Proactiveinvestors United Kingdom Belvoir Lettings https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Belvoir Lettings RSS feed en Mon, 17 Jun 2019 08:24:30 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Belvoir Lettings PLC trading strongly as renting becomes lifestyle choice ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13400/belvoir-lettings-plc-trading-strongly-as-renting-becomes-lifestyle-choice-13400.html Fri, 17 May 2019 14:51:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13400/belvoir-lettings-plc-trading-strongly-as-renting-becomes-lifestyle-choice-13400.html <![CDATA[RNS press release - Results of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190516102758_14076679/ Thu, 16 May 2019 10:27:58 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190516102758_14076679/ <![CDATA[News - Belvoir Lettings outperforming on all fronts ]]> https://www.proactiveinvestors.co.uk/companies/news/220389/belvoir-lettings-outperforming-on-all-fronts-220389.html Belvoir Lettings PLC (LON:BLV), the UK's largest property franchise, said it is outperforming the three key markets in which it operates.

After a robust first quarter of 2019, the board is confident of meeting market expectations for the full year.

READ Belvoir Lettings confident of further opportunities for growth

Year-on-year growth of 6.3% in Management Service Fees (MSF) from lettings was well ahead of the reported 1.2% growth in the rental index of 1.2%, while growth of 10.3% from sales MSF compared with a drop of 1.5% in property transactions. Net banking from financial services (on a like-for-like basis) was up 20%.

In the year to date Belvoir's Assisted Acquisitions programme has supported six franchisees to acquire a local competitor, adding £1.2mln of network revenue, nearly 800 managed properties and over £100,000 a year of recurring MSF.

There are still £2.0ml of deals currently with lawyers and a strong pipeline of further opportunities to underpin the group's growth target for 2019, Belvoir said.

"The board is very encouraged by trading in Q1 with our franchise model proving that, even in a challenging year for the property market, it has the resilience to overcome and indeed benefit from changes in the sector,” said Dorian Gonsalves, the chief executive officer.

Paul Shamplina and Kate Faulkner release latest edition of their book ‘The Landlord’s Friend’ - definitely worth a read! Paul, the man himself, kindly handed me a copy: https://t.co/hSYPKYjU8B @PaulShamplina @katefaulkner @Property118 #buytolet pic.twitter.com/hhS34dOxOq

— Dorian - Belvoir! (@Dorian_Belvoir) May 9, 2019

Mike Goddard, Belvoir’s founder and non-executive chairman, is retiring from the board at today’s annual general meeting. He will be succeeded by non-executive director, Michael Stoop.

“Through his entrepreneurial spirit and his passion for franchising, Belvoir has become the largest property franchise group in the UK. I would like to express my personal and the board's sincere gratitude for all that Mike has done and achieved as founder, CEO and chairman over the past 24 years,” Gonsalves said.

"We welcome as chairman, Michael Stoop, who has over 40 years' experience of the property franchise sector and has already made a significant contribution since joining the board in March 2018," he added.

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Thu, 16 May 2019 07:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220389/belvoir-lettings-outperforming-on-all-fronts-220389.html
<![CDATA[RNS press release - AGM Trading Update and Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190516070001_14075754/ Thu, 16 May 2019 07:00:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190516070001_14075754/ <![CDATA[Media files - Belvoir builds on a flat market ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12818/belvoir-builds-on-a-flat-market-12818.html Tue, 02 Apr 2019 09:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/12818/belvoir-builds-on-a-flat-market-12818.html <![CDATA[News - Belvoir Lettings confident of further opportunities for growth ]]> https://www.proactiveinvestors.co.uk/companies/news/217716/belvoir-lettings-confident-of-further-opportunities-for-growth-217716.html Belvoir Lettings PLC (LON:BLV) shares rose on Tuesday as the group, which runs a network of more than 300 lettings and estate agencies, said it has made an encouraging start to 2019.

The board is confident that the year will see further opportunities for growth, both organically and through sector consolidation, despite the tenant fee ban, which will come into effect in June. The chairman, Mike Goddard, said the group has taken steps to mitigate the impact of the tenant fee ban.

WATCH: Belvoir builds on a flat market

This year, the company is looking to build on a strong performance in 2018 when profit before tax rose 40% to £5.5mln from £3.9mln the year before, continuing an unbroken string of 22 years of profit growth.

Group revenue rose 21% to £13.7mln in 2018 from £11.3mln in 2017, while management service fees (MSF) improved by 7% to £8.5mln from £7.9mln against the backdrop of a flat property market.

The number of high street offices within Belvoir’s property network remains at 300 with the average MSF per franchise office up to £28,333 (2017: £26,333) compared to just £19,753 in 2014, noted chairman Mike Goddard.

Cash flow from operating activities was healthy at £4.6mln, up from £3.7mln the year before, and contributed to an increase in the year-end bank balance to £1.8mln from £1.4mln the year before.

Net debt rose to £9.6mln from £5.1mln a year earlier following the payment of £4.2mln in earn-out fees relating to the Northwood acquisition and the £4.0mln cash consideration for the acquisition of MAB Glos, the financial services firm.

READ: Belvoir Lettings revenues rise as rental market defies property wobble

The full-year dividend has been pumped up to 7.2p from 6.9p the year before as a result of the group declaring a final dividend of 3.8p (2017: 3.5p).

