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).