27 Jan 2016 07:00
27 January 2016
Hunters Property PLC
("Hunters" or "the Group")
Trading update
Hunters, one of the UK's largest national sales and lettings estate agency and franchise businesses, is pleased to provide the following trading update for the 12 months ended 31 December 2015.
2015 was a year of significant achievement for Hunters. In the first half of the year the Company attracted fresh capital to accelerate the growth of the business and on the 2 July, floated on AIM.
The UK property market experienced a number of well-publicised challenges during 2015. The start of the year saw subdued activity in advance of the General Election, and afterwards there has been, as widely reported, a national shortage of properties for sale and to let.
Despite this, the group performed well across all divisions, with network income above £30m for the first time (2014: £21.2m). Independent businesses that converted to Hunters experienced an average increase in revenue of 29% for 2015. The Company therefore expects to post results for the full year ahead of the Board's expectations and significantly ahead of the prior year.
During 2015, 32 new branches joined the network. Over the last two years the Group has attracted 63 new branches, which the Board believes is significantly more than any other business in our sector. In addition the Company acquired a 23 branch franchise network bringing the Group at year end to 170 offices, with 11 owned and 159 franchised.
Full year results are expected to show turnover to have increased by 32% to £12m, and EBITDA to have increased by over 30%. The Group is cash generative and has only modest debt.
The Board declared a maiden dividend payment of 0.5p per share in October, and as indicated at that time, intend to adopt a progressive dividend policy.
The Group enters 2016 with strong levels of letting activity and the pipeline of agreed sales in the hands of lawyers is at a record level for the time of year.
The Board believes that the skills and reputation of the Group's experienced management team and its track record of success continue to attract individuals and businesses to the Group. The Group has good visibility on openings of new branches with several already agreed to come on-stream during Q1 2016. The Board again confidently expects significant further expansion during 2016 through attracting high quality franchisees.
The Board expects further significant expansion during 2016 by attracting high quality franchisees and by acquisition.
For further information please contact:
Hunters Property PLC Kevin Hollinrake, Chairman Harry Hill, Chief Executive Ed Jones, Chief Financial Officer
| 01904 756 197 |
Numis Securities Stuart Skinner, Paul Gillam (Nomad) David Poutney (Corporate Broking)
| 020 7260 1000 |
Smithfield Consultants Alex Simmons
| 0207 360 4900 |