Dorian Gonsalves, the chief executive officer of Belvoir Lettings, said top-line growth outperformed both the sales and lettings elements of the housing market and the financial services market.

“The increase in our like-for-like lettings MSF of 2.6% outstripped the 1% rental index, and lettings were boosted further by a 4.5% uplift from our assisted acquisitions programme which performed ahead of our expectations,” W Gonsalves noted.

“Meanwhile, our sales MSF increased by 8.4% against the backdrop of a flat sales market in which a 2% fall in the number of UK property transactions was compensated by a modest increase of 2.5% in house prices. Revenue from Brook, our 2017 financial services acquisition, increased by 20%, on a full year basis, compared with a 3.7% increase in the value of gross mortgage advances,” he added.

“Belvoir is uniquely positioned within the property sector, benefiting from the agility of a franchise business model compared with the larger corporate players, whilst providing our networks with the Central Office systems and support, not available to the smaller independent agents.

“Belvoir is a strongly cash generative business with revenues underpinned by the recurring 'annuity-style' lettings income stream coupled with the diversification into complementary property-related services, which will enable the group to overcome changes and outperform in the sector over the coming year," Gonsalves said.

In early afternoon trading, shares in Belvoir Lettings were 2% higher at 102.50p.

 -- Adds share price, video link --

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Tue, 02 Apr 2019 07:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217716/belvoir-lettings-confident-of-further-opportunities-for-growth-217716.html
<![CDATA[RNS press release - Preliminary results ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190402070012_14024536/ Tue, 02 Apr 2019 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190402070012_14024536/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190225165957_13980995/ Mon, 25 Feb 2019 16:59:57 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190225165957_13980995/ <![CDATA[News - Belvoir Lettings sees good prospects for next five years ]]> https://www.proactiveinvestors.co.uk/companies/news/214287/belvoir-lettings-sees-good-prospects-for-next-five-years-214287.html  

How is it doing

An increased contribution from financial services helped revenues in 2018 rise by 21% to £13.7mln.

Income from its franchises rose by 7.1%, which was well ahead of the property market overall, while a full year from Brook helped financial revenues jump by 20%.

As a result, underlying profits before tax will meet expectations with the progressive dividend policy to be maintained, Belvoir Lettings PLC (LON:BLV) said.

Dorian Gonsalves, chief executive, said the Assisted Acquisitions programme added network revenue of £6.9m, which was ahead of the  £6.6mln target for the year and over double that achieved in 2017.

Confirmation that the tenant fee ban will be introduced from next June has concentrated minds among the lettings agents.

Belvoir has expanded its operations in mortgages to provide an alternative source of income and this will reduce the impact to 3% of revenue after nine months.

What the boss says

" The bottom line is people always need to move house and our fundamental job is to help them. People will always be moving regardless of what is going on politically and economically."

Video

 

Inflection points

June’s introduction of a ban on tenant fees in June  might be a negative for the sector but it clears the uncertainty

Similarly, Brexit has been a drag on property activity throughout London and the South-East

Activity elsewhere in the UK is holding up

Dividend payout is likely to rise with full year results

At 102p, yield is already 6.8%  

Blue Sky

Belvoir has expanded during the recent property downturn in property activity so in an upturn there should be substantial scope to boost earnings and revenue

Market leader Countrywide has had a torrid time and if it is forced to shed a substantial part of its network, Belvoir is a position to take advantage

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Fri, 08 Feb 2019 15:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214287/belvoir-lettings-sees-good-prospects-for-next-five-years-214287.html
<![CDATA[Media files - Belvoir Lettings' Dorian Gonsalves reports on one of its best years since listing ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12046/belvoir-lettings--dorian-gonsalves-reports-on-one-of-its-best-years-since-listing-12046.html Thu, 31 Jan 2019 12:11:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12046/belvoir-lettings--dorian-gonsalves-reports-on-one-of-its-best-years-since-listing-12046.html <![CDATA[News - Belvoir Lettings revenues rise as rental market defies property wobble ]]> https://www.proactiveinvestors.co.uk/companies/news/213703/belvoir-lettings-revenues-rise-as-rental-market-defies-property-wobble-213703.html A ban on tenant fees from June will have less impact than expected on Belvoir Letting PLC (LON:BLV).

Originally, Belvoir, which runs the UK’s second largest letting network, forecast the ban would knock 8% from gross profits.

WATCH: Belvoir Lettings' Dorian Gonsalves reports on one of its best years since listing

Now it estimates the impact at 6% dropping to 3% after nine months as a shift into financial services and mortgage advice has diversified revenues.

An increased contribution from financial services helped revenues in 2018 rise by 21% to £13.7mln.

Income from its franchises rose by 7.1%, which was well ahead of the property market overall, while a full year from Brook helped financial revenues jump by 20%.

As a result, underlying profits before tax will meet expectations with the progressive dividend policy to be maintained, Belvoir said.

Dorian Gonsalves, chief executive, said the Assisted Acquisitions programme added network revenue of £6.9m, which ahead of the  £6.6mln target for the year and over double that achieved in 2017.  

“Meanwhile, we are also pleased to see our organic lettings growth and our increase in sales transactions exceeding market performance.”

