A City analyst has downgraded Belvoir Lettings, saying that it had “disappointing” full year results.

Sue Munden, of Cantor, downgraded the company from buy to hold, and dropped the target price from 200p to 127p, as she scaled down forecasts for the company.

Shares fell on the downgrade by 1.5% to 125p, compared with a 52-week high of 195p. The share price has been falling since February.

Munden said: “The full-year 2013 results disappointment and the significant downward revisions we are making to expected profits as a consequence should be considered in light of the still robust prospects for growth.

“The group is operating in a fundamentally sound macro environment in which Belvoir, with its strong franchise network, reputable brand and healthy financial resources should be able to flourish.

“The ability of the new management to execute with acquisitions and signing up new franchisees adds a degree of risk although we believe our forecasts reflect these.”

Belvoir announced its 2013 results at the end of March.

While profits were up by 16% on the year before, this was lower than forecasts. The firm said this was partly due to the investment in its acquisitions strategy plus the purchase of its network of corporate offices.

Revenues of £5.8m were also up, by 44%, with pre-tax profits of £1.6m.

The firm has a new chief executive in Carl Chadwick, who took over from Dorian Gonsalves. He stepped aside to become director of franchising.

Belvoir has 151 franchisees and a total of 160 outlets, with six corporately owned offices.

Belvoir has a market capitalisation of £30m and is listed on AIM.