The Property Franchise Group PLC, the UK’s largest property franchisor, has published a trading update ahead of publishing its interim results on Tuesday 13 September 2022.
The Group has achieved strong growth in the first half of the year with revenue significantly increasing vs H1 2021, despite 2021 having been a very strong year for the residential housing market.
Group revenue increased 18% to £13.1m (H1 2021: £11.1m)
Management Service Fees (“royalties” or “MSF”) increased 1% to £7.4m (H1 2021: £7.3m)
Sales agreed pipeline increased 15% to £33.8m (H1 2021: £29.5m)
Managing 74,000 rental properties (H1 2021: 73,000)
EweMove sold 19 new territories (H1 2021: 37)
Net debt of £2.6m (31 Dec 2021: £5.0m), following another period of strong cash generation
The growth in Group revenue was driven primarily by the acquisitions of Hunters and Mortgage Genie in FY21, with revenue growth from the existing businesses contributing £0.2m.
Management Service Fees increased 1% with the growth in lettings MSF of 12% offsetting the reduction in sales MSF as the residential sales market normalises. Sustained demand for lettings properties and rental inflation means lettings MSF continues to be a highly resilient revenue stream for the Group, contributing 55% of total MSF in the period.
Chief Executive Officer, Gareth Samples, commented:
“We are very pleased with the numbers announced today, particularly given the increasingly uncertain macro backdrop.
“Our performance demonstrates the many advantages of operating a focused franchise model, which has a multitude of income streams, franchise brands and ways of meeting consumers’ requirements.
“Our team works tirelessly to help our franchisees navigate challenges and explore growth opportunities.
“As such, the Board are confident that trading remains in line with market expectations for the full year.”