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Thu, 31 Jan 2019 08:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213703/belvoir-lettings-revenues-rise-as-rental-market-defies-property-wobble-213703.html
<![CDATA[RNS press release - Pre-Close Trading Update & Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190131070012_13952762/ Thu, 31 Jan 2019 07:00:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190131070012_13952762/ <![CDATA[Media files - Belvoir Lettings exceeds 2018 target for its assisted acquisitions programme ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11798/belvoir-lettings-exceeds-2018-target-for-its-assisted-acquisitions-programme-11798.html Fri, 11 Jan 2019 11:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11798/belvoir-lettings-exceeds-2018-target-for-its-assisted-acquisitions-programme-11798.html <![CDATA[News - Belvoir Lettings shares rise as it hails success of its assisted acquisitions programme ]]> https://www.proactiveinvestors.co.uk/companies/news/212294/belvoir-lettings-shares-rise-as-it-hails-success-of-its-assisted-acquisitions-programme-212294.html Belvoir Lettings PLC (LON:BLV) shares rose on Thursday after the UK's largest property franchise group exceeded its 2018 target for assisted acquisitions by its franchisees.

The AIM-listed lettings agent said beefing up the assisted acquisitions programme is a core part of its growth strategy.

WATCH: Belvoir Lettings exceeds 2018 target for its assisted acquisitions programme

During 2018, franchisees completed on 26 transactions under the Belvoir-assisted acquisitions programme, increasing the acquired annualised network revenue to £6.9mln; the target for the year had been £6.6mln.

These acquisitions are expected to add in excess of £600,000 a year of recurring management service fees, which is the main revenue stream for the group. It also adds more than 4,400 managed properties, increasing the portfolio by 7%.

The Belvoir Group now represents over 62,000 managed properties.

Feeling blessed. Watching my client open the door to his new home after being street homeless for 4 years. I really do love my job ????❤????@p3warwickshire @ Big love to Belvoir Lettings for making it happen.

— Helen Chase (@HelenChaseP3) August 31, 2018

In comparison with 2017, the average size of the business acquired increased by 85% to £266,000 in 2018 from £144,000 annual revenue in 2017. This reflects a contraction of the number of agents in the sector not only among the smaller operators but also many of the larger independent agents, as the impact of the number of landlords selling their properties due to a less favourable tax regime and the increased regulation on lettings agents took effect.

Belvoir provides funding of up to 30% of the purchase price through its assisted acquisitions team. In 2018, the group contributed £660,000 in total towards purchases, representing around 9% on average of the purchase price.

CEO lauds franchise opportunities

“The Assisted Acquisitions programme, now in its sixth year, has gone from strength to strength and continues to grow. Since 2014 we have provided both commercial and financial support to 70 of our franchise owners, many of whom have doubled the size of their business overnight,” said Dorian Gonsalves, the chief executive officer of Belvoir Lettings.

“We continue to witness consolidation within the sector, a trend which supports our 2018 prediction that there will be 20% fewer agents by the end of 2020. This is evidenced by our acquisition opportunities pipeline being far greater than in previous years,” he added.

“Our franchisees are professionally and financially equipped to take advantage of these opportunities and we currently have 83 franchise owners who are actively searching for a suitable match within their territory. Belvoir is here to support our franchisees' entrepreneurial growth ambitions, which will benefit the group and our shareholders alike," Gonsalves concluded.

In afternoon trading, shares in Belvoir Lettings were up 1.1% at 92.50p.

 -- Adds share price --

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Thu, 10 Jan 2019 07:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212294/belvoir-lettings-shares-rise-as-it-hails-success-of-its-assisted-acquisitions-programme-212294.html
<![CDATA[RNS press release - Assisted Acquisitions Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190110070003_13929596/ Thu, 10 Jan 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20190110070003_13929596/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181218170033_13908573/ Tue, 18 Dec 2018 17:00:33 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181218170033_13908573/ <![CDATA[RNS press release - Director/PDMR Dealing ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181205113001_13892578/ Wed, 05 Dec 2018 11:30:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181205113001_13892578/ <![CDATA[RNS press release - Director/ PDMR Dealings ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181203070008_13888006/ Mon, 03 Dec 2018 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181203070008_13888006/ <![CDATA[Media files - Belvoir Lettings acquisition of MAB Gloucester is a 'win-win' says CEO Gonsalves ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11328/belvoir-lettings-acquisition-of-mab-gloucester-is-a-win-win-says-ceo-gonsalves-11328.html Tue, 27 Nov 2018 09:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11328/belvoir-lettings-acquisition-of-mab-gloucester-is-a-win-win-says-ceo-gonsalves-11328.html <![CDATA[News - Belvoir Lettings strengthens mortgage broking division with £3.6mln West Country buy ]]> https://www.proactiveinvestors.co.uk/companies/news/210007/belvoir-lettings-strengthens-mortgage-broking-division-with-36mln-west-country-buy-210007.html Belvoir Lettings PLC (LON:BLV) has strengthened its mortgage broking operation Brook Financial with the acquisition of MAB (Gloucester) Limited for £3.6mln net in cash.

