7 Feb 2018 07:00
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.
7 February 2018
BELVOIR LETTINGS PLC
(the "Group" or "Belvoir")
Pre-Close Trading Update
Notice of Full Year Results
Belvoir Lettings PLC (AIM: BLV), the UK's largest property franchise, today provides the following update on the outcome of the financial year ended 31 December 2017 and the outlook for 2018.
The Group has performed well throughout the year reflecting the continued underlying organic growth in franchise management service fee income, a record number of portfolio acquisitions at a franchisee level and the integration of recent acquisitions. Consequently, the Board expects that the performance for the year, including underlying profit before tax, will be in line with market expectations.
Dorian Gonsalves, CEO of Belvoir commented:
"In 2017 Belvoir successfully supported franchise growth across all our brands through our Assisted Acquisitions programme and by promoting additional revenue streams such as property sales and property related financial services.
The Board is excited by the continued opportunities for consolidation within the sector with the Belvoir Group well placed to take advantage at both a local and national level. We anticipate that smaller independent agents will continue to look to exit following increased regulation and the prospect of the ban on tenant fees in 2019, and our acquisitions team is working closely with our entrepreneurial franchisees who are keen to invest to grow their business."
2017 Highlights and Developments
· Management Service Fees ('MSF') increased by 22%
· Group revenue up 13% to £11.1m (2016: £9.9m) reflecting:
o full year contribution from Northwood
o mid-year acquisition of Brook
o revenue reduction from franchising out six corporate-owned offices
· The Group now represents over 58,000 managed properties (2016: 55,756)
· Northwood integration providing reduction in cost base of approximately £0.3m
· Strong letting bias with lettings to sales ratio of 80%:20% (2016: 75%:25%)
· Belvoir awarded Franchise/Network of the Year at the Negotiator Awards 2017
· Recruitment of six (2016: seven) new franchise owners into one new and five existing territories
· Strong year-end bank balance of £1.3m (2016: £1.5m) after £1.5m of the Brook acquisition having been settled in cash
· Franchisee portfolio acquisitions doubled with 23 completed adding £3.4m of network revenue and £0.4m of ongoing MSF p.a. (2016: 11, £1.5m and £0.2m)
· There is a strong pipeline of portfolio acquisition opportunities, many of which are expected to complete in the first quarter.
The audited results for the financial year ended 31 December 2017 will be announced on Tuesday 10 April 2018.
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, Philip Davies, Will Goode Corporate Finance |
0207 894 7000 |
Caspar Shand Kydd, Alex Pollen Sales | |
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.