Cheers Liz! Disastrous Mini-Budget dampens big agency’s results
Pressure on interest rates from the mini-budget forced a small dip in pre-tax profits at Belvoir, down to £9.1 million from £9.3 million, the Group has reported.
Pressure on interest rates from the Mini-Budget forced a small dip in pre-tax profits at Belvoir, down slightly to £9.1 million from £9.3 million, the property franchise group reported this morning.
Chief Executive Dorian Gonsalves said Belvoir Group revenue increased 14% to £33.7m (2021: £29.6m) with 12% attributable to acquired businesses such as Mr and Mrs Clarke and The Time Group.
UNBROKEN
Profit before tax was just 2% lower at £9.1m (2021: £9.3m), but profit after tax was marginally ahead making 2022 a 26th year of unbroken profit growth.
Continued strong lettings bias was reflected in gross profit ratio of 56% lettings, 16% sales, 23% financial services and 5% other.
Meanwhile administrative costs were up 16% to £11.2 million with 10% reflecting the increased size of the Group and 6% attributable to inflationary pressures.
ACQUIRED
In March last year Belvoir acquired Mr and Mrs Clarke for £0.05 million and later in May it also snapped up The TIME Group, a network of 63 financial services advisers, for £4.5 million.
2022 was a much stronger year for the property market than many analysts had forecast.”
Gonsalves says: “2022 was a much stronger year for the property market than many analysts had forecast.
“However, the Mini-Budget in September crystallised the general pressure on interest rates and created significant uncertainty in the financial markets, which in turn impacted on sales instructions and mortgage applications in Q4 of 2022.
“Whilst we have seen a bounce-back in our mortgage activity for the year to date, up around 20% on Q4 2022, with house transactions taking up to five months to complete from agreeing a purchase, the increased market activity so far in Q1 will take until H2 to flow through to our financial performance.
“Our property franchisees benefit from the strong recurring lettings fees earned from their managed property portfolios, and our financial advisers are able to draw on their extensive bank of clients who are looking to remortgage.”
