Belvoir revenues rise as group outperforms market

Belvoir Group reported a 3% increase in revenue for the first half of 2023 compared to the previous year, despite challenging market conditions.

In a trading update to the City this morning Belvoir said it was performing better than the overall market in its three revenue streams: lettings, sales, and financial services.

SERVICE FEES

The property division saw a 4% increase in core management service fees, with strong lettings performance offsetting a decline in property sales.

The financial services segment saw an 11% revenue growth, exceeding initial forecasts.

Belvoir’s acquisition strategy remains active.”

Belvoir’s acquisition strategy remains active and the company maintains a strong balance sheet with net cash of £0.4m.

Dorian Gonsalves (main picture), Chief Executive of Belvoir Group, says: “Our tried-and-tested franchise business model, the diversity of our income streams, the recurring nature of our lettings revenue and our successful acquisition strategy, both at franchisee and corporate level, have enabled the Group to meet and overcome the challenges currently facing the property sector.

“Our franchisees derive 80% (H1 2022: 78%) of their income from recurring lettings fees and have benefitted from increasing rents.

“This has more than offset the impact of a reduction in UK housing transactions in H1 2023.

“Meanwhile, our financial services advisers have been able to meet client demand for remortgages and product transfers in the face of increasing mortgage rates and this has mitigated the reduction in new purchase mortgages.”

UNCERTAINTY

And he adds: “The high degree of uncertainty created in the property and mortgage markets following the mini budget in September 2022 and subsequent interest rate rises, resulted in a drop-off in mortgage applications and house sales instructions towards the end of 2022 and made it very difficult to forecast the impact of increasing bank base rates on these markets in 2023.

“However, 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.”