Belvoir has announced a 21% rise in revenue and a 40% increase in pre-tax profits. It is the 22nd consecutive year of uninterrupted profit growth for the business.
Its preliminary results for last year show revenue at £13.7m and profits at £5.5m, with a shareholder-pleasing dividend of 7.2p, up 9%.
The results also show that there were 26 franchisee assisted acquisitions of other businesses, and that the average fee paid by franchisees to head office rose from £26,333 to £28,333.
The number of offices was also up from 300, standing at 365.
Belvoir also acquired mortgage business MAB Glos, a network of 87 financial services advisers operating through 64 offices.
CEO Dorian Gonsalves said that Belvoir has achieved a threefold increase in pre-tax profits since 2014.
He said: “Belvoir is a strongly cash generative business with revenues underpinned by the recurring ‘annuity-style’ lettings income stream coupled with the diversification into complementary property-related services, which will enable the group to overcome changes and outperform in the sector over the coming year.”
Chairman and founder Mike Goddard said last year’s results were achieved despite a flat sales market, the ongoing threat of the tenant fee ban and Brexit uncertainties.
He also said that the company had taken steps to “significantly” mitigate the effects of the ban.
The report this morning notes: “Belvoir is well prepared for the tenant fee ban, which comes into force on June 1 and is likely to have a significant effect on the landscape of lettings agents.
“Furthermore, our lettings agents are unaffected by the introduction of compulsory client money protection on April 1 as this has been a requirement of our franchisees for many years, so we will benefit from all agents being required to operate on the same playing field.
“We predict that up to 20% of agents which heavily rely on tenant fees or do not hold client money in a separate account to their trading account will either choose to sell their portfolios or go out of business.
“Our franchisees see the opportunities that consolidation in the market present and many are already working with our acquisitions team to secure those businesses that become available.”
Comments (8)
Fair play, seem to have the *waitrose* type of image about them
Fair play to them. Is it me though. They have to do a hell of a lot of work to make (in city terms) not alot of money.
Bless You The dividend yield is showing over 6.5% which is highly respectable.Especially when they are still digesting the purchase of Northwoods
Compare that to Bricks and CWD who are showing a big fat 0 dividend with a share price which has cliff falled in the last 12 months showing investors a huge capital loss its pretty breezy
TPFG who are highly comparable showing a similar healthy yield .However you need to ask the question which was the better purchase Northwood for Belvoir or Ewemove for TPFG .The jury is well out on that one
With Ewemove largest acquistion at Sheffield which only rebranded to Ewemove12 months ago this has already quietly migrated to Whitegates within the group . In addition despite what the Head Shepherd has been saying there has been a continuing stream of failed franchises with a number already this year .Silence of the Lambs
Bless You,
Don’t forget that the profit being declared by the “top co” in a property franchise business does not include the profits made at the franchisee level. We have some cracking franchisees businesses with turnover in the high six and even seven figures, franchisees earning a really good living with kids in private school, lovely homes, big buy-to-let portfolios under their belt using the opportunities afforded through the franchise.
Hillofwad71,
Its well known that we were the underbidder on Northwood and if I could have purchased that business for the £12m Belvoir that ultimately paid I would have done so in a heartbeat, so fair play to them.
EweMove has been cash generative ever since we owned it, so unlike most “online/hybrid” agents its not a millstone around our necks. We have sucked the marrow out its bones (another sheep analogy?) by encouraging three of its highest performing franchisees across into traditional brand businesses and copying quite a bit of the digital marketing know-how through PPC optimised websites, lead-bait and live-chat. But the Ewemove carcass is a lot more than a flea ridden fleece. It’s the most instructed agent in Basingstoke and we are winning UK market share year-on-year. The on-line sector has not gone ballistic as predicted, but I would not want to operate a national property franchise business without having a hoof in this trough.
What price success? All very well bleating on about the successes which Basingstoke undoubtedly is but how has that helped the others you have meant to be shepherding No consolation to those which have incurred life changing Losses
Looking through Companies House and the accounts of many of the Ewemove franchisees, success seems to be at their expense .Some horrendous losses
This year alone Streatham ,Croydon Altrincham Salford Laindon Park have all vanished Stevenage franchise has packed up to start his own business although still showing live on your platform Chichester too showing live but now Martins ?
Around 18 have gone since last May when the Head Shepherd announced the figure was reducing
Why dont you just announce the changes?
Why has Bob Brown moved quietly the Sheffield and Gleadless franchise after only 1 year to Whitegates after acquiring Castle Estates? No announcement nor did your online chat know
Bob Brown is many things, bon viveur, international traveller, football fan and successful wealth manager, but quiet he is not. Bob was delighted to land the Castle Estate acquisition and after a bit of reflection he decided that the revamped Whitegates brand would be a perfect vehicle for him to build a serious scale letting and property management business. He has made further acquisitions and is now managing over 500 units. Not bad for a cold start investment in EweMove only a few years ago. As a top co we are brand agnostic and we encourage talented franchisees of all persuasions to use whichever brand/model is best suited to their market/personal requirements.
Well that really doesn’t give the biggest vote of confidence for Ewemove ! Their largest acquistion done a runner
Furthermore your outsourced call centre was unaware that the franchisee had migrated !Your Sheffiled branch appeared live until this week as scomeone has woken up
His departure is now being described as a temporary broken link!
I am sorry that is all very confusing
No notice that Whitegates have taken it over and/’or why not try our adjoining franchise instead
/https://www.ewemove.com/estate-agents/sheffield/buyers
You have to take your hat off to Belvoir.In a challenging market serving up a very respectable set of results . Founder still very much on the premises despite being of retirement age.
Franchise network strong and stable .
others where franchisees are quietly disappearing off the map leaving individuals with life changing debts whilst founders slope off with a multi million payout.Thank you very much and Goodnight Irene