MAB Glos is the largest appointed representative firm of AIM-listed Mortgage Advice Bureau PLC (LON:MAB1), one of the UK's leading networks for mortgage intermediaries.

WATCH: Belvoir Lettings acquisition of MAB Gloucester is a 'win-win' says CEO Gonsalves

Belvoir intends to use MAB Glos to extend its mortgage advice business across the country using its existing lettings office network to boost penetration of financial services into Belvoir's client base.

Dorian Gonsalves, chief executive, said following the acquisition the group will total 364 offices, including Brook, operating under the Belvoir Group.

“MAB Glos will provide the basis for developing a network of financial advisers to support our franchisees at a local level, in addition to the existing mortgage advice services delivered centrally by Brook.

Michelle Brook, the head of Brook Financial, will run the enlarged mortgage arm with all four of MAB Glos's business development managers staying on.

MAB Glos has a network of 63 Business Partners, who operate on a self-employed basis licensed with Mortgage Advice Bureau providing support, a website and marketing.

Its network is currently based primarily in the Midlands, the South West and Wales and in the 12 months to August generated revenue of £3.87mln and a profit before tax of £575,000.

Over the past three years, the number of mortgage advisers within the MAB Glos network has grown from 32 to 88, of which 22 have joined in 2018.

These additional advisers are expected to boost business further in 2019 and 2019.

Belvoir added that trading has continued well and is in line with market expectations.

“This will give our existing property franchisees the ability to 'build a business within a business' by either utilising an existing MAB Glos mortgage adviser or taking on their own new adviser on-site.”  

 

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Tue, 27 Nov 2018 08:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210007/belvoir-lettings-strengthens-mortgage-broking-division-with-36mln-west-country-buy-210007.html
<![CDATA[RNS press release - Acquisition & Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181127070017_13881062/ Tue, 27 Nov 2018 07:00:17 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20181127070017_13881062/ <![CDATA[News - Belvoir Lettings to list all properties with OnTheMarket portal ]]> https://www.proactiveinvestors.co.uk/companies/news/207635/belvoir-lettings-to-list-all-properties-with-onthemarket-portal-207635.html Belvoir Lettings PLC (LON:BELV) is to advertise all of its properties on digital property platform OnTheMarket PLC (LON:OTMP).

With 61,000 properties, franchise group Belvoir is the UK’s second largest letting agency and will actively promote the portal with digital and branch-based marketing activity.

WATCH: Belvoir 'continuing to outperform both UK lettings and sales markets'

Belvoir has a network of 300 franchised lettings and estate agents branded Belvoir!, Northwood and Newton Fallowell.

Dorian Gonsalves, Belvoir’s chief executive, said: "We have for some time believed that the property portals landscape was ripe for disruption.

“OnTheMarket is the first serious contender for several years to be injecting genuine competition in the interests of agents and property-searchers alike.

“It is agents who provide the portals with the majority of their content and income.

“It is also agents who serve their clients and property-searchers on the ground in selling, letting, buying and renting property.”

Ian Springett, OnThe Market's chief executive, added:  "While we have already been working with some individual offices within the Belvoir Group, the decision by the group overall to support OnTheMarket is a strong testament to our success to date in increasing our agent base.”

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Tue, 23 Oct 2018 07:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207635/belvoir-lettings-to-list-all-properties-with-onthemarket-portal-207635.html
<![CDATA[News - Belvoir Lettings quietly expanding as others struggle with property uncertainty ]]> https://www.proactiveinvestors.co.uk/companies/news/204829/belvoir-lettings-quietly-expanding-as-others-struggle-with-property-uncertainty-204829.html Letting agent Belvoir Lettings PLC (LON:BELV) is on course for a 22nd year of profits growth after a strong first half.

Underlying profits jumped 19% to £2.43mln in the six months to June, which is impressive, given the uncertainties surrounding UK property at present.

WATCH: Belvoir 'continuing to outperform both UK lettings and sales markets'

At 61,000 properties under its management, Belvoir is the UK’s second largest lettings agent.

Countrywide is the largest with 110,000 properties but it has faced no end of trauma over the past year due to the slowing house sales market, culminating recently in a £140mln rescue fund-raise.

Belvoir’s exposure to the house sales market is less than 20% of its business and in contrast to Countrywide, its franchisees have been expanding operations.

Most of its network is run through a franchise operation and helped by Belvoir’s assisted-acquisition programme, they made 20 acquisitions in the first six months, adding turnover of £5.1mln.

READ: Belvoir Lettings lifts profits by 19% as franchisees shrug off tough property market

Belvoir benefits as the enlarged turnover eventually feeds through into its management service fees (MSF).

MSF accounted for £4mln of the first half’s £6.1mln revenue. 

Dorian Gonsalves, Belvoir’s chief executive, is ex-Countrywide and keeping an eye on what is happening at his former employer.

At present, though, Belvoir has a market cap of £37mln and taking on all of Countrywide’s lettings book would be a significant step.

In the meantime, Gonsalves would welcome some clarity over when proposed changes to the tenancy rules are to come into force.

A proposed ban on tenant fees and increased regulations to professionalise the lettings sector were first mooted in 2016 but have yet to be enacted, something that is clouding investors’ perception of the lettings business.

