The losses that its online agent EweMove made in the first half of its financial year have been “substantially reversed”.
That’s according to a trading update from its parent company The Property Franchise Group (TPFG) for the year to December 31, 2017, issued yesterday ahead of its full-year results on April 10, 2018.
TPFG, which also owns the Martin & Co, CJ Hole, Ellis & Co, Parkers and Whitegates brands, said its revenue increased by 23% to £10.2m during the year, while its network of offices expanded to 403 (made up of 283 traditional brands and 120 EweMove) up from 377 in 2016.
EweMove recruited 31 new franchisees during the 2017, with another six franchisees for its more traditional brands.
Despite the prospect of the introduction of a tenant fees ban in spring 2019, TPFG said it was still eyeing expansion in the private rented sector and did not expect there to be any adverse impact on trading for the financial year to December 31, 2018.
TPFG remains heavily weighted towards lettings, which accounts for 70% of management service fees (against 74% in 2016).
Nonetheless, chief executive Ian Wilson said that 2017 was a tougher year of trading than 2016, particularly for sales in London.
He added: “Our network continues to grow, with our traditional brands having performed very well, and benefitted from website improvements applied using insights gained from EweMove.
“These improvements generated 17,000 new business leads for franchisees from pay-per-click campaigns, with website lead volumes increasing between 200% and 550% year-on-year in Q4 17.
“The trading losses incurred at our EweMove subsidiary in H1 17 were substantially reversed in H2 17 trading, during which period EweMove traded profitably.
“Franchisee recruitment continues to be an area of focus at EweMove, particularly the number of experienced estate agents being recruited.
“The new managing director at EweMove, having joined in June 2017, has made a very positive impact, turning around profitability and supporting the business development of existing franchisees.”
EweMove, bought for £9m in September 2016, lost £300,000 on revenues of just £900,000 in the first half of 2017, while the two founders left in June of that year.
Nick Neill, the York franchisee, was subsequently appointed managing director.
Comments (10)
That’s very kind of you to say Robert. We have always set out to be open & honest and compete cleanly, which we’re proud to be able to do every day.
We’ve refined and honed our service since inception in 2013 and more latterly of course, and continue to offer vendors & landlords, buyers & tenants the No1 rated service in the UK (based on Trustpilot reviews). And the fact that more and more experienced agents are joining the flock speaks volumes about what we can offer them in terms of a solid, reliable and profitable platform to build their business upon.
We’ve seen record growth in 2017 and look set to achieve even more in 2018!
I got to meet Mr. Neill at the PFG conference last weekend, he is sharp, switched on and instantly likeable. I’m still no fan of the name but I will repeat my respect for what has already been achieved by Ewemove and under Nick Neill it should do well.
Ewemove in my opinion is the role model for hybrid agency; it competes cleanly, on service, with agents who actually are, judging by the quality of my local franchisee in North Devon, real estate agents.
“…agents who actually are, judging by the quality of my local franchisee in North Devon, real estate agents.”
This doesn’t happen very often, Mr May – but I have to disagree with you.
Now I’m not saying that someone who hasn’t been an Estate Agent can’t become one – and an excellent one at that; nor am I saying that years or even decades of experience guarantees that person be the right person for the job. This is exactly where the line in the sand gets washed away by the ebb and flow of the tide.
However, I refute your statement on the grounds of the following evidence:
Exhibit ‘A’:
http://www.propertyindustryeye.com/not-baaad-agent-who-set-up-firm-with-no-experience-named-ewemoves-franchise-of-the-year/
Exhibit ‘B’:
Mr Neill himself had no previous industry experience prior to buying a patch of grass.
And Exhibit ‘C’ – from the ‘ewefranchise’ website:
“No Estate Agency Experience Required
Hardly anybody in our business has worked in the sector. All you need to be is a nice “People Person” and someone who delivers on what they promise”
I rest my case.
Over to the defence…
It’s simple. The defence is in the outcomes we achieve.
Perhaps you could research First Direct Bank. Launched on a Sunday in October 1989 – yes, a Sunday. They only employed people without any banking or retail financial services experiences. Very quickly went on to become the best liked, referred and trusted bank in the UK.
If you train people properly on the technical aspects of a role, you can do very well and outperform industry incumbents.
Knowledge can be trained, skills and attitude can’t.
So even though we do encourage industry people to join the flock, we still decline many experienced agents, and we decline many inexperienced people too. We focus on finding the best people to represent our brand and achieve the success that our vendors and landlords want.
Mr Head_Shepherd#2
I’ll give you credit where due – like your predecessor you’re not one to hide away from criticism – and that’s admirable.
“The defence is in the outcomes we achieve.”
Which would be…?
“If you train people properly on the technical aspects of a role, you can do very well and outperform industry incumbents.”
Two words there to focus on:
“If”
The biggest small word in the English language. As Commander Montgomery Scott will say, in approximately 265 years,
“Aye – and if my grandmother had wheels, she’d be a wagon.”
“Can”
One extra letter is all that is needed to completely reverse its’ polarity.
“Knowledge can be trained…”
Not always, it can’t.
“…skills and attitude can’t.”
MOST ‘skills’ are “trained”. You “learn” not to wet the bed… you learn to talk; to hold a knife and fork. None of these ‘skills’ come naturally. Mistakes are made… bedclothes get changed, food is wiped up off your granny’s Axminster – and you are swiftly told that the rather… shapely… lady who lives next door-but-one isn’t called ‘Fat Wendy’ outside of your front door.
“So even though we do encourage industry people to join the flock, we still decline many experienced agents, and we decline many inexperienced people too. We focus on finding the best people to represent our brand and achieve the success that our vendors and landlords want”
Well… I would suggest that the wording taken from the article here on EYE on 12 December puts a slightly different slant on that, Sir:
“EweMove, acquired by The Property Franchise Group last year, has changed its recruitment model: it used to make a point of recruiting franchisees from outside the industry, but has more recently emphasised its desire to recruit experienced agents.”
With the above in mind, would you like the opportunity to re-examine your defence?
#To_You…
Can’t believe I missed a golden opportunity… a sitting duck… a mahoosive open goal.
Mentally scratch the last line of the above, please – and see only this instead
#To _ewe…
(exits stage to the left…)
It’s hard to defend against a claim which is looking for problems or issues or a lack of skills or outcomes, when one doesn’t exist.
Our sales and completion rates are excellent. The prices we achieve on sales are excellent when compared to the high street, (or even recent press coverage re our Purple friends). Our customer feedback is the best in the UK (Just look at Trustpilot)
We have nothing to hide and I’d be happy to compare our results against your own agency should you wish. If you’re confident in your own business model and renown for success in your local area, I’m sure you’d love to see what such a comparison might reveal.
It should be interesting to see the stats for Renown. They are after all the best independent in Cramlington.
What are your completion rates Paul? It would be interesting to see how you fair given that you’re not on Rightmove.
Helloooo, Mr Achroyd!! Long time no see!
I’ve just come across this post while looking for an EYE article on your old company.
Have you posted this on the wrong line? Or the wrong article?
I can’t see reference to Paul Reynolds/Renown anywhere.
I’ll pass it on to Paul, though, via Tw@tter.
Just spotted this. We are number one in Cramlington area for sales and lettings, year on year. Last time I checked figures we had about 25% of the sales and the next best performer about 17%.
Lettings we are even further ahead.
Hard work, local knowledge, long hours, always learning.