Belvoir Group strengthens market position with acquisition plans
- Belvoir Group full of confidence as profits surge ahead
- Belvoir target raised after exceptionally strong first half
- Belvoir Group confident of strong full-year trading after a stellar first half
Quick facts: Belvoir Group PLC
Price: 270 GBX
Market Cap: £100.69 m
About the company
Belvoir Group PLC is a major UK property franchise group, supporting a network of 439 offices across six distinct brands, specialising in residential lettings, property sales and property-related financial services. We operate through two divisions: a network of property franchisees and a network of financial advisers, which combine to support our customers throughout their property journey.
We aim to extend our market share of the UK property sector through our model of operating multi-brand property franchise networks alongside other complementary property-related services. Our business model is built on 25 years of experience of operating a Central Office team providing support and guidance to a network of entrepreneurial individuals with the drive and local knowledge to deliver success.
Belvoir has a proven track record in delivering growth, even during the 2007 financial crash and the 2020 Covid-19 pandemic, built around a business underpinned by a strong bias towards lettings, providing a reliable recurring revenue stream.
How it is doing
Lettings income rose by 21%, property sales commissions by 78% and financial services fees 51% in the six months to end June 2021.
Interim revenues overall rose by 41% to £13.8mln with franchise fees 26% ahead at £5.2mln, while profits for the half-year jumped 51% to £4.8mln.
Cash generation was also strong, said the AIM-listed group, with net debt at the end of the period just under £4mln (£5.7mln) even with acquisitions.
Belvoir has a range of growth opportunities in a changing, large and fragmented market and has the model (franchise based) and proven management skill to continue to take advantage of them, says the broker.
The UK property franchise and financial services group said revenue in the six months to the end of June was up 41% on the same period of 2020, when trading was hit by lockdown restrictions, and 42% higher on a like-for-like basis on the first half of (pre-pandemic) 2019.
What the brokers say
While the numbers were helped by a very buoyant housing market, this does not detract from the strategic progress the group continues to make said the broker.
The group’s growth strategy has supported 24 years of unbroken profit growth and while 2022 will likely see cooler market conditions, there are increasing signs it will be a gradual return to more normal trading.
What management says
Belvoir Group PLC (AIM:BLV) chief executive Dorian Gonsalves joined Proactive's Stephen Gunnion with details of the company's financial performance for the first half of its 2021 financial year, including a more than 50% rise in profits and an 18% increase in its dividend.
Gonsalves telling Proactive that its further investment in earnings enhancing businesses to expand both the property and the financial services divisions, and high activity levels within all areas of the business at the start of the second half, bode well for a strong trading performance for the full year.