Need for clarity over rental changes

Gonsalves believes the changes will be introduced in April next year and combined with the tax increases introduced by George Osborne when he was Chancellor might see up to 20% of letting agents close over the next three years.

Again, that is an opportunity, he says, but concedes Belvoir will not escape unscathed if there is a sharp reduction in the number of landlords renting.

But Belvoir’s network has shown itself to be resilient so far and once the rules do come in, he is confident the company’s franchisees will adapt.

Gonsalves says the market share of online entrants into the lettings market is just over 8% with nowhere near the disruption the house sales market has seen from IT-based entrants.

The strong service element required for running a successful lettings agency is a major barrier to entry, he adds.

Own platform

Belvoir has started to develop its own platform that will also allow landlords on its books instant access to records, advice, tradespeople and so on.

Half-year profits jumped 66% to £2.83mln, though this included a write-back on the earn-out contribution for the acquisition of Northwood.

Stripping that out, half-year underlying profits rose to £2.43mln from £2.05mln on sales of £6.12mln (£5.14mln).

Northwood’s final settlement will cost £4.16mln which will be met either through cash or shares or a combination of the two.

Shares are at 108p.

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Thu, 13 Sep 2018 09:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204829/belvoir-lettings-quietly-expanding-as-others-struggle-with-property-uncertainty-204829.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180912175621_13788754/ Wed, 12 Sep 2018 17:56:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180912175621_13788754/ <![CDATA[Media files - Belvoir 'continuing to outperform both UK lettings and sales markets' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10433/belvoir-continuing-to-outperform-both-uk-lettings-and-sales-markets--10433.html Tue, 11 Sep 2018 08:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10433/belvoir-continuing-to-outperform-both-uk-lettings-and-sales-markets--10433.html <![CDATA[News - Belvoir Lettings lifts profits by 19% as franchisees shrug off tough property market ]]> https://www.proactiveinvestors.co.uk/companies/news/204607/belvoir-lettings-lifts-profits-by-19-as-franchisees-shrug-off-tough-property-market-204607.html Belvoir Lettings PLC (LON:BLV) posted strong first-half profits growth at its franchise network continued to expand.

The group now has 61,000 properties under its management, making it the second in the lettings market behind struggling Countrywide.

Countrywide has had all kinds of trouble over the past six months but Dorian Gonsalves, Belvoir's chief executive, said its assisted acquisition scheme, where it helps its franchisees acquire local rivals, was proving a great success.

WATCH: Belvoir Lettings says trading is going "pretty well"

Some 20 deals with £5.1mln of historic turnover were completed during the half year and nine franchise owners joined the group.

Revenues in the half year to June rose 19% to £6.1mln, with underlying profits rising by a similar percentage to £2.43mln.

Most of Belvoir’s agents operate under a franchise arrangement and management service fees increased 6% to £4.02mln.

Statutory profits jumped 66% as Belvoir wrote back some of the potential earn-out on its Northwood acquisition.

The interim dividend was unchanged at 3.4p.

Gonsalves said the group had continued to outperform both the UK’s sales and lettings markets.

“Despite the tough market conditions, Belvoir has achieved a promising start to the second half, and as such the company is on track to meet management expectations for the year."

 

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Tue, 11 Sep 2018 07:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204607/belvoir-lettings-lifts-profits-by-19-as-franchisees-shrug-off-tough-property-market-204607.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180911070018_13785568/ Tue, 11 Sep 2018 07:00:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180911070018_13785568/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130839_13761608/ Mon, 20 Aug 2018 13:08:39 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130839_13761608/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130621_13761602/ Mon, 20 Aug 2018 13:06:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130621_13761602/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130532_13761601/ Mon, 20 Aug 2018 13:05:32 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180820130532_13761601/ <![CDATA[RNS press release - Board Changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180625070010_13691221/ Mon, 25 Jun 2018 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180625070010_13691221/ <![CDATA[Media files - Belvoir Lettings says trading is going "pretty well" ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9391/belvoir-lettings-says-trading-is-going-pretty-well--9391.html Tue, 29 May 2018 15:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9391/belvoir-lettings-says-trading-is-going-pretty-well--9391.html <![CDATA[RNS press release - Results of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180529123004_13658261/ Tue, 29 May 2018 12:30:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180529123004_13658261/ <![CDATA[RNS press release - AGM Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180529070012_13657030/ Tue, 29 May 2018 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180529070012_13657030/ <![CDATA[News - Belvoir Lettings says trading in first four months of current financial year has “continued well” ]]> https://www.proactiveinvestors.co.uk/companies/news/197732/belvoir-lettings-says-trading-in-first-four-months-of-current-financial-year-has-continued-well-197732.html Belvoir Lettings PLC (LON:BLV) said that trading during the first four months of the current financial year has continued well and is in line with its expectations.

In a trading update ahead of its annual general meeting on Tuesday, the UK’s largest property franchise said revenue increased from its three key income streams of residential lettings, property sales and financial services.

WATCH: Belvoir Lettings says trading is going "pretty well"

Belvoir pointed out that its franchisees - across all three brands - completed on ten portfolio transactions in the period under its Assisted Acquisitions programme, adding £3.2mln network revenue, nearly 2,500 managed properties and £0.3mln per annum of recurring management service fees (MSF).

