TIDMBLV
RNS Number : 2231U
Belvoir Group PLC
01 April 2021
This announcement contains inside information.
Final 1 April 2021
BELVOIR!
BELVOIR GROUP PLC
(the "Group", "Company" or "Belvoir")
Earnings Accretive Acquisition
Belvoir Group PLC (AIM:BLV), one of the UK's largest property
franchise groups, is pleased to announce that it has acquired the
entire issued share capital of White Kite Holdings 2021 Limited and
its two subsidiaries, White Kite Limited and Nicholas Humphreys
Franchise Limited (collectively referred to as "Nicholas
Humphreys"), for a total consideration of GBP4.0 million satisfied
in cash from existing cash resources ("the Acquisition").
Nicholas Humphreys operates a national network of estate and
lettings agents trading through 18 franchised and three
corporate-owned offices, and is a full member of the British
Franchise Association (BFA). In addition to offering professional
lettings and property sales, Nicholas Humphreys specialises in
student lettings, giving an overall revenue split of 87% lettings
and 13% sales. Its portfolio of 6,510 managed units provides a
strong underlying recurring revenue stream.
The Nicholas Humphreys franchise network extends from Portsmouth
to Durham, and across from Stoke-on-Trent to Norwich, providing
lettings in mainly University towns. Its three corporate-owned
offices are based in the East Midlands, relatively close to
Belvoir's Central Office in Grantham.
The key strategic driver for the Acquisition is that, like the
Belvoir Group, Nicholas Humphreys is based on a franchise model
underpinned by lettings, making it a good fit for Belvoir's
multi-brand franchise strategy. The Nicholas Humphreys brand will
operate alongside the Group's other brands: Belvoir, Northwood,
Newton Fallowell and Lovelle. The Board anticipates the following
opportunities arising from the Acquisition:
-- Expand the product offering, by introducing sales to the lettings-only franchise offices
-- Improve the financial services offering with support from
Brook Financial Services, another Belvoir Group subsidiary
-- Enhance the legal, compliance, marketing, IT and general
support to franchisees through the Belvoir central franchise
support system
-- Offer the opportunity for accelerated growth under Belvoir's
Assisted Acquisitions programme
During the first quarter of 2021, the White Kite Group was
restructured to remove the Nicholas Humphreys Loughborough
business, this being the original office, which Nick Humphreys
intends to continue operating. In the year to 31 March 2020, based
on unaudited accounts, trading from Nicholas Humphreys, as
acquired, generated revenue of GBP2.8 million and operating profit
of GBP1.0 million, and at that date had net assets of approximately
GBP100,000. The Acquisition is expected to be earnings accretive in
2021. The Board will consider longer term whether to pursue a
strategic franchise solution for the corporate-owned offices in
accordance with its franchise business model.
Having incorporated Nicholas Humphreys into the Group, Belvoir
will be operating through a network of 439 businesses across six
distinct brands with a combined portfolio of 71,787 managed
properties.
Dorian Gonsalves, CEO of Belvoir, commented :
"The acquisition of Nicholas Humphreys demonstrates again that
Belvoir is delivering on its strategic objective of investing in
successful franchise businesses that are aligned with our
multi-brand franchise model, where there is scope for further
growth as part of the Group. With its bias towards lettings, the
Nicholas Humphreys business is underpinned by a strong recurring
revenue stream, whilst offering the opportunity to roll out
Belvoir's existing expertise in sales and financial services across
the network. Having funded the Acquisition from cash reserves, it
will be immediately earnings accretive, driving enhanced returns
for our shareholders.
"The business, founded in 1998, is a real credit to Nick
Humphreys, who has built it into a highly successful franchise
operation with full BFA accreditation. We extend a warm welcome to
the Nicholas Humphreys staff and franchisees, and believe that as
part of the Belvoir Group, we can strengthen further the offering
to the Nicholas Humphreys franchises enabling them to achieve their
own business growth potential."
Nick Humphreys, Managing Director, commented:
"I would like to take this opportunity to thank our franchisees
and staff for their part in building Nicholas Humphreys into the
recognised brand that it is today. I have known for some time that
Belvoir would be the right home for the Nicholas Humphreys network.
Belvoir has the experience of both lettings and franchising to
provide the necessary professional support to our franchisees and I
look forward to seeing the network flourish as part of the Belvoir
Group."
For further details:
Belvoir Group PLC 01476 584900
Dorian Gonsalves, Chief Executive Officer investorrelations@belvoirgroup.com
Louise George, Chief Financial Officer
www.belvoirgroup.co m
finnCap
Julian Blunt, Teddy Whiley (Corporate Finance)
Tim Redfern (ECM)
www.finncap.com +44 (0) 20 7220 0500
Buchanan +44 (0) 20 7466 5000
Charles Ryland, Kim Looringh-van Beeck
& Tilly Abraham
Notes:
About Belvoir Group PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 439 offices
across six brands specialising in residential lettings, property
management, residential sales and property-related financial
services. With its Central Office in Grantham, Lincolnshire, the
Group manages 71,787 properties and in 2019 reported record
revenues of GBP19.3m and achieved its 23(rd) year of unbroken
profit growth.
For further information, please visit: www.belvoirgroup.com
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