Belvoir Group PLC strengthens market position with acquisition plans

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 is doing

In April, Belvoir announced it is buying the owner of the Nicholas Humphreys estate agent and letting chain for £4mln.

The earnings enhancing deal brings under its ownership 18 franchised and three corporate-owned offices and strengthens Belvoir’s position as one of the UK’s largest property franchise groups.

The newly acquired business specialises in student lettings, giving an overall revenue split of 87% lettings and 13% sales. 

Its portfolio of 6,510 managed units provides a strong underlying recurring revenue stream.

In January, Belvoir said its profits this year will exceed expectations after house sales and mortgage demand rebounded strongly after the first lockdown.

Revenues for the year to end-December 2020 rose by 12% to £21.6mln, which was higher than pre-COVID-19 forecasts, helped by the performance of the Lovelle network acquired in January.

What the boss says: Dorian Gonsalves, chief executive

“With its bias towards lettings, the Nicholas Humphreys business is underpinned by a strong recurring revenue stream, whilst offering the opportunity to roll out Belvoir’s existing expertise in sales and financial services across the network.”

“The acquisition of Nicholas Humphreys demonstrates again that Belvoir is delivering on its strategic objective of investing in successful franchise businesses that are aligned with our multi-brand franchise model, where there is scope for further growth as part of the group.”

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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