The firm said it is seeing an unprecedented number of smaller independent lettings agents choosing to withdraw from the sector in the face of increased legislation and the previously announced ban on tenant fees, now expected in the Spring of 2019. 

As a result, it added, there remains a strong pipeline of further opportunities to underpin the group’s growth target for 2018.

Belvoir also said that Brook Financial Services, which it acquired in 2017, outperformed by over 20% the same period last year - when not part of the group - as its offering of financial services was rolled out across its networks. 

Dorian Gonsalves, Belvoir Letting’s CEO, commented: “The Group has seen a healthy start to 2018 including increased MSF from property sales despite a widely reported background of softening house transactions.” 

He added: “A further ten of our franchise owners have substantially grown their businesses by acquiring a local competitor and we are seeing our lettings-biased Belvoir and Northwood franchisees extending their services to encompass property sales and related financial services.” 

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Mon, 28 May 2018 07:05:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197732/belvoir-lettings-says-trading-in-first-four-months-of-current-financial-year-has-continued-well-197732.html
<![CDATA[News - Belvoir Lettings aims to take advantage of property market disruption ]]> https://www.proactiveinvestors.co.uk/companies/news/194751/belvoir-lettings-aims-to-take-advantage-of-property-market-disruption-194751.html Belvoir Lettings PLC (LON:BLV) has navigated its way through the current malaise affecting the property sector with some dexterity.

The AIM-listed business is the UK’s largest franchised property agent and this structure has been a substantial help, believes Dorian Gonsalves, chief executive.

WATCH: Belvoir Lettings in good shape as profits hit another record

“It’s their life in many cases,” he told Proactive when talking about the franchisees, so when problems arise, their attitude is how can we fix it.

Belvoir’s recent annual results demonstrated the resilience of its model, which now runs to 300 offices and four networks.

Other estate agents, notably Countrywide and Foxtons, have struggled with weak house sales and inroads into the market by online agents such as Purplebricks.

Belvoir though saw franchise fees rise by 23% to £7.9mln, and underlying profits climb by 39% to £4.9mln.

Some 17% of the fees rise related to a full year inclusion of Northwood. 

Organic growth and the acquisition of 23 new outlets by its networks helped sales rise by 14% to £11.3mln in the year to December.

21st year of profit growth

It was the 21st consecutive year of profit growth for the company, with the final divided also increased.

Some 80% of Belvoir’s revenue comes from letting, which insulates it to a large degree from the ‘disruptors’.

Adding new outlets also has a big impact on a largely fixed cost base.

This year, 2018, eight franchisees have been added to the networks already, bringing in an extra £2.4mln of gross revenue.

Even so, Belvoir is not independent of industry trends and Gonsalves said there were signs rents are slowing while some voids are taking longer to fill.

Property shortfall

But he added there remains a shortfall of properties to buy and its franchisees are well-positioned to take advantage from any further shake-out in the market.

That is very possible. There are 10,000 independent property agents and challenges such as the imminent ban on tenant fees will hit some of these hard.

Around 75 of Belvoir’s franchisees currently are actively looking to acquire, through the company’s assisted-acquisition programme, says Gonsalves.

Under this scheme, Belvoir helps franchisees that want to expand by plugging any equity gap or shortfall (up to 30%) in their funding for a deal.

It’s a win-win for the franchisee and Belvoir, according to Gonsalves.

A typical franchise employs 4-5 people and looks after 250 properties but if a franchisee can acquire a similar business within its own area, it can just tack on the revenue without the cost, sending profits climbing.

Belvoir meanwhile gets a boost from higher management services fees (MSF) from its franchisee and interest on its loan.

Aim-listed dividend payer

Mortgage broking firm Brooks meanwhile was acquired to offer financial services to buyers, sellers, tenants and landlords who want it, while the policy of helping landlords sell properties has also been expanded to boost client retention.

The increased final payment of 3.5p (2016:3.4p) brought the total dividend for the year of 6.9p (2016: 6.8p), which at the current share price of 105p, gives a yield of 6.6%.

"Looking to 2018, the board remains confident that the Belvoir Group will benefit from further consolidation within the sector, further integration of our recent acquisitions to deliver additional efficiencies and diversification of property-related services offered through our franchised networks, to ensure a continued increase in shareholder value," said the annual statement.

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Wed, 11 Apr 2018 12:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194751/belvoir-lettings-aims-to-take-advantage-of-property-market-disruption-194751.html
<![CDATA[Media files - Belvoir Lettings in good shape as profits hit another record ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9026/belvoir-lettings-in-good-shape-as-profits-hit-another-record-9026.html Tue, 10 Apr 2018 08:37:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9026/belvoir-lettings-in-good-shape-as-profits-hit-another-record-9026.html <![CDATA[News - Belvoir Lettings shrugs off housing uncertainty and lifts profits ]]> https://www.proactiveinvestors.co.uk/companies/news/194591/belvoir-lettings-shrugs-off-housing-uncertainty-and-lifts-profits-194591.html Belvoir Lettings PLC (LON:BLV) posted record profits and healthy revenue growth in 2017 as it shrugged off the effects of a sluggish housing market.

Other estate agents, notably Countrywide and Foxtons, have struggled with weak house sales and inroads into the market by online agents such as Purplebricks.

