In a trading update for the six months to 30 June 2021, The Property Franchise Group described the period as ‘exceptional’ as profits increased sharply.
Revenue was significantly higher than for the same period in 2020, which was impacted by Covid, as well as 2019. The results, released this morning show that the company continues to benefit from the acquisition of Hunters, which completed on 19 March 2021.
Group revenue in the six months to 30 June 2021, increased by 111% on 2020. Like for like revenues (excluding those contributed from the acquisition of Hunters) for the period increased 35% on 2020 and 33% on 2019.
Highlights:
- Group revenue increased 111% to £11.4m (2020: £5.4m)
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- 35% like for like increase to £7.2m
- 33% like for like increase on 2019
- Management Service Fees (“royalties”) increased 69% to £7.1m (2020: £4.2m)
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- 35% like for like increase to £5.7m
- 23% like for like increase on 2019
- Network income increased 118% to £89.4m (2020: £41.0m)
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- 38% like for like increase to £56.3m
- Sales agreed pipeline increased 247% to £29.5m (2020: £8.5m)
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- 64% like for like increase to £14.0m
- Managing 73,000 rental properties (2020: 58,000)
- EweMove sold 37 new territories (2020: 6)
- Net debt of £5.0m after borrowing £12.5m to fund the acquisition of Hunters (2020: £nil)
TPFG says that the government’s initiatives to support the housing market, coupled with remote working and demand for more space, has contributed to the continued growth of its network’s residential property sales for the period. Compared to the same period in 2020, this growth exceeds 100%. At the same time the average sales fee charged has increased by over 10% in the last year, in-line with increasing house prices. These two factors have driven the increase in network income and the Group’s revenue.
Robust sales agreed, comparable with 2020 and considerably higher than 2019, have continued post period end. With significant sales agreed pipelines typically converting into fees at 20% per month and the current level of sales agreed, TPFG remain optimistic about the sales market this year. Similarly, lettings income remains resilient, with a 7% like for like increase in MSF over the same period in 2020.
EweMove
EweMove, the Group’s hybrid estate agency, has continued to build on its brand positioning, with the sale of 37 new territories in the period setting a new record for the total number of territories operating of 149. This 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
The integration of Hunters continues to progress well. The Group says that today’s update demonstrates that the strategy to acquire an estate agent with a strong focus on sales was the right one. The strengths of its new enlarged team continue to complement one another as they forge ahead with our strategic initiatives to drive organic growth.
Given the Group’s strong first half trading performance and the continued favourable market dynamics outlined above, the company remains confident in a very strong trading performance for the full financial year.
Chief executive officer, Gareth Samples, commented: “We are delighted to report that the first six months of trading have been an exceptional period for the Group. The UK’s housing market has seen activity levels that I have not witnessed before in my career, supported by peoples’ desires to move homes.
“We had the resources and capabilities to make the most of the exceptionally busy housing market and deliver a first-class service to those looking to buy, sell and let. Prior to the start of this year, we had enhanced the Group’s senior management team and have continued to do so, offering our franchisees advice and support commensurate with their scale and ambitions. This, coupled with the acquisition of Hunters and our partnership with LSL, has undoubtedly supported us in our mission to be the UK’s leading property franchisor.”
A good update from PFG and it’s a shame they haven’t clarified when Hunters furlough monies will be repaid? It’s one of small number of the larger firms who appear to have trousered the money, ie Glynis Frew and her cohort. PFG belatedly announced that it would be repaying all grant and furlough monies and eventually did the right thing.
Can a journalist ask for clarity over Hunters furlough monies? It has either been used for Directors bonuses, which have already been publicised, or it has been repaid to the taxpayer.
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If any agent out there hasn’t had the best H1 ever it would be a shocker.lets see the real result at year end
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Acc To accounts Hunters received £163,658 in COVID payments from Govt and £100k of local authority grants
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TPFG and their leadership team always impress me . Looking forward to seeing them grow and Innovate.
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Yes nothing wrong with the results and all credit to them
What is concerning and not taking anything away from the succesful franchisees many of whom have enjoyed a bumper H 1 is Ewemove are recruiting on steroids with a campaign along the lines of when franchises are gone they gone.
