Hunters Property confident full-year outlook as it builds on past profits

Hunters Property confident full-year outlook as it builds on past profits

UK property sales and lettings agency Hunters Property PLC (LON: HUNT) profits and shareholder returns both improve in a year-on-year comparison for the first half.

The Group’s revenues contracted marginally, down from £6.7 million for H1 2018, to £6.6 million for H1 2019. For the same period, network income grew 7% to £19.2 million, and adjusted operating profits surged 30% to £1.1 million.

Hunters Property shareholders saw similarly positive progress during the period, with adjusted EPS growing 13% to 2.30p, and their interim dividend for the period hiking 9% to 0.87p per share.

The Company said lettings income grew 12% during the period and customer satisfaction remained strong at 96%. They also opened 3 more branches during the period and said they had invested ‘significantly’ in their software capabilities.

Hunters Property comments

Glynis Frew, Chief Executive, said,

“We have delivered a good set of results in the first six months. The market has been held back by the wider economic uncertainty and the tenant fee ban. However, we continue to roll out our mitigation strategy as regards the ban which is well underway and is on plan.”

“We continue to offer a very attractive solution to suitable, independent businesses who see the advantages of joining the Hunters network. In fact, we are experiencing increasingly strong businesses seeing that benefit.”

“Going forward we believe our exceptional customer service at local level combined with enhanced technical expertise, automated compliance and increased productivity will boost our offering even further. We are investing in our software to advance our strategy to grow and develop the franchise system having recruited a COO with fifteen years’ experience in the industry as well as being bolstered by the support of our network in embracing that change.”

“The continuing work and support displayed by our staff and the franchise network itself is a credit to the Group.  I offer, on behalf of the Board, our gratitude to everyone that is involved.”

Investor notes

The Company’s share price rallied 4.19% or 1.80p to 44.80p per share 04/09/19 08:00 BST. The Group’s p/e ratio is 7.28, their dividend yield is enticing at 5.45%.

Elsewhere in property development and estate agency news, there have been updates from; GCP Student Living plc (LON: DIGS), Barratt Development Plc (LON: BDEV), Belvoir Group PLC (LON: BLV), Tritax Big Box REIT PLC (LON: BBOX), Intu Properties plc (LON: INTU) and LSL Property Services plc (LON: LSL).