Preliminary results released by Belvoir reveal a healthy increase in profits for 2014, attributed in part to the introduction of a successful sales service and a robust acquisition programme.
Dorian Gonsalves, Belvoir’s Director of Commercial and Franchising said: “The Senior Management Team is delighted to report that 2014 was another very good year for Belvoir.
“The introduction of our sales scheme has provided an excellent new revenue scheme for our franchise owners as well as the franchisor, showing an increase of 38% in 2014. We are delighted with the positive impact that sales is having on our turnover and profitability. Sales are likely to have a further significant impact throughout 2015 as many more of our franchise owners are choosing to take advantage of exciting new opportunities and are including property sales alongside lettings in the services that they provide.
“Preliminary results show that Belvoir’s pre-tax profits were up 10%, compared to 2013, which is entirely in line with our predictions. In terms of like-for-like growth in lettings we have exceeded sector performance.
“Belvoir’s strategic goal to grow organically and to accelerate this growth by seeking out bolt-on acquisitions has enabled the network to increase its presence throughout the UK.
“We have also continued to invest in marketing and training to ensure that Belvoir offers exceptional customer service in both sales and lettings and becomes the number one agent of choice for landlords, vendors and tenants.
“In terms of recruiting quality new franchise owners to the network, Belvoir continues to be a very appealing proposition. A total of 15 new franchise owners joined the network in 2014, and these were a mixture of resales and cold starts and we ended the year with 162 outlets including the largest acquisition in Belvoir’s history in Belvoir Edinburgh. We expect to have 170 outlets by the end of 2015.
“As we look ahead to the coming years, Belvoir is set to continue its growth strategy, strengthen its presence in the UK and constantly seek out acquisition opportunities to accelerate this growth.”
Financial Highlights
- Revenue up 11% to £6.5m (2013: £5.8m)
- Revenue growth underpinned by an 11% increase in Management Service Fees (MSF) to £3.2m (2013: £2.9m)
- Profit before tax up 10% to £1.8m (2013: £1.6m)
- Franchisee joining fees and resales commission up 55% to £421,000 (2013: £272,000)
- Contribution of £651,000 from the franchising of two corporate outlets
- Growing revenue stream from property sales of £834,000 (2013: £604,000), an increase of 38%
- Administrative costs of £4.9m (2013: £4.3m) include one-off expenses of £0.3m
- Final dividend of 3.4p (2013: 3.4p) giving total dividend for the year of 6.8p
Operational Highlights
- Underlying like-for-like growth in lettings business of 5.4% exceeds sector performance
- Six franchisee-led acquisitions secured with £2.0m of Belvoir funding delivering 19% return
- Total outlets of 162 (2013: 160) with the opening of 8 new territories and resale of 14 existing territories bringing 15 new franchise owners to the network
- Belvoir brand refresh to strengthen market presence
- Successful launch of BriefYourMarket marketing portal to the Belvoir network
- Market demand for private rental sector housing remains positive
Current Trading
- Three new franchise owners introduced covering one new outlet and two resales
- Belvoir training course now BTEC level 2 accredited
- Continuing take-up of property sales by franchisees
