Belvoir Group PLC yesterday issued a trading update ahead of publishing its Half Year results on 5 September 2022.

Group revenue during the six months to 30 June 2022 increased by 11% on 2021, despite 2021 being an exceptionally strong year for the property sector.

Revenue from the property division was up 3% and Management Service Fees (“MSF”), the core underlying revenue from franchisees, was up 1% on 2021, with growth from lettings MSF mitigating the reduction in sales MSF as the residential property sales market returns, as expected, to more normal transaction levels.

Revenue from the financial service division was up 19% of which 12% resulted from the July 2021 acquisition of Nottingham Mortgage Services and the May 2022 acquisition of Time Mortgages Experts. The Group’s financial services network now comprises 301 (FY2021: 243) mortgage advisers.

The Group continued to achieve a high rate of cash conversion and maintains a strong balance sheet with cash balances of £5.2m (H1 2021: £5.1m) and bank loans of £8.3m (H1 2021: 9.1m) at the end of June 2022.

Net debt is £3.1m (H1 2021: £4.0m), up £1.8m since the end of 2021, after having acquired Mr and Mrs Clarke Limited and The Time Group Limited for initial cash consideration of £3.9m.

Consequently, the Board confirmed that the Group is performing well and is trading in line with management’s expectations for the year ending December 2022.

Dorian Gonsalves, CEO of Belvoir Group, commented:

“Given the stamp duty holiday and the post-lockdown pent-up demand last year, 2021 was always going to be a hard act to follow for the property sector.

“However, the diversity of the Group’s income streams and the resilience of its franchise business model have enabled Belvoir to achieve underlying growth with increased revenue from lettings and financial services mitigating the shortfall from property sales.

“Meanwhile, the Board’s ongoing acquisition growth strategy has resulted in further expansion being achieved in both its property and financial services divisions.”