Belvoir Group PLC has published its financial results for the first half of 2023.

The company has recorded positive first half results across the board.

In the six months that ended 30 June, the property franchise and financial services saw revenue increase by 3% from a year earlier, despite ‘more challenging market conditions’ in the first half of 2023.

Belvoir also said the group is ‘outperforming the market’ across all three of its revenue streams; lettings, sales and financial services.

Financial Highlights

+ 3% increase in revenue to £15.9m (H1 2022: £15.4m)

+ 4% increase in Management Service Fees (MSF), the main revenue stream from franchisees, to £5.5m (H1 2022: £5.3m) with lettings up 8% and sales down 9%

+ 11% increase in Financial Services revenue to £8.6m (H1 2022: £7.7m)

+ Gross profit split of 58% lettings: 15% sales: 21% financial services: 6% other (H1 2022: 60%, 17%, 19%, 4%) continuing to demonstrate a strong contribution from recurring lettings income

+ Administrative costs down 7% to £5.0m (H1 2022: £5.4m) mainly resulting from the net impact of changes in the number of corporate-owned offices and acquisitions

+ 10% increase in profit before tax to £4.4m (H1 2022: £4.0m)

+ Basic earnings per share up 3% to 9.0p (2022: 8.7p)

+ 25% increase in interim dividend to 5.0p per share (H1 2022: 4.0p) payable on 27 October 2023

+ H1 results comfortably in line with management’s expectations

Operational Highlights

+ A strong performance achieved from Belvoir’s successful franchise model, despite continuing challenging market conditions

+ Acquisition of BMA Bristol Ltd, a financial services business comprising 21 self-employed advisers and a lead-generating website, for £1m net cash on 6 June 2023, funded from existing cash reserves

+ Successful franchising out of Nicholas Humphreys Derby on 1 March 2023 to the branch manager

+ 13 (H1 2022: 9) franchisee assisted acquisitions completed adding £3.5m (H1 2022: £2.2m) of acquired franchisee turnover

+ Portfolio of managed properties increased 2% to 75,000 (H1 2022: 73,300)

Belvoir’s CEO, Dorian Goncalves, said: “The outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions.

“With 58% of their revenue derived from a strong recurring lettings market, our property franchisees have been able to offset the impact of the reduction in UK housing transactions. Meanwhile our financial advisers are mitigating the lower level of new purchase mortgages by servicing demand for remortgages and other related products from their substantial client banks.

“Our resilient business model and our proven growth strategy underpin the ongoing success of the Group’s performance and consequently, the Board confirms that the Group is trading comfortably in line with management’s expectations for the year ending 31 December 2023.”