UK property franchise and financial services group Belvoir Group PLC (AIM:BLV) reported steady growth in its financial and operational performance in today’s interims, despite the ongoing market challenges.
Company revenues saw a 3% increase to £15.9 million in the six months to 30 June 2023., bolstered by a notable 11% surge in financial services revenue, which reached £8.6 million.
Revenue from the property division was 4% lower at £7.3 million, with the group having successfully franchised out two of the Nicholas Humphreys corporate-owned offices as planned. Revenue growth in the underlying property business was 2%, with the impact of increasing rents helping to mitigate the lower level of sales transactions.
Profit before tax rose by 10%, reaching £4.4 million, reflecting the strength of its core lettings business and successful acquisition strategy.
Furthermore, basic earnings per share grew by 3% to 9p, and the interim dividend saw a solid 25% hike, set to be payable on 27 October.
Operationally, Belvoir highlighted the acquisition of BMA Bristol Ltd for £1 million in net cash and the franchising out of Nicholas Humphreys Derby to the branch manager.
Additionally, the company managed to expand its portfolio of managed properties by 2% and now oversees 75,000 properties.
Dorian Gonsalves, chief executive of Belvoir Group, remarked: "The outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions."
Gonsalves also emphasised the resilience of the business model and the group's proven growth strategy, which underpin the ongoing success of the group's performance.
Belvoir Group anticipates a stable housing market going forward, with a slight decrease in house prices, and expects the bank rate to peak at 5.5%.
“Whilst the headlines continued to predict doom and gloom for the property sector, the market actually proved to be fairly resilient in the face of the dual headwinds of high inflation and rising interest rates,” the company said, pointing out that UK house sales transactions in the first half of this year were down 18%, in line with predictions, with 68% of all properties listed having been sold so far in 2023.
The private rented sector is predicted to maintain strong demand, with higher mortgage rates deterring potential homeowners and encouraging some to return to the lettings market.
Gonsalves expressed confidence in the group's performance for the latter half of the year, citing the current pipelines of agreed sales, the level of written mortgage business, and the incremental revenue from recent acquisitions as solid indicators.