First Day of Dealings

RNS Number : 7646X

Belvoir Lettings PLC

21 February 2012

 



For immediate release	21 February 2012

BELVOIR LETTINGS PLC

(the "Company" or "Belvoir")

First Day of Dealings

Belvoir Lettings PLC, one of the UK's largest lettings franchises, announces commencement of dealings in its ordinary shares under the TIDM 'BVR' and ISIN number GB00B4QY1P51 on the AIM market of the London Stock Exchange plc ("AIM"). At the placing price of 75 pence per Ordinary Share (the "Placing Price"), following Second Admission, which is expected to occur at 8am on 22 February 2012, the market capitalisation of the Company will be approximately £15.5 million.

The placing raised £7.29 million for the Company and totals 9,718,954 ordinary shares of 1 pence each ("Ordinary Shares"). Following Second Admission the Company's enlarged issued share capital will be 20,666,667 Ordinary Shares.

Seymour Pierce is acting as Nominated Adviser and Broker to Belvoir.

Highlights

·           Belvoir is one of the UK's largest specialist residential lettings businesses. It is an award winning franchised lettings agency business. Belvoir and all its franchisee businesses (the "Belvoir Network") have 142 franchised offices operating across the UK and a Company owned office in Grantham.

·           The Belvoir brand, which has national reach and a strong market presence, is based on providing a professional and personal service designed to exceed the expectations of landlords and tenants. The franchisee recruitment process is lengthy and rigorous and all franchisees are required to be members of NALS (National Approved Lettings Scheme).

·           The UK lettings market is in a steady growth phase which is predicted to continue for many years. There are an estimated 3.0 million privately rented properties in England, accounting for almost 14 per cent. of all households in England. This represents an increase of nearly 40 per cent. on the corresponding figure 10 years ago.

·           Belvoir has delivered consistent growth since its inception in 1995. The combined Belvoir Network fee turnover was approximately £20 million in the year ended 31 December 2010, more than double the £8.7m figure for the year ended 31 December 2005. The Belvoir group has been consistently profitable over the last 5 years.

·           There is considerable potential for geographic expansion of the Belvoir Network. Belvoir intends to grow the number of franchisees from its current 142 franchised offices to over 200 franchised offices by 2016.

·           As a profitable and highly cash generative business, Belvoir has historically paid dividends and intends to continue to do so following Admission.  The Directors intend to pursue a progressive dividend policy providing an attractive yield to shareholders.

Use of Proceeds

The net proceeds of the Placing received by the Company will be approximately £6.3 million and will be applied principally by the Company to fund:

-       payment of the cash consideration required to completely exit Stephanie Goddard one of the joint founders of the Belvoir business;

-       the expansion of the Belvoir Network through appointing Franchisees in new territories;

-       to provide additional support to grow the business of individual Franchisees; and

-       to establish a number of Belvoir owned outlets. 

A copy of the Admission Document and relevant information provided under AIM Rule 26 is available from the Company's website at www.belvoirlettingsplc.com

Commenting on the Placing, Mike Goddard, Chairman, said:

"We are delighted to be debuting on the AIM market of the London Stock Exchange today. The Belvoir franchise operates in the stable and growing UK residential lettings market and is excited about its expansion plans to continue to grow its presence in this market. The response from our new institutional and private shareholders has been very encouraging and we look forward to life as a public company."

For further details:

Belvoir Lettings PLC Mike Goddard, Chairman Dorian Gonsalves, Managing Director	01476 584900
Seymour Pierce Guy Peters or Sarah Jacobs, Corporate Finance Jeremy Stephenson or Katie Ratner, Corporate Broking	020 7107 8000
Buchanan Charles Ryland, Suzanne Brocks, Catherine Breen	0207 466 5000

 

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