UK property franchise Belvoir Group PLC (AIM: BLV) booked positive trading performance in the first half, despite challenging market conditions and legislation change.
The Company noted that Management Service Fees rose 5% at their 300 high street lettings and estate agency offices, despite a backdrop of falling sales activity and a ban on tenant fees introduced in June 2019. The Board noted that profits and sales were both ahead of results for the first half of 2018, and that the Group benefitted from the acquisition of financial services network, MAB, in November 2018.
Net banked commission was also up 23% on-year. In turn, the Board were confident of meeting market expectations for the full year.
Belvoir comments
Dorian Gonsalves, CEO, commented,
“The Board was very encouraged by trading during the first half of 2019 with our franchise model proving to be resilient to changes in the sector and our diversification into financial services providing an additional revenue stream for both our franchisees and the Group. We have seen positive results both from our property franchise and our financial services networks, and are confident that the Group is well positioned to take advantage of the opportunities arising from a more challenging market.”
Investor notes
Despite what could have perhaps have been seen as a positive update, the Company’s shares were down 3.96% or 4.50p to 109.00p a share. The Group’s p/e ratio is 9.15 and their dividend yield stands at 6.61%.
Elsewhere in property development and estate agency news, there have been updates from; Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL), Countryside Properties PLC (LON: CSP) and Ashley House Plc (LON: ASH).