REG - Belvoir Group PLC - Trading Update - Comfortably Ahead of Expectations

BelvoirAnnouncement

31/01/2022 07:00

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RNS Number : 0603A  Belvoir Group PLC  31 January 2022

This announcement contains inside information.

 
     31 January 2022

 
 

BELVOIR!

 

BELVOIR GROUP PLC

(the "Company" or "Belvoir" or "Group")

 

Trading Update - Comfortably Ahead of Expectations

 

 

Belvoir Group PLC (AIM:BLV), a leading UK property franchise and financial
services Group, is pleased to provide the following pre-close trading update
for the year ended 31 December 2021.

 

The Board is delighted to report that revenue was up 36% to £29.6m* (2020:
£21.7m), a record level, and consequently it expects that the financial
performance for the year, including profit before tax, will be comfortably
ahead of management's expectations.

 

2021 was one of the busiest years in recent times for estate agency, with
residential property sales transactions up 41% on 2020 and 22% ahead of the
six-year average to 2019. In addition to achieving strong growth in the
underlying business, the Group expanded both its property and financial
services networks through the acquisitions of Nicholas Humphreys, a specialist
student lettings franchise, and Nottingham Mortgage Services, the mortgage arm
of The Nottingham Building Society ("The Nottingham").

 

Revenue from the financial services division increased significantly by 49% to
£14.4m* (2020: £9.7m), having grown the network of financial advisers by 20%
to 243 (2020: 202), 17 of whom were advisers for The Nottingham.  Financial
services clearly benefitted from the buoyancy in the residential property
sales market throughout most of 2021, and towards the end of the year
experienced a strong period for remortgage activity.

 

Revenue from the property division was up 27% to £15.2m* (2020: £12.0m). The
acquisition of the Nicholas Humphreys network added £2.2m from its 17
franchised and three corporate-owned offices.  Having franchised out five of
the Lovelle corporate-owned offices towards the end of 2020 as planned, £0.9m
of sales and lettings fees were replaced by £0.1m of Management Service Fees
and overheads were reduced by £0.8m.

 

Management service fees ("MSF"), the key underlying return from franchisees,
was up 18% for the year to £10.7m* (2020: £9.1m).

 

Sales MSF increased significantly by 56% to £2.5m* (2020: £1.6m), with the
extension of the stamp duty holiday ensuring that the residential sales market
remained highly active until September.  Thereafter, the market returned to
more normal transaction levels with unfulfilled demand continuing to fuel
house price inflation.

 

Lettings MSF increased by 10% to £8.2m* (2020: £7.5m) of which £0.3m
related to the Nicholas Humphreys acquisition and newly franchised Lovelle
offices.  The underlying lettings MSF increase of 6% reflected a strong
lettings market.  The demand for more space and a return of young people to
UK cities as offices re-opened post lockdown resulted in insufficient supply
of available properties to rent and as such rents on new tenancies were seen
to rise by around 8%.

 

The highly cash generative nature of the Group's operating activities,
underpinned primarily by the recurring lettings business, has enabled the
Group to reduce net debt by almost two thirds to only £1.3m* (2020: £3.7m),
despite having deployed £4.7m of cash on corporate acquisitions.

 

Dorian Gonsalves, CEO, commented:

 

"All of the Group's business units performed exceptionally well in 2021,
ensuring that our franchisees and advisers were best-placed to take advantage
of a strong property market.  In addition, the Board furthered Belvoir's
successful growth strategy through two corporate acquisitions to enlarge our
franchise and mortgage adviser networks.

 

"With our significant recurring lettings revenue stream and our substantial
financial services client base to draw upon during what is currently a strong
market for remortgages, we believe the Group is well insulated from what could
be a more challenging market in 2022.  Given the resilience and diversity of
our business model, we remain confident that we will continue to perform well
relative to the market as a whole.  Meanwhile, the Board continues to
identify suitable acquisition targets to support continued growth and enhance
shareholder value still further."

 

Notice of Full Year Results

 

The audited results for the financial year ended 31 December 2021 will be
announced on Monday, 4 April 2022.

 

Retail Presentation on Trading Update

 

Dorian Gonsalves, Chief Executive Officer and Louise George, Chief Financial
Officer, will be giving a 20 minute presentation, including Q&A from
participants, at Mello on Monday 7 February, starting at 6pm, taking place via
Zoom Webinar.

 

If you would like to attend the Monday Webinar as a shareholder, you can
register here (https://melloevents.com/mellomonday-7th-february-2022/) for the
event using code SHVIP for 75% off tickets.

 

*unaudited

 

For further details:

 

 Belvoir Group PLC                                     01476 584900

 Dorian Gonsalves, Chief Executive Officer            investorrelations@belvoirgroup.com

 Louise George, Chief Financial Officer

 www.belvoirgroup.com (http://www.belvoirgroup.com)

 finnCap                                                                            +44 (0) 20 7220 0500

 Julian Blunt, Teddy Whiley (Corporate Finance)

 Tim Redfern, Charlotte Sutcliffe (ECM)

 www.finncap.com (http://www.finncap.com)

 Buchanan                                              +44 (0) 20 7466 5000

 Charles Ryland, Victoria Hayns & Tilly Abraham

Notes for editors:

About Belvoir Group PLC

Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a
nationwide property franchise Group with 465 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 71,600 properties and reported record revenues
of £21.7m in 2020 marking Belvoir's 24(th) year of unbroken profit growth.

For further information, please visit: www.belvoirgroup.com

 

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