Roll up roll up the property market is booming when in fact inventory is very short on supply .No mention of the high risks of failure. A very questionable campaign
Just ask recent recruits ,Ewemove franchisees Droitwich (12th April) and franchisee South Shore (11th May) who have yet to bag a single instruction
Maybe have a word with Mervyn of EWEMOVE WEST GRIMSBY who in recent weeks his company finally dissolved with a hefty deficit ,Ex valeter,late career changer .
A far cry from his high hopes in 2019 in the local paper
“I started on this journey with a very clear vision – to use what had made me unhappy with estate agents in the past and create something completely different and unique, that would cause everyone who used us to want to recommend us on to their own family and friends. I operate on the very simple principle that I treat people how I want to be treated myself, and that passion for excellent service has been my driving force throughout this year and of course will continue to be so for the future”
Now 63 facing retirement not with a £500k golden payout as promoted but a heavy debt burden .
His linkedin profile sadly says “Taking a Career Break”
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Any chance of knowing how much taxpayers money was taken and will now be paid back please Property Eye?
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The Head Shepherd has been interviewing a number of new franchisees which are available on Youtube
“NEW FRANCHISE INSIGHT LAUNCH SERIES”
To those who have never been involved in estate agency before he asks the question
“What made you choose estate agency”
They invariably say My Mum /friend .Gran /we have recently sold our/their house and we weren’ t impressed with the agent and thought we could do better ,
Seriously?
I bet they didn’t say that about their dentist.
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Talking of pulling teeth……
Personally I don’t think there’s anything wrong at all in someone wanting to provide a service in their local community to a better standard than is currently being delivered.
Surely that’s the essence of entrepreneurship and why should someone be denied the opportunity to go for it if everything stacks up for both parties?
EweMove do make bold statements in the recruitment message I agree.
But this is backed up by the ongoing internal support we get
I came from a zero experience background, have made plenty of sacrifices along the way and have worked tirelessly to get to where we are as a business.
And for that I’m not only proud, but grateful.
Happy teeth pulling : )
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Donovan Glad things are working out well for you and for many others .There are always individuals who will make a success out of what they turn their hand to Good luck to you To be honest you dont cause me any concern
However do you think that Ewemove adequately flag up the risks involved to potential franchisees and do they identify that there have been over 70 failures which is a stagerring amount by any yardstick , some of which have walked away with life changing amounts of debts .
I am unaawre of any franchieses who have exited by selling their franchise let alone for £500k as flagged up in the promotions
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“Surely that’s the essence of entrepreneurship and why should someone be denied the opportunity to go for it if everything stacks up for both parties?”
Sure They should not be denied an opportunity. Nobody is doubting the passion ,commitment or skillsets from those arriving from sales backgrounds etc and the ability to learn .
However don;t confuse entrepreneuship and professionalism .
However being a professional estate agent and presenting yourself as such to an unsupecting public after a brief course,a few webinars as someone who can accurately “value “a property for sale which could have onerous covenants, easements planning and structural issues only experience will reveal is misleading.
Some of the property descriptions by some of the fresh lambs are a joke. Seems thatt no 3rd parties are checking.
For example fresh lamb Ewemove Gosforth started on the 2nd July pitching on Facebook on the 11th saying this They hadn’t helped any landlords at all not thousands as they had 0 instructions and had only been going 2 weeks
“At EweMove Gosforth we help THOUSANDS of landlords get the best possible returns for their rental properties. Find out more”
That is totally misleading
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Hillofwad when you are bleat about Ewemove it becomes boring and lack of knowledge from you. I do take objection about you using the word being ‘unprofessional ‘. Are we the best out of a bad bunch ??
Here are the facts. We are No 1 as the Most Trusted Agent as voted via Trustpilot by over 12,000 comments. Maybe we just made that up.
We have won National Awards for Sales and Lettings which is independently assessed by the Jury via mystery shops. etc………we have increased our presence and our systems are ideal for 2021 and beyond.
You need to present a balance case to your arguments and need to focus maybe on your own business as you spent soooooo much time looking at Ewemove. Not sure if you have had a bad experience with a sheep in the past but something has clearly ruffled ewe.
I’m an Ex Bank manager and know the business really well and with start-ups stats will always show a high drop off due to the risk….like most other Franchise / Self Emp …….
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TPFG have always shown solid leadership in the space – and with the addition of Hunters, demonstrate an impressive company.
Not too shabby!
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