Belvoir bounces back from profits dip with strong results
The group's results for the first six months of the year pick up after a dip at the end of last year, with revenue and profit rising.
Belvoir Group says its lettings and acquisitions rescued its figures for the first half, with a jump of 10% in profits to almost £4.4 million.
The franchise firm says this healthy outcome was “largely thanks” to its acquisition strategy and the strength of its core lettings business.
There was also a 3% increase in revenue to £15.9m, as well as 4% increase to £5.5 million in management service fees, which are the main revenue stream from franchisees.
Lettings were up 8%, but sales down 9% to £7,3 million.
Acquisitions
Belvoir acquired the Mortgage Advice Bureau (South West), a financial services business of 20 self-employed advisers, for £1m last month.
Dorian Gonsalves, CEO at Belvoir, says: “The outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions.
“With 58% of their revenue derived from a strong recurring lettings market, our property franchisees have been able to offset the impact of the reduction in UK housing transactions,” he says.
Resilient model
“Meanwhile our financial advisers are mitigating the lower level of new purchase mortgages by servicing demand for remortgages and other related products from their substantial client banks.
“Our resilient business model and our proven growth strategy underpin the ongoing success of the Group’s performance and consequently, the Board confirms that the Group is trading comfortably in line with management’s expectations for the year ending 31 December 2023.”
