Lettings franchise business Belvoir is to launch an estate agency service right across its entire network of 157 offices.
A year-long pilot in 14 offices has just finished successfully, producing £0.4m in the first six months of this year, and the firm will now be rolling it out at the rate of nine branches per quarter.
Chief executive Mike Goddard famously went on record in 2012 saying he would “never” go into sales.
But yesterday, he told Eye that he was glad he had changed his mind.
“We are moving with the tide, not against it. However, my view is that we will always be regarded as primarily a specialist in lettings, our core business,” he said.
Belvoir’s interim results for the first six months of this year reported a 32% increase in revenue to £3.3m, compared with £2.5m for the same period last year. Profits before tax were up 6% to £0.8m.
Despite the strong results, there have been some turbulent times at Belvoir.
Goddard confirmed to Eye that it had been “an eventful six months”.
Goddard had stepped down as chief executive in 2010, succeeded by the popular Dorian Gonsalves.
But in a surprise reshuffle, finance director Carl Chadwick was made chief executive in March. Two months later, it was announced that he had quit.
Yesterday, it emerged that Chadwick was given a £120,000 payoff. Goddard, who returned to the role as chief executive, would only say that things “didn’t work out”.
He said that on Chadwick’s appointment, Gonsalves had gone part-time, but after his departure he returned full-time to his post as director of commercial and franchising.
Louise George has also been appointed finance director.
Yesterday, it was revealed that six new franchisees had been recruited to take over existing businesses, while one new territory had been created. Four more franchises are in the final stages of joining.
Of the 157 current offices, nine are owned and run not by franchisees but by Belvoir itself.
Goddard and Gonsalves made no secret of their appetite for further acquisitions.
Goddard said that “there are some little gems out there – it is a matter of getting out and finding them”.
He also said that he does not see the new wave of agents such as easyProperty and Purplebricks as any threat: “The traditional model is powerful because it is what the public want.
“I do not believe that the deep levels of service that the public want can be delivered by these models.
“I strongly believe that this is a service industry, and if you deliver a good service, that leads to referrals, and that means you can charge a sensible fee.”
Comments (2)
Be good to hear from some of the franchise owners, these guys are taking about £20k a year on average from each of them and appear to be blowing lots of it on sweets and Tizer – £120k pay offs would make the BBC wince a bit…..seems like a lot of money to have people residing over what is no more than the revenue from 4 or 5 decent EA offices coming from franchise fees with the franchise holders making (and keeping) most of the money? – the idea of a franchise is the brand and marketing, bit of IT and access to training isn't it? what do these people do for their licence fee payers? – Belvoir people, love to hear your views, when ever ive come across any of you you're always pretty smart people, cant imagine you need this cost on big jobs? – Jonnie
“We are moving with the tide, not against it. However, my view is that we will always be regarded as primarily a specialist in lettings, our core business,” Which is why it will fail. Who seriously goes into business with that attitude, its not really what we do, but we will do it anyway….own it or don't bother.