Watch: Belvoir Lettings in good shape as profits hit another record

Belvoir, the UK’s largest franchised property agent, said organic growth and the acquisition of 23 (nine) new outlets by its networks helped sales rise by 14% to £11.3mln in the year to December.

Franchise fees due to Belvoir rose by 23%, with underlying profits climbing by 39% to £4.9mln.

Dorian Gonsalves, chief executive, said it was the 21st consecutive year of profit growth for the company.

Some 80% of Belvoir’s revenue comes from letting and Gonsalves said its franchisees are ‘incredibly motivated’ to grow their businesses

This year, 2018, had started well with eight franchisees having added to their networks already, bringing in an extra of £2.4mln of revenue.

Mainstream estate agency Newton Fallowell is also seeing higher sales and a better pipeline than a year ago.

Gonsalves expects some slowing of the lettings market over the year but said there remains a shortfall of properties to buy and its franchisees are well-positioned to take advantage from any further shake-out in the market.

The final dividend increases to 3.5p (2016:3.4p) giving a total dividend for the year of 6.9p (2016: 6.8p).

 

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Tue, 10 Apr 2018 07:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194591/belvoir-lettings-shrugs-off-housing-uncertainty-and-lifts-profits-194591.html
<![CDATA[RNS press release - Preliminary results for the year ended 31 Dec 2017 ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180410070005_13597800/ Tue, 10 Apr 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180410070005_13597800/ <![CDATA[RNS press release - Board changes ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180326070005_13580285/ Mon, 26 Mar 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180326070005_13580285/ <![CDATA[News - Belvoir Lettings expands portfolio with 624 new properties to boost its network income ]]> https://www.proactiveinvestors.co.uk/companies/news/192403/belvoir-lettings-expands-portfolio-with-624-new-properties-to-boost-its-network-income-192403.html Belvoir Lettings PLC (LON:BLV) has acquired an additional 624 managed properties that it estimates will increase its network income by almost £1mln per annum.

The AIM-listed property franchise group said the acquired properties, located within Welwyn Garden City and St Albans, will increase group management service Fees (MSF), Belvoir’s main revenue stream, by £400,000 in the first six years of ownership.

WATCH: Belvoir Lettings gearing up for further opportunities for consolidation

The groups said the purchase was funded entirely by its Hitchin and Welwyn Garden City franchisee, through their own personal finances and will add the territory of St Albans to their portfolio.

The company added that three other franchises in Derby West, Hendon and Corby have recently acquired a local lettings portfolio, which it said would collectively add £1mln of network revenue and £122,000 of MSF per annum, against which Belvoir provided £193,000 of financial support.

Dorian Gonsalves, Belvoir's chief executive, commented: "In the recent trading update, we reported that we had doubled the number of transactions under our Assisted Acquisitions programme in 2017 and promised that there was a strong pipeline expected to complete in the first quarter of 2018. 

“We have already delivered on that promise within just two months with these four transactions equating to 75% of the total value of 2017 franchisee acquisition transactions, adding around 1,335 managed properties to the Belvoir network.”

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Thu, 01 Mar 2018 07:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192403/belvoir-lettings-expands-portfolio-with-624-new-properties-to-boost-its-network-income-192403.html
<![CDATA[RNS press release - Further Expansion ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180301070003_13550069/ Thu, 01 Mar 2018 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180301070003_13550069/ <![CDATA[Media files - Belvoir Lettings gearing up for further opportunities for consolidation ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8720/belvoir-lettings-gearing-up-for-further-opportunities-for-consolidation-8720.html Thu, 08 Feb 2018 12:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8720/belvoir-lettings-gearing-up-for-further-opportunities-for-consolidation-8720.html <![CDATA[RNS press release - Notification of Transactions of PDMR ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180208070005_13525651/ Thu, 08 Feb 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180208070005_13525651/ <![CDATA[News - Belvoir Lettings "excited by the continued opportunities for consolidation within the sector" ]]> https://www.proactiveinvestors.co.uk/companies/news/191274/belvoir-lettings-excited-by-the-continued-opportunities-for-consolidation-within-the-sector--191274.html Belvoir Lettings PLC (LON:BLV), the UK's largest property franchise, traded in line with expectations in 2017.

The full-year results will be released on April 10 but in a pre-close trading update, the group revealed it performed well throughout the year reflecting the continued underlying organic growth in franchise management service fee income, a record number of portfolio acquisitions at a franchisee level and the integration of recent acquisitions.

READ: Belvoir franchisees beat 2017 target for portfolio acquisitions

Management service fees increased by 22% year-on-year, while group revenue rose 13% to £11.1mln from £9.9mln in 2016, helped by a full-year contribution from Northwood and the mid-year acquisition of Brook.

The group ended the year with a positive bank balance of £1.3mln, down from £1.5mln a year earlier, after shelling out £1.5mln in cash to acquire Brook.

There is a strong pipeline of portfolio acquisition opportunities, many of which are expected to complete in the first quarter, Belvoir said.

WATCH: Belvoir gearing up for further opportunities for consolidation

"In 2017 Belvoir successfully supported franchise growth across all our brands through our Assisted Acquisitions programme and by promoting additional revenue streams such as property sales and property related financial services,” said Dorian Gonsalves, the chief executive officer of Belvoir.

