Belvoir Group PLC (AIM:BLV) said it is performing “well” and in line with management expectations, with revenue boosted by lettings and financial services.
Revenue for the six months to 30 June 2022 grew by 11% compared with the same period last year, despite 2021 being an "exceptionally strong year" for the property sector, the property franchise and financial services group said in a trading update.
Revenue from the property division rose by 3% in the first half, with management service fees (MSF), the core underlying revenue from franchisees, up by 1% on 2021. Belvoir said growth from lettings MSF mitigated the reduction in sales MSF as the residential property sales market returns to more normal transaction levels.
Revenue from the financial service division climbed 19%, with 12% coming from the acquisitions of Nottingham Mortgage Services in July 2021 and Time Mortgages Experts in May this year.
Belvoir said its financial services network now comprises 301 mortgage advisers, up from 243 a year ago.
"Given the stamp duty holiday and the post-lockdown pent-up demand last year, 2021 was always going to be a hard act to follow for the property sector,” commented CEO Dorian Gonsalves.
“However, the diversity of the group's income streams and the resilience of its franchise business model have enabled Belvoir to achieve underlying growth with increased revenue from lettings and financial services mitigating the shortfall from property sales.
"Meanwhile, the board's ongoing acquisition growth strategy has resulted in further expansion being achieved in both its property and financial services divisions."
The group had cash balances of £5.2mln at the end of June, up from £5.1mln 12 months earlier.
Net debt has risen to £3.1mln from £4mln at end-2021 following the acquisitions of Mr and Mrs Clarke and The Time Group.
Belvoir will announce its results for the six months to 30 June 2022 on 5 September 2022.