REG - Property FranchiseGp - FY25 Trading Update

Property FranchiseAnnouncement

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RNS Number : 8120Q  Property Franchise Group PLC (The)  29 January 2026

29 January 2026

 

THE PROPERTY FRANCHISE GROUP PLC

("TPFG", the "Company" or the "Group")

 

FY25 Trading Update

 

A record year, delivering strong organic growth

 

The Property Franchise Group PLC, the UK's largest multi-brand property
franchisor, announces its trading update for the year ended 31 December 2025,
and is pleased to report significant organic growth during the year with
profitability expected to be slightly ahead of market expectations.

 

Highlights

 

 ·      Group revenue increased 25% to £84.3m (2024: £67.3m)
 o    9% increase on a pro-forma(1) basis
 o    51% (2024: 52%) deriving from recurring revenue sources
 ·      Franchising revenue increased 16% to £47.5m (2024: £40.9m)
 o    9% increase on a pro-forma basis
 o    Lettings MSF(2) pro-forma increased 5% to £21.6m (2024: £20.6m)
 o    Sales MSF pro-forma increased 9% to £10.5m (2024: £9.6m)
 ·      Financial Services revenue increased 26% to £24.2m (2024:
 £19.2m)
 o    10% increase on a pro-forma basis
 ·      Licensing revenue increased by 75% to £12.6m (2024: £7.2m)
 o    3% increase on a pro-forma basis
 ·      Net debt of £2.3m (2024: £9.1m)

 

( 1 ) Proforma basis includes revenues earned by Belvoir Group and GPEA within
H1 2024 prior to acquisition.

( 2 ) Management Services Fees ("MSF")

 

After the successful acquisitions of Belvoir Group PLC ("Belvoir") and GPEA
Limited ("GPEA) in 2024, FY25 was focused on delivering the revenue
opportunities presented by the material scale and market reach of the newly
consolidated Group across the three distinct divisions. The Group has made
excellent progress during the year, with the launch of Privilege within the
Franchising division, improved advisor productivity within Financial Services
and proactive measures taken to drive growth in the Licensing division into
2026.

 

Franchising

 

The Franchising division operates across 15 brands, managing a combined
149,000 rental properties and achieving over 35,000 sales during FY25, making
it the largest property franchise business in the UK.

 

Lettings MSF grew 14% to £21.6m (2024: £19.0m), 5% on a pro-forma basis.
This underlying growth was achieved despite a challenging lettings market
where the Renters Rights Act ("RRA") led to a small change in the number of
managed properties coupled with a lower level of rental inflation of 4%(1)
(2024: 9%). This was countered with the launch of the Group's Privilege
programme, which includes a Rent Guarantee product that provides a new revenue
stream within a franchisee's lettings income.

 

Sales MSF grew 13% to £10.5m (2024: £9.3m), 9% on a pro-forma basis,
performing well over the full year supported by lower costs of borrowing,
buyers who looked to avoid the change in stamp duty in March 2025, and a focus
on driving sales penetration through the franchisee network.

 

Revenue attributed to the Group's 11 owned offices increased by 11% to £7.8m
(2024: £7.0m), of which 5% represents growth on a pro-forma basis.

 

Total revenue from the Privilege programme amounted to £1.5m, a new income
stream for the Group in FY25.

 

(1)Source: Office for National Statistics

 

Financial Services

 

The Financial Services division includes Brook Financial Services, an
authorised representative of the Mortgage Advice Bureau, and Mortgage Genie,
an authorised representative of Primis, both of which provide mortgage and
related financial services to clients with a combined 274 advisors.

 

Financial Services revenue in 2025 grew by 26% to £24.2m (2024: £19.2m),
with pro-forma growth of 10%, as a result of improved volume from a lower cost
of borrowing as well as improved adviser productivity.

 

Total mortgages written in the period increased to 25,000 (2024: 23,000) which
amounted to £4.4bn of lending.

 

Since the year end, the Group has acquired an 85% stake in Smart Advice
Financial Solutions Ltd ("SAFS"), a leading financial services business with
35 advisors for a total consideration of £1.5m, of which 20% has been
deferred to July 2027. The acquisition is expected to be immediately earnings
enhancing.

