7 August 2024
THE PROPERTY FRANCHISE GROUP
PLC
("TPFG",
the "Company" or the "Group")
Half Year Trading
Update
Transformational period for
UK's leading property franchisor
The Property Franchise Group PLC,
the UK's largest multi-brand property franchisor, is
pleased to provide the following trading update ahead
of publishing its interim results on Tuesday 10 September
2024.
The last six months has seen the
commencement of another transformational period for the Group
following to the merger with the Belvoir Group PLC ("Belvoir") and
the acquisition of GPEA Limited ("GPEA"), owner of The Guild of
Property Professionals and Fine & Country. Group revenue more
than doubled compared to the prior period with significant
increases in franchising and financial services, along with the
addition of a new licensing revenue stream.
Highlights:
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Group revenue increased 104%
to £26.9m (H1 2023: £13.2m)
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3% like for like increase to
£13.6m1
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Management Service Fees ("MSF")
increased 60% to £12.3m (H1 2023: £7.7m)
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8% like for like increase to
£8.3m1
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Sales agreed pipeline increased 67%
to £47.5m (H1 2023: £28.4m)
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16% like for like increase to
£32.8m1
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Managing 152,500 rental properties
(H1 2023: 77,000)
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2% like for like increase to
78,0001
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EweMove sold 22 new territories (H1
2023: 17)
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Financial services commissions
increased 778% to £7.9m (H1 2023: £0.9m), all of the increase being
attributable to Belvoir
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Net debt of £14.3m after borrowing
£20m to fund the acquisition of GPEA (H1 2023: net cash
of £0.7m)
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1Like for like comparison
excluding the impact of the acquisition of Belvoir Group on 7 March
2024, and GPEA on 31 May 2024.
Lettings MSF increased by 8%, in
line with the ONS Private Sector Index which showed a similar
annual rental inflation to June 2024. With continued strong demand,
lettings continues to be an important driver of the Group's revenue
growth.
Sales MSF increased by 7%, when
seasonally adjusted UK property transactions for January
to June were flat on the same period in the prior
year2,
demonstrating that the Group has outperformed the broader market.
The Group's sales agreed pipeline at 30 June 2024 was 16% higher on
a like for like basis than 30 June 2023 which bodes well for H2
trading despite lead times remaining high.
The recent base interest rate cut
should have a positive impact on H2 sales and financial services
activity.
Revenues from financial services are
now dominated by the contribution from Belvoir. Total financial
services revenues increased by 18%, with the acquisitions made by
Belvoir in 2023 contributing approximately half of this
increase.
2HMRC National Statistics 31
July 2024
Contributions from Acquisitions
The merger with Belvoir became
effective on 7 March 2024 and Belvoir's trading results from that
date to 30 June 2024 will be included within the Group's financial
statements for the six months ended 30 June 2024. The H1 2024
revenue contribution from Belvoir was £12.2 million, of which £7.1
million was financial services, £4.0 million MSF and £1.1 million
other franchising income.
The GPEA acquisition completed on 31
May 2024 and its trading results for June 2024 (one month) will be
included within the Group's financial statements for the six months
ended 30 June 2024. The H1 2024 revenue contribution from these
businesses was £1.0 million.
The integration of Belvoir and GPEA
into the broader Property Franchise group is progressing well with
the restructuring of the senior leadership team largely completed
and projects being initiated to drive synergies and develop revenue
opportunities.
Chief Executive Officer, Gareth Samples,
commented: "The first half of 2024 has
been transformational for our Group, building on our track record
of growth and completing two significant acquisitions which has
created a substantially larger group with an international
presence. We are delighted with our organic revenue performance in
the first half year and the contributions from each of our new
businesses.
"We have a very resilient and focused franchise model and
multiple income streams across 18 brands including a significantly
enhanced, exciting opportunity in financial services. With an
improving pipeline and at least one interest rate reduction behind
us, the Board is confident that trading remains at least in line
with market expectations for the full year."
For
further information, please contact:
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The
Property Franchise Group PLC
Gareth Samples, Chief Executive
Officer
David Raggett, Chief Financial
Officer
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01202 405 549
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Canaccord Genuity Limited (Nominated Adviser and Joint Broker)
Max Hartley
Harry Rees
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020 7523 8000
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Singer Capital Markets (Joint Broker)
Rick Thompson
James Fischer
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020 7496 3000
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Alma Strategic Communications
Justine James
Joe Pederzolli
Kinvara Verdon
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020 3405 0209
propertyfranchise@almastrategic.com
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About The Property Franchise Group PLC:
The Property Franchise Group PLC
(AIM: TPFG) is the UK's largest multi-brand property
franchisor, with a network of over 1,946 outlets delivering high
quality services to residential clients, combined with an
established Financial Services business.
The Company was founded in 1986 and
has since strategically grown to a diverse portfolio of 18 brands
operating throughout the UK, comprising longstanding
high-street focused brands and two hybrid brands. The Property
Franchise Group is also a member of two leading mortgage networks
through its mortgage brokers, Brook Financial (MAB) and The
Mortgage Genie (Primis).
TPFG's brands are: Belvoir, CJ Hole,
Country Properties, Ellis & Co, EweMove, Fine & Country,
Hunters, Lovelle, Martin & Co, Mr and Mrs Clarke, Mullucks,
Newton Fallowell, Nicholas Humphreys, Northwood, Parkers, The Guild
of Property Professionals and Whitegates.
Headquartered in Bournemouth,
the Company was listed on AIM on the London Stock Exchange in 2013
and entered the AIM 100 in July 2024.
More information is available
at www.propertyfranchise.co.uk
