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Belvoir Group bounces back after housing market allowed to restart

Snapshot

  • Franchised lettings agency group
  • Also owns financial services business providing mortgages
  • Confident of weathering coronavirus storm
  • Expects swift recovery in lettings market
Belvoir Group PLC

Quick facts: Belvoir Group PLC

Price: 153 GBX

AIM:BLV
Market: AIM
Market Cap: £53.74 m
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What Belvoir does

Belvoir Group PLC (LON:BLV) is the UK’s largest property lettings franchise.

Founded in 1995, the firm currently has over 300 offices managing around 67,000 properties.

The company also operates a financial services arm which provides its customers with mortgages and other property-related financial services products.

How it's doing

In July, Belvoir said its interim revenue and profits were both well ahead of a year ago despite the coronavirus (COVID-19) lockdown.

Since the restrictions on the housing sector were lifted in mid-May, there has been a surge of activity due to pent-up demand, Belvoir said in a trading update for the half-year to June. 

The AIM-listed group’s offices were closed between March 25 and May 13, but June was a record-breaking month for housing activity at its estate agent Newton Fallowell and also in its mortgage division, the firm said.

Group network revenue in June rose by 12% compared with a year earlier, with the lettings business up by 17%.

Net profit is now line with management's pre-COVID-19 expectations set at the start of the year, said Belvoir, which added that it also expects to meet its pre-lockdown targets for the year.

The company intends to reinstate the dividend that was suspended due to the coronavirus uncertainty and possibly even when its interim results are published depending on circumstances.

What the boss says: Dorian Gonsalves, chief executive

"With a return to pre-Covid levels of activity or better since housing sector restrictions were lifted, and the positive impact of the stamp duty reductions still to take effect, we are confident that the Group is well-positioned to capitalise on the current market upturn and to take advantage of the opportunities arising from more challenging economic conditions."

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Inflexion points

  • Recent strategic alliance with Nottingham Building Society
  • Profits and revenues to grow for 23rd consecutive year
  • Housing market reopened earlier than expected
  • Seen swift recovery in lettings market

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