The Property Franchise Group PLC has this morning announced the acquisition of 80% of the issued share capital of The Mortgage Genie Limited (TMG).

The initial consideration is £400,000 with an estimated additional payment of c.£90,000 once the post completion process has been satisfactorily finalised.

TMG is a mortgage broker operating as an Authorised Representative of the PRMIS mortgage network which is owned by LSL Property Services Limited.

The acquisition is in line with TPFG’s strategy to grow the number of financial services advisers serving its network and its strategic partnership announced with LSL on 27 April 2021.

TPFG says that the acquisition demonstrates the group’s commitment to developing its financial services income stream and providing the capacity required to serve its franchisees with mortgage and protection services.

TMG offers digitally enabled and tailored mortgage and protection services to a growing client base including the franchise network of TPFG’s hybrid brand, EweMove.

Founded in 2016 by Matt Stevens, who will continue to lead the business, TMG is fully invested in delivering on the long-term vision to grow its advisor capacity, develop its call centre capabilities and significantly grow its protection income. The business currently employs 17 people including 10 advisers and, with the support of TPFG, this growth will be supported and accelerated.

In the year to 31 July 2020, TMG generated £950,000 of turnover and £71,000 of profit before tax and, with the improvement in the market since then, management are confident of exceeding that performance in the financial year ended 31 July 2021.

Gareth Samples, group chief executive officer of TPFG, said: “The Acquisition of TMG demonstrates our commitment to strategically grow the Group’s financial services capability which will ultimately provide a meaningful contribution to our franchisees’ and Group’s financial performance.

“We are delighted to be welcoming Matt and his team to the Group at such an exciting time in its growth journey and we believe we have the resources in place to enable TMG to increase its market share, whilst simultaneously enabling the Group to develop its financial services income stream.”