Spicerhaart is reigniting its acquisition strategy with a multi-million pound investment in its estate agency and lettings businesses.
The firm’s founder and chairman Paul Smith has set out plans to strategically acquire estate agencies with robust lettings portfolios over the next 18 months.
“Over the years, our focus on acquiring agencies with strong lettings portfolios has kept us competitive and ensured a steady revenue stream,” Mr Smith.
“We’ve invested heavily in our lettings and property management business over the past couple of years and will also be expanding our lettings hub-based partnership model into 32 new locations, complementing our growth in our estate agency partnerships.”
In its recently filed accounts for the year ending December 2023, Spicerhaart reported a 9% increase in residential lettings turnover, driven by a 2% growth in properties under management and stronger average rental prices.
The land and new homes division also saw a 2% increase in turnover, reflecting heightened activity that resulted in a 42% higher exit pipeline compared to the previous year.
However, overall group turnover declined, mirroring the national trend in estate agency, with decreases in estate agency sales, surveying and financial services revenue.
The group reported a pre-tax loss of £3.4m but still delivered a turnover of £126m – even though there were 19% fewer transactions across the market (according to HMRC) and there was disruption caused by the effect of the mini-budget, with associated high interest rates.
Despite this, Spicerhaart’s net assets stand at £21.9m, and the group remains debt-free with cash reserves of £19.9m, slightly higher than the previous year. These reserves are earmarked to fund continued growth in key strategic areas.
“We’re looking to acquire businesses that share our vision and values and possess a high-performance culture,” Smith continued. “We also have ambitious plans to develop our training and career opportunities and further invest in technology, all of which are expected to drive significant improvements in operational performance.”
“With a new government in place, lower interest rates, and controlled inflation, Spicerhaart expects an upturn across all areas of our business. We’re committed to building a more competitive and resilient enterprise, well-positioned for medium-term growth,” he added.
Thought he stood down?.
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who actually cares
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Sadly I’m old enough to remember productivity numbers released by the Soviet Union & this reads like old time propaganda
We are going to invade other businesses and export our model of outdated practice and losses
The real headline – despite record ONS figures of 9% rental grown we hemorrhaged 3.4 million quid .. 2 % growth of unprofitable transactions… this is why no one will buy it off him
Betting the balance sheet is full of corona funding too
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Lots of positive news coming from the spicerhaart group.
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it looks like the 2 and 2 strategy didn’t really work so far to achieve the 50K managedproperties, did it?? so better to acquire antoher copmpany and its book…fell sorry for the new clients.
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If you don’t care, why comment? Love them or loath them, you cant argue with the results. Net assets of £21.9m, debt-free and cash reserves of £19.9m, and lets not underestimate the lettings performance. 9% increase in turnover, 2% growth in managed stock. Hats off to Sat Basi!! You can weather the storm of uncertainty currently raging in the ‘Post Election, Pre Renters Reform’ lull with a solid base like that. Just hope they dont over extend with the acquisitions and have a robust plan for acquisition integrations!
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Did you forget to read the part about £3.4m LOSS?!
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We do not believe in profit only room Lettings
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Again – who cares
I run my own business
I could not care less what other developers do
I neither love nor loath SH
I would never sell through a corpotate comapny personally as they have low paid children selling for them
I have no respect for a company that sacked loads of staff start at the start of Covid by e mail as I persoannly do not think that is the way to treat human beings
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whoops typo
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