Belvoir Group PLC sees quick recovery in housing market

What Belvoir does

() is the UK’s largest property lettings franchise.

Founded in 1995, the firm currently has over 300 offices managing around 69,000 properties.

The company also operates a financial services arm which provides its customers with mortgages and other property-related financial services products.

How it’s doing

Despite the disruption caused by COVID-19, Belvoir saw revenue in the first half of 2020 rise by 8% to £9.77mln from £9.05mln the year before, and profit before tax jump 17% to £3.16mln from £2.70mln.

The group continued to achieve revenue growth across the three markets in which it operates with lettings up 8% year-on-year, property sales up 14% and financial services up 7%.

The group now has a portfolio of 69,000 managed properties, up from 64,650 at the end of June 2019, with eight franchise owners having completed on an assisted acquisition adding £1.47mln a year of franchisee network revenue in the year to date.

The lettings to sales revenue ratio from Belvoir’s estate and lettings offices remains unchanged at 80%/20%.

In October, Belvoir completed the 100th transaction under its Assisted Acquisitions programme, a core part of the group’s growth strategy.

What the boss says: Dorian Gonsalves, chief executive

“The Assisted Acquisitions programme, now in its seventh year, has gone from strength to strength. Since 2014 we have provided both commercial and financial support in relation to 100 deals with some of our ambitious franchisees having undertaken more than one acquisition to grow their business.

“The strategy is a win-win for both the franchisee and the franchisor, having been a significant contributing factor in the 80% increase in average revenue of our franchisees up from £150,000 in 2013 to £270,000 in 2019.”

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Inflexion points

• Profits and revenues to grow for 23rd consecutive year
• Housing market reopened earlier than expected
• Swift recovery in lettings market