Franchisee Led Acquisitions-Further Growth

RNS Number : 3596P

Belvoir Lettings PLC

31 August 2017

 

For Immediate Release                                                                                                                                31 August 2017

BELVOIR LETTINGS PLC

(the 'Group' or 'Belvoir')

Franchisee Led Acquisitions-Further Growth

Belvoir lettings plc (AIM:BLV), the UK's largest property franchise, is pleased to announce that the Group has secured further growth and an increase in the number of properties it has under management following twelve franchisee-led acquisitions during 2017 across the country. Following a series of acquisition roadshows to franchisees earlier this year, the Group strategy of growth through its Assisted Acquisitions programme, already familiar to the Belvoir network, has now been embraced by franchisees from the recently acquired networks.  Of the twelve acquisitions, six were secured by Belvoir, five by Northwood, and a further one by Newton Fallowell.

These acquisitions which are in London, Epsom, East Horsley, Newbury, Trowbridge, Hereford, Telford, Hinkley, Lincoln, Bolton and Oldham, have increased network revenue by £1,732,000 at a total deal cost of £2,116,000. Together, the acquisitions will increase MSF (Management service Fees), which is Belvoir's main revenue stream from its franchisees, by £188,000 in a full year and £83,000 in the current financial year.

Interest receivable from the part funding under the Assisted Acquisitions programme is another source of income for the Group.  With Belvoir having contributed £322,000 of the funding required, the Group will receive a further £29,000 p.a. in interest.

Belvoir now represents 57,637 properties under management following the addition of 1,310 from these latest acquisitions.

Dorian Gonsalves, CEO of Belvoir commented;

"I am delighted that our networks have been very active, supported strongly by available financing and resource from our Central Office operations. The Assisted Acquisition programme has contributed significantly to Belvoir's continued growth over recent years and we now expect to exceed the additional network revenue from acquisitions set by the Board for 2017.  We have further such deals currently with lawyers and other opportunities under review, with the aim of enabling our franchisees to benefit from consolidation in the sector. Belvoir is here to support our franchisees entrepreneurial growth ambitions, which will benefit the Group and our shareholders alike."

For further details:

Belvoir Lettings PLC Dorian Gonsalves, CEO Louise George, Chief Financial Officer	01476 584900 [e-mail]
Cantor Fitzgerald Europe Rick Thompson, Phil Davies, Will Goode	0207 894 7000
Buchanan Charles Ryland, Vicky Hayns, Madeleine Seacombe	0207 466 5000

The information communicated 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.

Note to Editors:

About Belvoir Lettings PLC

Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise group with over 300 offices across four brands offering a range of specialist services in property rental, property management, residential lettings, buy to let and property sales. With its Central Office in Grantham, Lincolnshire, the Group manages over 57,000 properties and reported revenue of £9.9m in 2016 making Belvoir the largest property franchise group in the UK.

 

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