More shares are being issued in Belvoir Lettings after one of its brands hit target early after being purchased.

Belvoir announced at the time of its preliminary results last month that Newton Fallowell, the business Belvoir acquired in July 2015, had already exceeded its 2017 EBITDA (earnings after costs) target of £1m.

As a result, the earn-out due to the Newton Fallowell vendors in 2017 of £933,380 would now be settled in shares this year.

Accordingly, Belvoir has issued and allotted 818,754 new ordinary shares of 1p each, based on the average mid-market share price of £1.14 for the 28 days prior to May 5 in relation to the settlement of the 2017 deferred consideration. These shares will be subject to a 12-month lock-in.

Application has been made for the shares to be admitted to trading on the AIM Market of the London Stock Exchange next Monday (May 16).

Mike Goddard, CEO of Belvoir Lettings, said: “Newton Fallowell was the first acquisition in our multi-brand franchising strategy which has proved to be very successful with strong trading from the Newton Fallowell network exceeding expectations.

“The Newton Fallowell management team has demonstrated confidence in the wider Belvoir Group by opting to take their 2017 earn-out in Belvoir shares which they will be required to hold for at least 12 months.”