Martin & Co parent group reports ‘quiet market’ but rising profits

CEO Gareth Samples says results are good given economic backdrop as company's revenue more than doubles in two years.

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The Property Franchise Group achieved a strong financial performance in its most recent financial year through organic growth in lettings and the ongoing uplift of acquiring Hunters in March 2021.

The company, which includes Martin & Co, saw significant increases in revenue, management service fees, and adjusted EBITDA, leading to a profit ahead of market expectations.

TPFG’s managed portfolio increased by 2%, and the number of assisted acquisitions by franchisees increased 75%.

Group revenue increased 13% to £27.2 million (2021: £24.0 million) and it said although the first quarter of 2023 had been seasonally quiet it had still been ahead of expectations with regards to both revenue and profitability.

The residential market is expected to align with that of 2019 while a lack of stock, unprecedented demand, and rising mortgage costs have all driven rental inflation.

Profit prediction

The Neg reported in February how the Group’s acquisition of Hunters Property in March 2021 had put the firm in line to report a profit later this year.

Link to Franchising featureGareth Samples (pictured), Chief Executive Officer of The Property Franchise Group, says: “We have delivered another strong set of record results in 2022.

“Particularly pleasing given the economic backdrop and contraction in residential sales transactions. In two years, we have grown group revenue almost 2.5 times, maintained recurring revenues at half of group revenue, doubled adjusted profit before tax and grown adjusted fully diluted earnings per share by two-thirds.

“We have also put ourselves back in a net cash position within 18 months of our largest acquisition to date, Hunters, giving us a strong platform for future growth.

“As a result, the Board is recommending a final dividend for 2022 of 8.8p bringing the total dividend to 13.0p for the financial year. In two years, if approved at our AGM, the total dividend per year will have grown sustainably by 1.5 times.

“We have an excellent team in place, continuing to support a very experienced group of franchisees and a proven strategy which we expect to continue delivering growth in 2023 and beyond.”

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