Belvoir Lettings PLC Pre-Close Trading Update & Notice of Results (1111E)
February 07 2018 - 1:00AM
UK Regulatory
TIDMBLV
RNS Number : 1111E
Belvoir Lettings PLC
07 February 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
7 February 2018
BELVOIR LETTINGS PLC
(the "Group" or "Belvoir")
Pre-Close Trading Update
Notice of Full Year Results
Belvoir Lettings PLC (AIM: BLV), the UK's largest property
franchise, today provides the following update on the outcome of
the financial year ended 31 December 2017 and the outlook for
2018.
The Group has performed well throughout the year reflecting the
continued underlying organic growth in franchise management service
fee income, a record number of portfolio acquisitions at a
franchisee level and the integration of recent acquisitions.
Consequently, the Board expects that the performance for the year,
including underlying profit before tax, will be in line with market
expectations.
Dorian Gonsalves, CEO of Belvoir commented:
"In 2017 Belvoir successfully supported franchise growth across
all our brands through our Assisted Acquisitions programme and by
promoting additional revenue streams such as property sales and
property related financial services.
The Board is excited by the continued opportunities for
consolidation within the sector with the Belvoir Group well placed
to take advantage at both a local and national level. We anticipate
that smaller independent agents will continue to look to exit
following increased regulation and the prospect of the ban on
tenant fees in 2019, and our acquisitions team is working closely
with our entrepreneurial franchisees who are keen to invest to grow
their business."
2017 Highlights and Developments
-- Management Service Fees ('MSF') increased by 22%
-- Group revenue up 13% to GBP11.1m (2016: GBP9.9m) reflecting:
o full year contribution from Northwood
o mid-year acquisition of Brook
o revenue reduction from franchising out six corporate-owned
offices
-- The Group now represents over 58,000 managed properties (2016: 55,756)
-- Northwood integration providing reduction in cost base of approximately GBP0.3m
-- Strong letting bias with lettings to sales ratio of 80%:20% (2016: 75%:25%)
-- Belvoir awarded Franchise/Network of the Year at the Negotiator Awards 2017
-- Recruitment of six (2016: seven) new franchise owners into
one new and five existing territories
-- Strong year-end bank balance of GBP1.3m (2016: GBP1.5m) after
GBP1.5m of the Brook acquisition having been settled in cash
-- Franchisee portfolio acquisitions doubled with 23 completed
adding GBP3.4m of network revenue and GBP0.4m of ongoing MSF p.a.
(2016: 11, GBP1.5m and GBP0.2m)
-- There is a strong pipeline of portfolio acquisition
opportunities, many of which are expected to complete in the first
quarter.
The audited results for the financial year ended 31 December
2017 will be announced on Tuesday 10 April 2018.
For further details:
Belvoir Lettings PLC 01476 584900
Dorian Gonsalves, Chief Executive Officer investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Philip Davies, Will Goode
Corporate Finance 0207 894 7000
Caspar Shand Kydd, Alex Pollen
Sales
Buchanan
Charles Ryland, Vicky Hayns, Madeleine Seacombe 0207 466 5000
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 300 offices
across four brands offering a range of specialist services in
property rental, property management, residential lettings, buy to
let and property sales. With its Central Office in Grantham,
Lincolnshire, the Group manages over 58,000 properties and reported
revenue of GBP9.9m in 2016 making Belvoir the largest property
franchise group in the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
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