 

Licensing

 

The Licensing division includes Fine and Country, an upper quartile estate
agency brand operating in the UK and internationally, and the Guild of
Property Professionals, a membership organisation that provides services to
independent agents.

 

Licensing revenue grew by 75% to £12.6m (2024: £7.2m), with pro-forma growth
of 3%.

 

The Fine and Country business has continued to expand, with the addition of 13
new licensees in the year, including eight new international offices across
Uruguay, South Africa, Italy, Spain and the Isle of Man.

 

Current Trading and Outlook

 

Looking ahead to 2026, the Group is focusing on continuing to capitalise and
expand on the additional income opportunities presented by its large scale,
driving further rollout of the Privilege programme, advancing the Group's AI
initiatives, and progressing acquisition opportunities that develop the
Group's platform and support the Financial Services division's buy and build
strategy.

 

Despite rental inflation forecast to remain at c.2%, lettings MSF within
franchising is anticipated to continue to grow in 2026, driven by Privilege, a
renewed franchisee acquisition program and the opportunity to use the
increased compliance requirements of the RRA to convert more self-managed
landlords to the managed property model.

 

TPFG has started 2026 with a strong sales pipeline within the franchising
business of £33.0m (2024: £33.4m), significant given the 2024 comparative
included the impending stamp duty change effect. This strong pipeline,
combined with the expectation of additional Bank of England base rate cuts
during 2026 reducing the cost of lending further, gives us confidence in a
stable market from which to continue to grow this income stream, and the
Financial Services division.

 

The strength of the Group's franchise model and diversified revenue streams
puts TPFG in a strong position and continues to moderate any impact from
market cyclicality. As such, the Group expects further growth across all
divisions in 2026 and looks to the future with confidence.

 

Chief Executive Officer, Gareth Samples, commented: "FY25 was a strong year of
execution, with successful business integration and solid growth in revenue,
profitability and cash. Our significantly increased scale is enabling us to
deliver greater value to our network and enables us to capitalise on
additional revenue opportunities, as demonstrated by the launch of our
Privilege programme. I'm excited about what lies ahead for the Group, as we
build on our consolidated platform to unlock additional growth opportunities
which are underpinned by a resilient business model and a high proportion of
recurring revenues."

 

For further information, please contact:

 

 The Property Franchise Group PLC                                 01202 405 549

 Gareth Samples, Chief Executive Officer                          company.secretary@propertyfranchise.co.uk

                                                                (mailto:company.secretary@propertyfranchise.co.uk)
 Ben Dodds, Chief Financial Officer

 Canaccord Genuity Limited (Nominated Adviser and Joint Broker)   020 7523 8000

 Max Hartley

 Harry Rees

 Berenberg (Joint Broker)                                         020 7496 3000

 Harry Nicholas / Michael Burke / James Thompson

 Alma Strategic Communications

 Justine James                                                    020 3405 0209

 Kinvara Verdon                                                   propertyfranchise@almastrategic.com

                                                                (mailto:propertyfranchise@almastrategic.com)
 Emma Thompson

 

About The Property Franchise Group PLC:

 

The Property Franchise Group PLC (AIM: TPFG) is the UK's largest multi-brand
property franchisor, with a network of over 1,946 outlets delivering high
quality services to residential clients, combined with an established
Financial Services business.

 

The Company was founded in 1986 and has since strategically grown to a diverse
portfolio of 18 brands operating throughout the UK, comprising longstanding
high-street focused brands and two hybrid brands. The Property Franchise Group
is also a member of two leading mortgage networks through its mortgage
brokers, Brook Financial (MAB) and The Mortgage Genie (Primis).

 

TPFG's brands are: Belvoir, CJ Hole, Country Properties, Ellis & Co,
EweMove, Fine & Country, Hunters, Lovelle, Martin & Co, Clarke &
Partners, Mullucks, Newton Fallowell, Nicholas Humphreys, Northwood, Parkers,
The Guild of Property Professionals and Whitegates.

 

Headquartered in Bournemouth, the Company was listed on AIM on the London
Stock Exchange in 2013 and entered the AIM 100 in July 2024.

 

More information is available at www.propertyfranchise.co.uk
(http://www.propertyfranchise.co.uk/)

 

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