Estate agent Belvoir Group PLC (AIM:BLV)’s “robust” set of full-year results showcases a “debt free, entrepreneurial and diverse” company that has vindicated its franchised model and strategy, according to house broker finnCap.
Despite challenging market conditions for the housing sales business, the AIM-quoted group reported an increase in revenue by 14%, gross profit of 6% and a strong net cash position.
finnCap did note that adverse market conditions hit housing sales, but this was offset by “resilient” lettings income and an expanding financial services business.
The broker made no changes to its forecast or target share price of 375p, which represents a 120% upside.
Currently changing hands at 172p, Belvoir’s spot price “ascribes little value to the medium to long-term growth potential from a business that has proven adept at maximising market opportunities both organically and by acquisition”.
finnCap noted an attractive nine-times price-to-earnings ratio and a dividend yield of 5.7% at the time of the note’s publication.