REG - Property FranchiseGp - Half Year Trading Update and Notice of Results

Property FranchiseAnnouncement

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RNS Number : 7287T  Property Franchise Group PLC (The)  04 August 2025

4 August 2025

 

THE PROPERTY FRANCHISE GROUP PLC

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

 

Half Year Trading Update and Notice of Results

 

Delivery of significant organic growth, leveraging the scale of the Group

 

The Property Franchise Group PLC, the UK's largest multi-brand property
franchisor, announces its trading update for the six months ended 30 June 2025
(the "Period"), ahead of publishing its interim results on Wednesday 10
September 2025.

 

The Group has delivered strong organic growth across its three divisions in
the first half of the year, with full year trading anticipated to be in line
with market expectations.

 

Highlights

 

 ·             Group revenue increased 50% to £40.3m (H1 2024: £26.9m)
               §                                        8% increase on a like for like basis
 ·             Franchising revenue increased by 22% to £21.8m (H1 2024: £17.9m)
               §                                        Lettings MSF like for like increased 5% to £5.4m (H1 2024: £5.2m)
               §                                        Sales MSF like for like increased 18% to £3.7m (H1 2024: £3.2m)
 ·             Financial Services revenue increased 54% to £12.2m (H1 2024: £7.9m)
 ·             Licensing revenue increased by 514% to £6.3m (H1 2024: £1.0m)
 ·             Cash generation of £15.2m in the Period with net debt of £10.8m, following
               deferred consideration for GPEA, advance tax payments and H1 working capital
               movements (FY24: £9.1m)

 

Franchising

 

Lettings MSF in H1 grew 24% to £10.4m (H1 2024: £8.4m) as a result of 5%
like for like growth and an additional two months of Belvoir Group revenues vs
H1 2024. This like for like growth reflects continued positive performance in
lettings across the Group and the positive steps being taken to minimise any
impact from the upcoming Renters Rights Bill. The launch of the Group's
Privilege programme, a set of lettings focused offerings designed to leverage
the new scale of the Group, is expected to provide further opportunity for
growth in H2 and into 2026.

 

H1 saw a strong upturn in sales activity, particularly in Q1 as buyers looked
to avoid the change in stamp duty in March 2025. As a result, Sales MSF in H1
grew 28% to £5.0m (H1 2024: £3.9m) and 18% on a like for like basis.

 

Financial Services

 

The upturn in sales activity, combined with further decreases to the Bank of
England base rate, led to a strong H1 for the Financial Services division,
with revenue increasing by 54% to £12.2m (H1 2024: £7.9m). On a proforma(1)
basis, revenue increased by 14%, demonstrating strong underlying organic
growth. A total of 13,000 mortgages (H1 2024: 7,700) were written during the
Period.

 

Licensing

 

During H1, the Fine & Country business grew to 304 licensees (Dec 2024:
294), contributing to revenue growth on a proforma(1) basis for the division
of 5% to £6.3m (H1 2024: £6.0m).

 

During the Period, despite the GPEA business performing in line with our
expectations, we amended certain customary terms under the SPA which resulted
in a reduction in the deferred consideration payable, down to a net £3.75m.
The £1.25m difference is anticipated to be recognised as an exceptional gain
in the reported profit before tax within the 2025 accounts.

 

Current Trading and Outlook

 

Looking ahead to the remainder of 2025, the focus for H2 will be on continuing
to deliver the additional income opportunities resulting from the scale of the
enlarged Group.

 

In anticipation of the upcoming Renters Rights Bill, the rollout of the
Privilege programme, to both protect income and provide growth opportunities
in H2 and beyond, is well underway and provides an attractive option to
landlords considering converting to the agent managed property model.

 

The combination of further anticipated interest rate cuts and a strong sales
pipeline of £43.5m (Dec 2024: £33.4m), balanced by a softening on new
instructions provides confidence in delivering planned income in H2 in Sales
MSF and for the Financial Services division.

 

Progress continues to be made on implementing AI opportunities across the
Group to deliver revenue growth and profitability improvement opportunities
across our networks with the first launch planned for H2.

 

The strength of the Group's franchise model and diversified revenue streams
puts TPFG in a strong position and continues to shelter it from market
cyclicality. As such, the Group expects further growth across the divisions
for the remainder of FY25 and expects to deliver trading in line with
expectations for the full year.

 

Chief Executive Officer, Gareth Samples, commented:

 

"I am delighted that the Group has continued to deliver a strong performance
across all three divisions in the first half. With the significant growth and
step change achieved in FY24, post acquisitions, we continue to deliver the
anticipated synergies whilst leveraging our enhanced scale and capabilities to
deliver greater value to our franchisees and members. Our resilient franchise
business model, diversified revenue streams and continued strong cash
generation provide the Board with confidence for the year ahead."

 

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

 

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

 Singer Capital Markets (Joint Broker)                            020 7496 3000

 Rick Thompson / James Fischer
 Alma Strategic Communications                                    020 3405 0209

 Justine James / Joe Pederzolli / Kinvara Verdon                  propertyfranchise@almastrategic.com
                                                                  (mailto:propertyfranchise@almastrategic.com)

 

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, Mr and Mrs
Clarke, 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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