Franchising giant Belvoir says it has enjoyed a ‘strong’ period of trading during the first six months of 2019 despite the tenant fees ban although its franchised branch network appears to have hit a ceiling at 300 offices.
Belvoir says both profits and revenues from its network will be comfortably ahead of the same period last year when it reveals its half-year results on September 3rd.
Management fees from its franchisees increased by 5% during the period across both sales and lettings despite a weakening sales market and the introduction of the tenant fees ban.
The group’s results have also been buoyed by its recently-acquired mortgage arm Brook Financial Services where turnover increased by 23% year-on-year.
Belvoir bought the mortgage broker in July 2007 for £2 million with a mixture of cash and shares.
“The Board was very encouraged by trading during the first half of 2019 with our franchise model proving to be resilient to changes in the sector and our diversification into financial services providing an additional revenue stream for both our franchisees and the Group,” says Dorian Gonsalves, the CEO of Belvoir.
“We have seen positive results both from our property franchise and our financial services networks, and are confident that the Group is well positioned to take advantage of the opportunities arising from a more challenging market.”
Belvoir says it expects to meet City expectations for its performance this year.