Last checked at 15 Jun 2021 07:00
15 June 2021
THE PROPERTY FRANCHISE GROUP PLC
("TPFG", the "Company" or the "Group")
AGM Statement
The Property Franchise Group PLC, the UK's largest property franchisor, is pleased to provide the following trading update ahead of its Annual General Meeting ('AGM') which will take place at 11:00am today.
The Group has achieved strong trading results in the first five months of 2021, in-line with management's expectations. Revenue was significantly higher than for the same period in 2020, which was impacted by Covid, as well as 2019. The results have also benefitted from the acquisition of Hunters, which completed on 19 March 2021.
Highlights:
· Group revenue* in the five months to 31 May 2021, increased by 90% on 2020 and 85% on 2019. Like for like revenues (excluding those contributed from the acquisition of Hunters) for the period increased 29% on 2020 and 26% on 2019.
· Group Management Service Fees* ("MSF") for the period increased 54% on 2020 and 39% on 2019. Like for like MSF (excluding those contributed from the acquisition of Hunters) for the period increased by 29% on 2020 and 16% on 2019.
*excludes Hunters' pre-acquisition figures
The sales market continues to be buoyant with growth in the number of house sales for the period compared to 2020 ranging from 89% in the TPFG high street-led offices to 126% in EweMove. Growth over 2019 was between 36% and 97% respectively. The average sales fee charged has increased by over 10% in the last year, in-line with growth in UK house prices.
EweMove, the Group's hybrid estate agency, has clearly built on its brand positioning, with the record recruitment of 30 new franchisees in the period. This is almost as many as it has ever recruited in a year and puts the Group well on track to achieve one of its core strategic aims: to double the size of EweMove territories to 230 by the end of 2022.
The integration of Hunters is progressing very well with particular focus on finance, training, compliance, IT and key suppliers in the first three months.
Following the announcement of the strategic partnership with LSL in April 2021, the franchise network has shown extremely strong interest in the opportunity and the central team has begun to rollout fulfilment plans.
Whilst the residential housing market currently remains very busy, supported by the Government's stamp duty holiday and introduction of the 95% mortgage, the Group is also delighted by the progress made with its strategic initiatives which are set to drive organic, like-for-like growth even when the external market begins to normalise.
The Group will report its H1 trading update in late July 2021.
For further information, please contact:
The Property Franchise Group PLC Gareth Samples, Chief Executive Officer David Raggett, Chief Financial Officer | 01202 405549
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Cenkos Securities plc (Nominated Adviser and Broker) Max Hartley, Callum Davidson Julian Morse, Alex Pollen, Dale Bellis (Sales) | 0207 397 8900
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Alma PR Susie Hudson Justine James Harriet Jackson | 0203 405 0209 |
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About The Property Franchise Group PLC:
The Property Franchise Group PLC (AIM: TPFG) is the largest property franchisor in the UK and manages the second largest estate agency network and portfolio of lettings properties in the UK.
The Company was founded in 1986 and has since grown to a diverse portfolio of nine brands operating throughout the UK, comprising longstanding high-street focused brands and a hybrid, no sale no fee agency.
The Property Franchise Group's brands are Martin & Co, EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates, Mullucks & Country Properties.
Headquartered in Bournemouth, UK, the Company was listed on AIM on the London Stock Exchange in 2013. More information is available at www.propertyfranchise.co.uk