TIDMTPFG
RNS Number : 8316G
Property Franchise Group PLC (The)
29 July 2021
29 July 2021
THE PROPERTY FRANCHISE GROUP PLC
("TPFG", the "Company" or the "Group")
Half Year Trading Update
The Property Franchise Group PLC, the UK's largest property
franchisor, is pleased to provide the following trading update
ahead of publishing its interim results on Tuesday 14 September
2021.
The Group has achieved strong results in the first six months of
2021. Pleasingly, like for like revenue and Management Service Fees
were significantly up on the same period in 2020 and, more
importantly, 2019. This is owing to a very active residential
housing market, and the acquisition of Hunters Property PLC
("Hunters"), which completed on 19 March 2021.
Highlights:
-- Group revenue increased 111% to GBP11.4m (2020: GBP5.4m)
o 35% like for like increase to GBP7.2m*
o 33% like for like increase on 2019*
-- Management Service Fees ("royalties") increased 69% to GBP7.1m (2020: GBP4.2m)
o 35% like for like increase to GBP5.7m*
o 23% like for like increase on 2019*
-- Network income increased 118% to GBP89.4m (2020: GBP41.0m)
o 38% like for like increase to GBP56.3m*
-- Sales agreed pipeline increased 247% to GBP29.5m (2020: GBP8.5m)
o 64% like for like increase to GBP14.0m*
-- Managing 73,000 rental properties (2020: 58,000)
-- EweMove sold 37 new territories (2020: 6)
-- Net debt of GBP5.0m after borrowing GBP12.5m to fund the
acquisition of Hunters (2020: GBPnil)
* like for like comparison excluding the impact of the
acquisition of Hunters.
The Government's initiatives to support the housing market,
coupled with remote working and demand for more space, has
contributed to the continued growth of our network's house sales
for the period. Compared to the same period in 2020, this growth
exceeds 100%. At the same time the average sales fee charged has
increased by over 10% in the last year, in-line with increasing
house prices . These two factors have driven the increase in
network income and the Group's revenue.
Robust sales agreed, comparable with 2020 and considerably
higher than 2019, have continued post period end. With significant
sales agreed pipelines typically converting into fees at 20% per
month and the current level of sales agreed, we remain optimistic
about the sales market this year. Similarly, lettings income
remains resilient, with a 7% like for like increase in MSF over the
same period in 2020.
EweMove, the Group's hybrid estate agency, has continued to
build on its brand positioning, with the sale of 37 new territories
in the period setting a new record for the total number of
territories operating of 149. This puts the Group well on track to
achieve one of its core strategic aims: to double the size of
EweMove territories to 230 by the end of 2022.
The integration of Hunters continues to progress well. Today's
update demonstrates that our strategy to acquire an estate agent
with a strong focus on sales was the right one. The strengths of
our new enlarged team continue to complement one another as we
forge ahead with our strategic initiatives to drive organic
growth.
Given the Group's strong first half trading performance and the
continued favourable market dynamics outlined above, we remain
confident in a very strong trading performance for the full
financial year.
Chief Executive Officer, Gareth Samples, commented: "We are
delighted to report that the first six months of trading have been
an exceptional period for the Group. The UK's housing market has
seen activity levels that I have not witnessed before in my career,
supported by peoples' desires to move homes.
"We had the resources and capabilities to make the most of the
exceptionally busy housing market and deliver a first-class service
to those looking to buy, sell and let. Prior to the start of this
year, we had enhanced the Group's senior management team and have
continued to do so, offering our franchisees advice and support
commensurate with their scale and ambitions. This, coupled with the
acquisition of Hunters and our partnership with LSL, has
undoubtedly supported us in our mission to be the UK's leading
property franchisor."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain
For further information, please contact:
The Property Franchise Group PLC
Gareth Samples, Chief Executive Officer
David Raggett, Chief Financial Officer 01202 405549
Cenkos Securities plc (Nominated Adviser and Broker)
Katy Birkin, Callum Davidson
Julian Morse, Alex Pollen, Dale Bellis (Sales) 0207 397 8900
Alma PR
Susie Hudson
Justine James
Harriet Jackson 0203 405 0209
About The Property Franchise Group PLC:
The Property Franchise Group PLC (AIM: TPFG) is the largest
property franchisor in the UK and manages the second largest estate
agency network and portfolio of lettings properties in the UK.
The Company was founded in 1986 and has since grown to a diverse
portfolio of nine brands operating throughout the UK, comprising
longstanding high-street focused brands and a hybrid, no sale no
fee agency.
The Property Franchise Group's brands are Martin & Co,
EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates,
Mullucks & Country Properties.
Headquartered in Bournemouth, UK, the Company was listed on AIM
on the London Stock Exchange in 2013. More information is available
at www.propertyfranchise.co.uk
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END
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