12 Mar 2014 07:00
For Immediate Release 12 March 2014
BELVOIR LETTINGS PLC
(the "Company" or "Belvoir")
Year end trading update and Notice of Results
The Company, today issues a trading update for the financial year ended 31 December 2013 and confirms that it will propose an increased final dividend of 3.4p per share (2012: 2.9p), resulting in a total for the year of 6.8p per share and represents an increase of 17% on the prior year.
The Company expects total revenue for the full year to be approximately £5.8m which is a significant increase of 44% on the prior year figure of £4.0m. Additionally, reflecting the anticipated second half weighting of trading of the business, profit before tax in the second half was approximately double that reported for the first half year, giving £1.62m for the year, after one-off acquisition and fundraising related costs totaling £200k (which in accordance with IFRS are not sufficiently material to be separately categorized as 'exceptional items'). This higher turnover partly reflects the change in mix to more owned lettings outlets which has led to higher costs in relocations and shop fittings.
Much was achieved in 2013 in line with the Group's strategic objectives; however, the peak of insurance commissions anticipated to be received before the year end were delayed in the short term due to a major change of the preferred broker. This resulted in delayed commissions to the franchisees and hence affected the timing of Managed Service Fees ("MSF") received. The changes to the insurance arrangements have included external consultancy costs and ultimately income was deferred, adversely affecting the current year profitability. It is hoped that the new insurance product set is now much improved in quality and should sell in greater numbers going forward. Irrespective of this MSF increase to £3.1m from £2.85m, an uplift of 8.8%, this is below our own budgeted expectations which were set at 10%.
Good progress has been made on the estate agency trial with larger members of the trial group reporting house sales and a good reception to the service from buy to let landlords.
Belvoir will publish its full year results for the year ended 31 December 2013 on 26 March 2014. An Analyst meeting will be held at 10.30am on 26 March, at the offices of Buchanan, 107 Cheapside, EC2V 6DN.
For further details:
Belvoir Lettings PLC Mike Goddard, Chairman Dorian Gonsalves, Chief Executive Officer Carl Chadwick, Finance Director |
01476 584900 |
Cantor Fitzgerald Europe Rick Thompson, David Foreman, Corporate Finance David Banks, Corporate Broking |
0207 894 7000 |
Buchanan Charles Ryland, Gabriella Clinkard |
0207 466 5000 |