In a trading update for the five months to 31 May 2021, The Property Franchise Group described the period as ‘strong’ and in line with the management’s expectations.
Revenue was significantly higher than for the same period in 2020, which was impacted by Covid, as well as 2019. The results, released yesterday ahead of TPFG’s AGM, have also benefitted from the acquisition of Hunters, which completed on 19 March 2021.
Group revenue in the five months to 31 May 2021, increased by 90% on 2020 and 85% on 2019. Like for like revenues (excluding those contributed from the acquisition of Hunters) for the period increased 29% on 2020 and 26% on 2019.
Group Management Service Fees (MSF) for the period increased 54% on 2020 and 39% on 2019.
Like for like MSF (excluding those contributed from the acquisition of Hunters) for the period increased by 29% on 2020 and 16% on 2019.
TPFG said the sales market continues to be buoyant with growth in the number of house sales for the period compared to 2020 ranging from 89% in the TPFG high street-led offices to 126% in EweMove. growth over 2019 was between 36% and 97% respectively.
The average sales fee charged has increased by over 10% in the last year, in-line with growth in UK house prices.
EweMove
EweMove, the group’s hybrid estate agency, has clearly built on its brand positioning, with the record recruitment of 30 new franchisees in the period. This is almost as many as it has ever recruited in a year and puts the Group well on track to achieve one of its core strategic aims: to double the size of EweMove territories to 230 by the end of 2022.
Hunters
TPFG says that the integration of Hunters is ‘progressing very well’ with particular focus on finance, training, compliance, IT and key suppliers in the first three months.
Following the announcement of the strategic partnership with LSL in April 2021, the franchise network has shown ‘extremely strong interest’ in the opportunity and the central team has begun to rollout fulfilment plans.
Whilst the residential housing market currently remains very busy, supported by the government’s stamp duty holiday and introduction of the 95% mortgage, the group say that it is also ‘delighted’ by the progress made with its strategic initiatives which are set to drive organic, like-for-like growth even when the external market begins to normalise.
The Group will report its H1 trading update next month.
Strong performance from Property Franchise Group.Fair play to them and well done to those high performing individual franchisees .
However of more concern is the rapid expansion of Ewemove with 30 fresh lambs recently arriving at the sheep pen & plans to double the size of the network to 230 by 2022.
Good luck to them .
I wonder how that will work out in a market suffering from low inventory ?
“It is the poor man who counts his flock” Ovid
Disappointingly in the rush to increase the flock ,the recruitment policy seems little has altered with the high risk of failure for those without property experience downplayed .
“As long as you have the right attitude, are hard-working and follow our training plan you’ll be able to give your local competition a run for their money”
Although they state
“The EweMove Way is tried, tested & remarkable. Here’s why it works so well when used by experienced estate agents.”
However unfortunately not so well though for the 70+ franchisees who failed the vast majority with no experience
Amongst the recent fresh lamb recruits include some with experience.
An ex Purplebricks LPE for Ewemove Didsbury.
Ex Countrywide for Walderslade and some ex Nicholas Humphreys franchisees for Coalville & Swadlincote At least they know the game however its the 3rd franchise for the Didsbury franchisee as he had a Nicholas Humphrey franchise before Purpelbricks .3rd time lucky?
However those with experience arriving are not in the majority despite Ewemove’s previous announcement that they will skew recruitment towards.
Recent recruits include ex sandwich makers , a number of phone salesmen . Some intending to operate a franchise as a 2nd business ,some the last throw of the dice late middle aged career changers and the dreaded husband and wife teams which Ian Wilson the former CEO of Property Franchise group despaired about
“He said that husbands and wives and other personal partners wanting to work together made the failure rate shoot up dramatically – and that such applications made his heart sink”
One new franchisee for Colne Valley on his linkedin profile proudly announces “We sell Phones and Homes” Ostrich & Rea on Twitter suggested they rename ” Phones 4 ewe”
In Hyde the franchisee runs a sandwich shop
Still promoting the franchise as a safe haven . The franchisee for Dunstable who completed her 1st year of trading last December on her linkedin profile states
“After 25 years in the Dental Industry working for other people I took a MASSIVE decision and a change of direction into Estate Agency. Why? I wanted to be my own boss, I wanted some extra security”
Ewemove still perpetuating the myth it’s a safe haven despite the 70+ lost sheep .
Who cares?
This was a previous Ewemove’s Head Shepherd’s totally unempathic response to 70+failures on EYE in a comment .
“So we can throw examples of highly performing, successful franchisees & you’ll simply retort with,yeah but x agent failed” like a child in the playground that has run out of sensible arguments. ”
Sad indictment indeed on estate agency that he can somehow “argue sensibly” that as long as there are some success stories the 70 failures dont count and are acceptable collateral damage
That really is a disgrace
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Any news on whether Frew and Hollinrake have returned furlough and grant monies, or whether it’s been trousered?
PFG repaid less than £100k and it was the last franchise chain to do the right thing. The directors of Hunters used furlough and grant monies as “profits” before cashing out as part of the sale to PFG. The only honest and decent thing to do is to repay these monies that should never have been taken in the first place. The public will not forget.
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