The Property Franchise Group (TPFG) has just released its full year results for the 12 months ended 31 December 2023.
Key points of the announcement include:
+ A year of record performance, with improved quality of revenue and execution of strategic roadmap whilst continuing to navigate a challenging macroeconomic backdrop.
+ Recurring revenues contributed 56% of total revenue underpinned by double digit growth in lettings revenue with lettings MSF up to 60% of total MSF.
+ Sales outperformed a 19% reduction in UK sales completions year-on-year with the year-end sales agreed pipeline increasing 4% to £23.1m (2022: £22.2m).
+ The lettings market continues to grow at pace, with anticipated growth in sales revenue in 2024 amidst an improving sales market.
+ Transformational merger with Belvoir Group plc completed on 7 March 2024, creating one of the UK’s largest multi-brand lettings and estate agency groups, with an established and growing financial services business. The Combined Group will benefit from increased scale and geographic reach, operating more than 910 outlets in franchised territories, managing in excess of 153,000 tenanted residential properties across the UK, selling more than 28,000 properties per year and advising on the completion of over 21,000 mortgages through its network of approximately 310 advisers.
Gareth Samples, CEO of The Property Franchise Group, said: “FY23 represents yet another year of record performance in which we have improved the quality of our revenue and adeptly executed our strategic roadmap, whilst continuing to navigate a challenging macroeconomic backdrop. This is testament to the quality and hard work of our team, with the progress made in the year leaving us with a solid foundation on which to grow further, bolstered by increasing revenue visibility for 2024 across a broader base.
“We are delighted to have completed the post-period transformational merger with Belvoir, marking a significant milestone in our journey to become one of the leading players in the UK property market. We see a huge opportunity for the Group, with increased scale, breadth of offering and diversity of brands, as well as enhanced geographic reach, whilst also providing us with a clear opportunity to accelerate growth in our Financial Services division.”
A video overview of the results featuring CEO Gareth Samples and CFO David Raggett is available to view here.
TPFG’s statement in full:
THE PROPERTY FRANCHISE GROUP PLC
(the “Company” or the “Group”)
Final Results
Outstanding financial performance in a challenging market, with the post-period Belvoir merger creating the UK’s leading property franchise business
The Property Franchise Group PLC, the UK’s largest multi-brand property franchisor, is pleased to announce its Final Results for the year ended 31 December 2023 (“FY23”).
Financial Highlights
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Group revenue increased to £27.3m (2022: £27.2m) |
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Management Service Fees (“MSF”) increased to £16.1m (2022: £15.9m) |
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Adjusted EBITDA increased to £12.1m (2022: £11.8m) |
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Adjusted operating margin of 42% (2022: 41%) |
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Profit before tax increased to £9.0m (2022: £8.8m). |
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Adjusted diluted earnings per share was 28.4p (2022: 28.4p) |
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Net cash of £5.1m at 31 December 2023 (2022: £1.7m) |
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Dividend paid and declared for FY23 of 14p (2022: 13.0p) |
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TPFG has delivered sustained growth over the last 11 years in profit before tax (CAGR +23.5%) and dividends (+23.3%) |
Operational Highlights
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Recurring revenues contributed 56% of total revenue underpinned by double digit growth in lettings revenue with lettings MSF up to 60% of total MSF (2022: 55%) |
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Lettings MSF increased 11% to £9.9m, a new record for the Group (2022: £8.9m) |
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Sales outperformed a 19% reduction in UK sales completions year on year with the year-end sales agreed pipeline increasing 4% to £23.1m (2022: £22.2m) |
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Managed portfolio up 3% to 78,000 rental properties (2022: 76,000) |
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22 acquisitions at the franchisee level (2022: 19), added 1,879 managed properties (2022: 1,890) |
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EweMove sold 31 new territories (2022: 44), with total territories under contract 189 (2022: 189) |
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Completed the installation of new operating systems and platforms across the Group to enable more digital interaction with our customer database and to improve efficiency |
Belvoir merger
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Transformational merger with Belvoir Group plc completed on 7 March 2024, creating one of the UK’s largest multi-brand lettings and estate agency groups, with an established and growing financial services business |
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The Combined Group will benefit from increased scale and geographic reach, operating more than 910 outlets in franchised territories, managing in excess of 153,000 tenanted residential properties across the UK, selling more than 28,000 properties per year and advising on the completion of over 21,000 mortgages through its network of approximately 310 advisers |
Q1 Trading and Outlook
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Q1 has been ahead of management’s expectations in terms of both revenue and profitability |
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Lettings market continues to grow at pace, with anticipated growth in sales revenue in 2024 amidst an improving sales market |
Gareth Samples, Chief Executive Officer of The Property Franchise Group, said: “FY23 represents yet another year of record performance in which we have improved the quality of our revenue and adeptly executed our strategic roadmap, whilst continuing to navigate a challenging macroeconomic backdrop. This is testament to the quality and hard work of our team, with the progress made in the year leaving us with a solid foundation on which to grow further, bolstered by increasing revenue visibility for 2024 across a broader base.
“We are delighted to have completed the post-period transformational merger with Belvoir, marking a significant milestone in our journey to become one of the leading players in the UK property market. We see a huge opportunity for the Group, with increased scale, breadth of offering and diversity of brands, as well as enhanced geographic reach, whilst also providing us with a clear opportunity to accelerate growth in our Financial Services division.”
Analyst presentation
An analyst presentation will be held at 10.00am today, and those wishing to join the presentation should contact propertyfranchise@almastrategic.com for joining details.
Investor presentation and Overview Video
The Company is hosting a live private investor presentation on Wednesday 24 April 2024 at 12.15pm on the Investor Meet Company platform. All existing and potential private investors interested in attending are asked to register using the following link: https://www.investormeetcompany.com/property-franchise-group-plc-the/register-investor
No mention of a decent dividend for shareholders?
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Biggest ever 14p full year dividend as stated.
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One thing I’ve learnt from them is adwords doesn’t work. They must spend a fortune on it , and still only sell x landlord property..
Makes me wonder how growing?
Are there new landlords entering the market?
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