The company operating Your Move’s franchise network has revealed higher revenues but reduced profits as it completes its transformation from a traditional estate agency operation to a franchise model.

Your-Move.co.uk Ltd’s 2024 accounts reveal revenues climbed 23.8% to £10.256 million across its 151-branch network, but operating profit before exceptional items fell by £813,000 (or 26.6%) to £2.249 million. The company also incurred exceptional costs of £88,000 from discontinuing parts of the business that didn’t become franchised.

Paul Hardy (pictured), Managing Director at parent company LSL Estate Agency Franchising, tells The Neg: “Lower profit than 2023 simply reflects a full year of investment into supporting the growth of our Franchise Partners (the transition took place halfway through 2023, so 2023 profit does not reflect a full year of the franchise model).

Two consecutive years of profit demonstrates that our business model is robust and is testament to the successful performance of our Franchise Partners.”

“Two consecutive years of profit demonstrates that our business model is robust and is testament to the successful performance of our Franchise Partners.”

And, according to the directors’ report: “This model is a higher-margin business with a significantly smaller fixed cost base, resulting in improved and substantially less volatile earnings through housing market cycles.”

“Advantages include the continued distribution of related products and services, including long-term provision of financial services, the potential to grow network footprint without significant additional investment, by supporting the expansion of franchisees and recruiting new franchisees and the opportunity to benefit from (their) entrepreneurship and agility.”

Transformation complete

The report also shows the business is now a ‘wholly franchised’ after Your Move disposed of its remaining owned estate agency operations during May 2023.

Its transformation has dramatically reduced the workforce from an average of 484 employees in 2023 to just 99 in 2024, with staff costs, including directors’ remuneration, falling from £11.5 million to £3.6 million.

Your Move expects to continue subleasing its branches to franchisees until head lease agreements end or are novated, with opportunities to explore future growth under the new franchise arrangement.

LSL performance

Overall, though, parent company LSL is faring better. Last year, it reported strong 2024 results for the first half of that year, with profits jumping to £14.4 million, up from £3.2 million.

The franchise group, which also owns Reeds Rains, says the results were in line with its expectations after a strong start to the year.