Latest financial results from Belvoir, the UK’s largest franchise network, reveal that its recent acquisition of rival Northwood helped it boost group revenue by 19% during the first quarter of its financial year.
Revenue from its franchise fees increased by 5% including an 8% rise in lettings fees but a drop in sales fees of 4% when compared to the same period last year.
This, the company says, was caused mainly by the rush by investors and prime property owners to complete before last year’s Stamp Duty tax deadlines.
This year-on-year reduction was more pronounce within its 31-branch East of England brand Newton Fallowell where the sales fall-off was 13%.
But for investors, the galloping speed at which the Belvoir group is growing overall helped mitigate these sales reductions – Belvoir says its growth in sales was 33% as its rolls out sales across the UK.
Revenue at Belvoir increased by £700,000 driven mainly by the Northwood acquisition although the franchising of six formerly corporate-owned offices has cost £200,000.
“The Group has seen a healthy start to 201,” says Chairman and CEO Mike Goddard. “The Board has been working closely with franchisees providing the support they need to develop additional revenue streams and to take advantage of the growth opportunities that will arise from anticipated changes in the sector.”
Belvoir operates four brands – Belvoir, Newton Fallowell (which it bought two years ago for £6.38m) Northwood (for £22m in June 2016) and Goodchlds (in 2015 for £3.26 million) and now has 300+ franchised branches.