Limited, generated turnover of £286k and an operating profit of £28k.

The details of the business combinations in aggregate are as follows:

8 Related party disclosures

The related party transactions that have occurred in the six months to 30 June 2013 are not materially different in size or nature to those reported in the Company's Annual Report for the year ended 31 December 2012.