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Belvoir Group PLC - Continued Growth of Financial Services

RNS Number : 3087L
Belvoir Group PLC
12 January 2021
 

 

12 January 2021

                                                           

BELVOIR!

BELVOIR GROUP PLC

(the "Company" or "Belvoir" or "Group")

 

Continued Growth of Financial Services

 

 

Belvoir Group PLC (AIM:BLV), the UK's largest property franchise, is pleased to report that its financial services division has exceeded its milestone of 200 advisers ending 2020 with 202 advisers, up 22% on 2019. 

 

The Belvoir Group established its financial services division in 2017 with the acquisition of Brook Financial Services Ltd, a team of 32 advisers. This was followed in 2018 by the acquisition of MAB (Glos) Limited, adding a further 88 advisers. By the end of 2018, the financial services division was successfully operating a network of 123 advisers which over the past two years has grown organically, to operate 202 advisers in 95 locations across the UK.

 

In 2020, despite the challenges presented by Covid-19, revenue was 13% up on 2019 at £9.6m (2019: £8.5m), and profit before tax, provisionally reported at £1.8m (2019: £1.3m), was 26% up on the prior year. This profit represents an uplift of 100% from the businesses since acquired, and a return of 32% on the £5.6m investment in the two original businesses.

 

The successful growth has benefitted from the Group's strategic objective to pair its franchisees and financial advisers to work together by introducing new mortgage products and financial services across all Group networks, as part of the drive to bring other property-related services to franchisees.  141, around 45%, of the Group's lettings and estate agencies are now offering financial services through a Brook financial adviser, up from 95 offices at the end of 2019.  Clearly, there is further opportunity to roll out to the remaining Group offices as the financial services network continues to grow towards its objective of achieving full coverage across the UK.

 

At the same time, Brook has continued to develop strong relationships with independent estate agents, as evidenced in 2019 by the eight-year exclusive agreement to provide financial services to a 20-office estate agency network in Yorkshire.

 

 

Dorian Gonsalves, CEO, commented:

 

"Reaching 200 financial advisers was an ambitious goal for any normal year, but the challenges of 2020 made the achievement all the more remarkable.  Furthermore, a 26% increase in profit on 2019, and indeed a doubling of profitability since the businesses were acquired, is an outstanding performance.

 

"In 2017, the Board identified financial services as a good means of diversification and a valuable additional revenue stream for both its franchisees and for the Group as a whole, and this has proved to be the case.  Credit must be given to our senior financial services team comprising Mark Newton, Michelle Brook and Tim Wood who have worked relentlessly to successfully grow our financial services network.

 

"Our acquisition strategy continues to focus on bringing on board relatively small successful businesses where there is scope for greater growth as part of the Belvoir Group.  This has been demonstrated by the acquisition of four additional franchise networks to the Belvoir Group since 2015, the most recent being Lovelle at the start of 2020, and the acquisition of Brook and MAB (Glos) to provide the platform for our growing financial services division.  The Board will continue to identify suitable targets that meet its acquisition criteria and deliver healthy returns on investment."

 

Next Scheduled Update

 

A more detailed pre-close trading update for the year ended 31 December 2020 will be provided on Thursday 28 January 2021.

 

The person responsible for arranging the release of this information is Louise George, Chief Financial Officer of the Company.

 

 

For further details:

 

Belvoir Group PLC

Dorian Gonsalves, Chief Executive Officer

Louise George, Chief Financial Officer

www.belvoirgroup.com

 

 01476 584900

investorrelations@belvoirgroup.com

finnCap

Julian Blunt & Teddy Whiley (Corporate Finance)

Tim Redfern (ECM)

www.finncap.com

 

+44 (0) 20 7220 0500

Buchanan

Charles Ryland, Kim Looringh-van Beeck & Tilly Abraham

 +44 (0) 20 7466 5000

     

Notes for editors:

About Belvoir Group PLC

Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise group with 396 offices across five brands specialising in residential lettings, property management, residential sales and property-related financial services. With its Central Office in Grantham, Lincolnshire, the Group manages over 68,550 properties and reported record revenues of £19.3m in 2019 making Belvoir the largest property franchise group in the UK.

For further information, please visit: www.belvoirgroup.com

 

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