Praise for Belvoir’s franchise model from City analyst who says shares can soar

Belvoir’s business model has been praised by a broker, finnCap, which initiated coverage of the firm yesterday.

In a note to investors, it said that while changes such as the fees ban were “squeezing” traditional and smaller players, Belvoir’s franchise model allowed it to harness entrepreneurial skills without being directly exposed to the costs and capital commitments of its franchisees.

finnCap said: “Belvoir’s growth strategy is underpinned by a highly professional network of franchisees with sound business ethics.

“This sounds like a bare minimum, but it is not necessarily true for the wider market, which is characterized by small, local agents.

“Tightening regulation is putting professional operators such as Belvoir at a competitive advantage.”

finnCap set a target for Belvoir’s share prices at 190p – well above the current price.

Yesterday, the shares closed 1.4% up at 107.5p.

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6 Comments

  1. Hillofwad71

    Hats off to Belvoir .Their franchise network has remained remarkably robust despite all the challenges . The management  must take  a keen interest in their franchisees financial  health unlike it seems than some of their  listed competitors where the casualty rate is  far too high and unacceptable

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  2. Bless You

    How do they stop franchises running off with deposits? Have they got a system or is it the quality of the franchisee?

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    1. GeorgeHammond78

      They didn’t have in my part of the world – belvoir bloke did a runner with c£120,000 of client funds. Eventually got caught and did 22 months. Did his franchisor do anything to anything to help those robbed under their name – Nope!

      Have they ever tried to flog a franchise here again? Nope to that one too.

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  3. Snyper

    You have to give it to Belvoir – they know how to run a business and the franchises are successful. Wonder what their secret is compared to the likes of Martin & Co? Better screening of franchisors?

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    1. Mothers Ruin

      Maybe their franchisees like them! That helps with motivation. A lot.

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  4. propertyguru11

    I’m fed up with the ‘analysts’ recommendation stories – they are the same guys who say Rightmove can keep raising their fees, while all agencies struggle to pay the 10% increase every now and then.

     

    They are just not out there on the streets

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