The Property Franchise Group (TPFG) has reported higher first-half revenue despite what it described as a subdued property sales market.
Group revenue increased 7% to £43.3m in the six months to 30 June 2026, up from £40.3m a year earlier.
Adjusted pre-tax profit rose 7% to £15.5m. Adjusted EBITDA increased 3% to £16.2m.
The AIM-listed group, which owns brands including Belvoir and Martin & Co, increased its interim dividend by 10% to 7.7p per share.
TPFG said it expects full-year trading to remain in line with market expectations.
Lettings portfolio holds firm
Franchising revenue increased 8% to £24m, while financial services revenue rose 10% to £13m. Licensing revenue remained unchanged at £6.3m.
Recurring income accounted for 46% of group revenue, compared with 47% a year earlier.
The group’s managed lettings portfolio stood at around 149,000 properties. That compares with approximately 150,000 in H1 2025.
Its Privilege programme generated £1.2m during its first full half-year. The Rent Guarantee element now covers more than 72,000 managed properties.
Meanwhile, TPFG’s sales agreed pipeline increased by around 2.5% to £44.6m. Its financial services division completed 13,400 mortgages, up from 12,800.
Chief executive Gareth Samples said: “This has been another record first half for the Group, delivered in a subdued sales market, demonstrating the resilience of our diversified franchise model. We maintained our managed portfolio at 149,000 properties whilst supporting our network through the implementation of the Renters’ Rights Act, and pleasingly, Privilege delivered £1.2m of revenue in its first full half year.”
Financial Highlights
· Group revenue increased 7% to £43.3m (H1 2025: £40.3m)
o On a like for like basis, Group revenue increased by 4%
o Franchising revenue increased 8% to £24.0m (H1 2025: £22.2m)
o Financial services revenue increased 10% to £13.0m (H1 2025: £11.8m)
o Licensing revenue remained consistent at £6.3m (H1 2025: £6.3m)
· 46% recurring revenue (H1 2025: 47%)
· Adjusted EBITDA increased by 3% to £16.2m (H1 2025: £15.7m)
· Adjusted profit before tax increased 7% to £15.5m (H1 2025: £14.5m)
· Adjusted basic earnings per share3 increased 8% to 19.8p (H1 2025: 18.3p)
· Net debt of £8.1m (H1 2025: £10.9m)
· Cash generated from operations of £13.4m (H1 2025: £13.2m). Cash conversion was 83% (H1 2025: 84%)
· Increased interim dividend by 10% to 7.7p (H1 2025: 7.0p)
AI products rolled out
TPFG also launched its first commercial AI-enabled products during the period.
The technology aims to improve franchisee productivity, inbound lead handling and financial services lead progression. So far, 14 franchisees have adopted the products.
The group completed its acquisition of Smart Advice Financial Solutions (SAFS) in January. It said the business has since integrated and is performing in line with expectations.
TPFG also invested in Meridian, the parent company of Legal & General Surveying Services. The move extends the group’s interests into residential surveying.
Net debt fell to £8.1m from £10.9m a year earlier. TPFG generated £13.4m in cash from operations during the six-month period.
Samples added: “Looking ahead, whilst the external environment remains uncertain, our diversified income streams and growing recurring revenue base give us confidence in delivering full year trading in line with market expectations.”