“The board is excited by the continued opportunities for consolidation within the sector with the Belvoir Group well placed to take advantage at both a local and national level. We anticipate that smaller independent agents will continue to look to exit following increased regulation and the prospect of the ban on tenant fees in 2019, and our acquisitions team is working closely with our entrepreneurial franchisees who are keen to invest to grow their business," he added.

 

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Wed, 07 Feb 2018 07:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191274/belvoir-lettings-excited-by-the-continued-opportunities-for-consolidation-within-the-sector--191274.html
<![CDATA[RNS press release - Pre-Close Trading Update & Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180207070002_13524000/ Wed, 07 Feb 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180207070002_13524000/ <![CDATA[News - Belvoir franchisees beat 2017 target for portfolio acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/189439/belvoir-franchisees-beat-2017-target-for-portfolio-acquisitions-189439.html Belvoir Lettings PLC (LON:BLV), the UK’s largest property franchise, has told investors it exceeded its target for portfolio acquisitions by its franchisees last year.

During 2017 franchisees completed 23 acquisitions, increasing annualised network revenues by over £3.3mln, 10% ahead of the £3mln target set by the board.

58,000 managed properties

The acquisitions have added an ongoing £350,000 per annum of recurring management service fees (MSF) which is the main revenue stream for the group.

They also added 2,264 managed properties to the group’s portfolio, which now stands at more than 58,000, a year-on-year increase of 4%.

Of the 23 acquisitions completed last year, 14 were from the Northwood network, one from Newton Fallowell and the remaining eight from Belvoir.

READ: Belvoir Lettings says Brook Financial Services' net written business up 57% in two months since purchase

As part of the Assisted Acquisitions programme, Belvoir loans the franchisees some of the cash required to make the purchases.

It contributed £351,000 in 2017 to support the acquisitions. That’s around 10% of the total consideration, and while the group is happy to loan up to 30% of the deal value, most franchisees use their own cash reserves or source loans from other providers.

More deals on the way, says CEO

“The Assisted Acquisitions programme has proved to be very popular within the recently acquired Newton Fallowell and Northwood networks,” said chief executive Dorian Gonsalves.

“In addition to exceeding our target completions for 2017, we ended the year with a very robust pipeline of deals currently with lawyers which we would expect to complete in the first quarter of 2018.

“The appetite for securing portfolio acquisitions reflects the entrepreneurial spirit of our franchisees who are adapting to changes within the sector and seeing opportunity for growth as the sector consolidates.”

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Wed, 03 Jan 2018 07:42:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/189439/belvoir-franchisees-beat-2017-target-for-portfolio-acquisitions-189439.html
<![CDATA[RNS press release - Assisted Acquisitions Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180103070002_13483053/ Wed, 03 Jan 2018 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20180103070002_13483053/ <![CDATA[News - Belvoir Lettings says Brook Financial Services' net written business up 57% in two months since purchase ]]> https://www.proactiveinvestors.co.uk/companies/news/188603/belvoir-lettings-says-brook-financial-services-net-written-business-up-57-in-two-months-since-purchase-188603.html Belvoir Lettings PLC (LON:BLV) said Brook Financial Services has reported £570,000 of net written business in the two months since its acquisition, which is up 57% on October and November 2016.

In a statement, Belvoir - the UK's largest property franchise group – said Brook’s net written business is also running at over 40% ahead of the average business achieved in the first seven months of 2017, prior to being acquired by the group.

READ: Lettings agent Belvoir slates Hammond for lack of Budget help for landlords

Brook was acquired by the group in July 2017 for a total consideration of £2.0mln with a view to achieving “materially greater penetration of Belvoir’s client base and increasing the financial services fees generated on property sales across all of Belvoir’s multi-brand networks. “

The firm said Brook currently has three new mortgage advisers in training and is actively recruiting further advisers to provide additional capacity. 

It added that, to date, the focus has been on the group’s predominantly estate agency network, Newton Fallowell, with Brook now working with 17 offices within that network where previously no financial services had been offered. 

Of the 39 Newton Fallowell offices, including 8 which had existing arrangements, 66% now offer financial services and other mortgage related products. 

In addition, Brook has continued to grow its portfolio of independent estate agents which act as introducers to it.

Increased revenue in line with acquisition projections

Belvoir said Increased revenue resulting from a greater number of policies being written and a higher case value is being reported in line with the group’s projections as at acquisition.

Dorian Gonsalves, Belvoir’s CEO, commented: “The roll out to the Newton Fallowell offices is underway and from January 2018, Brook will start to work with some of the more sales-focused Belvoir and Northwood offices.  This is a key strategy for growth for both our franchisees and the Group.”

He added: “The recent significant growth, against the background of falling mortgage approvals as the housing market is perceived to be cooling overall, is evidence of Brook’s ability to outperform the market.”

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Tue, 12 Dec 2017 07:10:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188603/belvoir-lettings-says-brook-financial-services-net-written-business-up-57-in-two-months-since-purchase-188603.html
<![CDATA[RNS press release - Update on the Brook acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20171212070002_13461535/ Tue, 12 Dec 2017 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/4020/LSE20171212070002_13461535/