The UK’s largest property franchise Belvoir Group PLC (LON: BLV) posted bumper fundamentals for the first half of 2019, with increased input from its financial services branch.
The Group’s revenue jumped 48% on a year-on-year comparison during the first half, up to £9.047 million. This drove an 18% increase in gross profit and 23% bounce in adjusted profit before tax, to £6.198 million and £2.999 million respectively.
Revenue growth was helped by a spike from the Company’s financial services division, which saw its revenues hike from £1.311 million to £3.969 million on-year. This came from the acquisition of MAB Gloucester Ltd. Belvoir said MAB Glos and the underlying business each contributed around 50% of the increase to each profit index.
Its shareholders shared a limited extent of that success. While adjusted EPS grew 21% to 6.9p, basic EPS dropped from 6.9p to 6.1p per share and the Company maintained its 3.4p per share interim dividend.
The Company is now home to 100 financial services advisors, up by 87 from H1 2018 and owing to the acquisition of MAB Gloucester. Financial services contributed 19% of total profits, while lettings made up 66%.
Belvoir comments
Dorian Gonsalves, Chief Executive Officer, responded to the results,
“I am delighted to report another half year of further strategic and trading progress for the Group, with our diversification into financial services building on the growth of the underlying business. Trading across lettings, sales and financial services continues to outperform their respective markets and deliver strong results for the Group.”
“The further take-up of property sales, financial services and franchisee-led acquisitions demonstrates the entrepreneurial spirit of our franchisees in the face of even more challenging market conditions.”
“I am pleased to further report that Belvoir has achieved a promising start to the second half, and as such the Company is on track to meet management expectations for the full year.”
Investor notes
Following the positive update, the Group’s share price rallied 5.38% or 5.94p to 116.44p a share 03/09/19 11:21 BST. Analysts from finnCap reiterated their ‘Corporate’ stance on Belvoir stock. The Company’s p/e ratio stands at 8.91 and their dividend yield looks enticing at 6.21%.
Elsewhere in property development and estate agency news, there have been updates from; Tritax Big Box REIT PLC (LON: BBOX), Intu Properties plc (LON: INTU), LSL Property Services plc (LON: LSL), Countryside Properties PLC (LON: CSP) and Ashley House Plc (LON: ASH).
