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Belvoir Lettings: DEEP DIVE

Belvoir Lettings sees good prospects for next five years

Belvoir has expanded its operations in mortgages to provide an alternative source of income
OVERVIEW: BLV The Big Picture
Belvoir has expanded into mortgage broking


  • Runs a network of more than 300 lettings and estate agencies, the second largest in the UK

  • Interim revenues up 21% boosted by good performance from recent mortgage acquisitions

  • Recurring revenue rising strongly

  • Assisted acquisitions programme helping franchisees to acquire smaller rivals

  • Boss Dorian Gonsalves optimistic about prospects for next 3-5 years


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."



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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Belvoir Lettings Timeline

April 02 2019

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Belvoir has expanded its operations in mortgages to provide an alternative source of income

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