Belvoir Lettings PLC Assisted Acquisitions Update (6691M)
January 10 2019 - 1:00AM
UK Regulatory
TIDMBLV
RNS Number : 6691M
Belvoir Lettings PLC
10 January 2019
10 January 2019
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.
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Assisted Acquisitions Update
Belvoir lettings plc (AIM: BLV), the UK's largest property
franchise, is pleased to report that it exceeded its 2018 target
for Assisted Acquisitions by its franchisees, a core part of
Belvoir's growth strategy.
During 2018 franchisees completed on 26 transactions under the
Belvoir Assisted Acquisitions programme, increasing the acquired
annualised network revenue to GBP6.9 million which exceeded the
ambitious GBP6.6 million target, double the 2017 level, set by the
Board. These acquisitions are expected to add in excess of
GBP600,000 p.a. of recurring Management Service Fees (MSF), the
main revenue stream for the Group. It also adds over 4,400 managed
properties, increasing the portfolio by 7%. The Belvoir Group now
represents over 62,000 managed properties.
The Assisted Acquisitions programme has been embraced by all
three networks within the Belvoir Group with 11 taken up by the
Belvoir network, 13 by Northwood and 2 by Newton Fallowell. In
comparison with 2017, the average size of the business acquired
increased by 85% from GBP144,000 annual revenue in 2017 to
GBP266,000 in 2018. This reflects a contraction of the number of
agents in the sector not only amongst the smaller but also many of
the larger independent agents, as the impact of the number of
landlords selling their properties due to a less favourable tax
regime and the increased regulation on lettings agents takes
effect.
Belvoir has supported many of its franchise owners to take
advantage of these changes within the sector, through its highly
skilled in-house Acquisitions team and by providing internal
funding of up to 30% where required. In 2018 the Group contributed
GBP660,000, approximately 9% of the total consideration, by means
of a loan; whilst 17 of the deals were funded entirely by
franchisees utilising their own cash reserves or sourcing funds
from other loan providers.
A more detailed pre-close trading update for the year ended 31
December 2018 will be provided on Thursday 31 January 2019.
Dorian Gonsalves, CEO of Belvoir, commented;
"The Assisted Acquisitions programme, now in its sixth year, has
gone from strength to strength and continues to grow. Since 2014 we
have provided both commercial and financial support to 70 of our
franchise owners, many of whom have doubled the size of their
business overnight.
We continue to witness consolidation within the sector, a trend
which supports our 2018 prediction that there will be 20% fewer
agents by the end of 2020. This is evidenced by our acquisition
opportunities pipeline being far greater than in previous years.
Our franchisees are professionally and financially equipped to take
advantage of these opportunities and we currently have 83 franchise
owners who are actively searching for a suitable match within their
territory. Belvoir is here to support our franchisees'
entrepreneurial growth ambitions, which will benefit the Group and
our shareholders alike."
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, Phil Davies, Will Goode 0207 894 7000
Buchanan
Charles Ryland, Victoria 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 364 offices
across four brands specialising in residential lettings, property
management, residential sales and property-related financial
services. With its Central Office in Grantham, Lincolnshire, the
Group manages over 61,000 properties and reported revenue of
GBP11.3m in 2017 making Belvoir the largest property franchise
group in the UK.
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END
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