Last checked at 29 Jul 2021 07:00
29 July 2021
THE PROPERTY FRANCHISE GROUP PLC
("TPFG", the "Company" or the "Group")
Half Year Trading Update
The Property Franchise Group PLC, the UK's largest property franchisor, is pleased to provide the following trading update ahead of publishing its interim results on Tuesday 14 September 2021.
The Group has achieved strong results in the first six months of 2021. Pleasingly, like for like revenue and Management Service Fees were significantly up on the same period in 2020 and, more importantly, 2019. This is owing to a very active residential housing market, and the acquisition of Hunters Property PLC ("Hunters"), which completed on 19 March 2021.
Highlights:
· Group revenue increased 111% to £11.4m (2020: £5.4m)
o 35% like for like increase to £7.2m*
o 33% like for like increase on 2019*
· Management Service Fees ("royalties") increased 69% to £7.1m (2020: £4.2m)
o 35% like for like increase to £5.7m*
o 23% like for like increase on 2019*
· Network income increased 118% to £89.4m (2020: £41.0m)
o 38% like for like increase to £56.3m*
· Sales agreed pipeline increased 247% to £29.5m (2020: £8.5m)
o 64% like for like increase to £14.0m*
· Managing 73,000 rental properties (2020: 58,000)
· EweMove sold 37 new territories (2020: 6)
· Net debt of £5.0m after borrowing £12.5m to fund the acquisition of Hunters (2020: £nil)
* like for like comparison excluding the impact of the acquisition of Hunters.
The Government's initiatives to support the housing market, coupled with remote working and demand for more space, has contributed to the continued growth of our network's house sales for the period. Compared to the same period in 2020, this growth exceeds 100%. At the same time the average sales fee charged has increased by over 10% in the last year, in-line with increasing house prices. These two factors have driven the increase in network income and the Group's revenue.
Robust sales agreed, comparable with 2020 and considerably higher than 2019, have continued post period end. With significant sales agreed pipelines typically converting into fees at 20% per month and the current level of sales agreed, we remain optimistic about the sales market this year. Similarly, lettings income remains resilient, with a 7% like for like increase in MSF over the same period in 2020.
EweMove, the Group's hybrid estate agency, has continued to build on its brand positioning, with the sale of 37 new territories in the period setting a new record for the total number of territories operating of 149. This 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 continues to progress well. Today's update demonstrates that our strategy to acquire an estate agent with a strong focus on sales was the right one. The strengths of our new enlarged team continue to complement one another as we forge ahead with our strategic initiatives to drive organic growth.
Given the Group's strong first half trading performance and the continued favourable market dynamics outlined above, we remain confident in a very strong trading performance for the full financial year.
Chief Executive Officer, Gareth Samples, commented: "We are delighted to report that the first six months of trading have been an exceptional period for the Group. The UK's housing market has seen activity levels that I have not witnessed before in my career, supported by peoples' desires to move homes.
"We had the resources and capabilities to make the most of the exceptionally busy housing market and deliver a first-class service to those looking to buy, sell and let. Prior to the start of this year, we had enhanced the Group's senior management team and have continued to do so, offering our franchisees advice and support commensurate with their scale and ambitions. This, coupled with the acquisition of Hunters and our partnership with LSL, has undoubtedly supported us in our mission to be the UK's leading property franchisor."
The information contained 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
For further information, please contact:
The Property Franchise Group PLC Gareth Samples, Chief Executive Officer David Raggett, Chief Financial Officer | 01202 405549
| |
Cenkos Securities plc (Nominated Adviser and Broker) Katy Birkin, Callum Davidson Julian Morse, Alex Pollen, Dale Bellis (Sales) | 0207 397 8900
| |
Alma PR Susie Hudson Justine James Harriet Jackson
| 0203 405 0209 | |
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