Good Progress on New Franchisee Recruitment

RNS Number : 1173I

Belvoir Lettings PLC

07 December 2015

 

For Immediate Release

7 December 2015

BELVOIR LETTINGS PLC

(the "Group" or "Belvoir") 

Good Progress on New Franchisee Recruitment

Belvoir Lettings plc (AIM: BLV), one of the UK's largest property franchises, announces today that it has made good progress with recruitment of new franchisees during 2015. Supporting the signing of new franchisees, the two acquisitions of Newton Fallowell adding 31 outlets and Goodchilds adding 14 outlets, have driven the rapid growth of the Group this year. Together with 168 Belvoir outlets the group now stands at 213 offices nationwide. This compares with a total number at the end of December 2014 of 162, representing an increase in the number of franchises of 31%.

During the first half of the financial year Belvoir reported that one new franchisee had been placed into a new Belvoir office. As anticipated in the interim report, the second half of the year has been much stronger with six new franchisees being recruited into new territories, reflecting renewed stability within the market following the General Election.  In addition, this follows the launch mid-year of Belvoir's new recruitment website, incorporating the recent brand refresh, and changes to the management and focus of the recruitment team.  The pipeline of new franchisees for 2016 has also started well with two new prospective franchisees having already committed to Belvoir's February training course.

Additionally, resales of Belvoir franchises have played a key part in progressing the Belvoir brand during the year with a further four having been resold to new franchisees during the year. These resales are particularly advantageous to Belvoir as the Group benefits from £22,500 per resale from each new franchisee joining, and also by earning commission on the resale. In June 2015 the Belvoir Sheffield franchise was resold for the highest ever value for a Belvoir franchise,  at a value of close to £1.0m, bringing a new owner to the territory and maintaining this office in the top three performing Belvoir offices.

Mike Goddard, Chairman and CEO commented:

"2015 has been a fantastic year of development and progress for Belvoir. New franchisees are a key area of focus and efforts to increase this in the second half of the year, including a new recruitment website, are starting to prove effective resulting in a good pipeline of new franchisees for 2016.

Together with the two acquisitions of Newton Fallowell and Goodchilds, the Group has grown considerably during 2015."  

For further details:

Belvoir Lettings PLC Mike Goddard, Chairman and CEO Louise George, Finance Director	01476 584900 [e-mail]
Cantor Fitzgerald Europe Rick Thompson, David Foreman, Corporate Finance David Banks,  Tessa Sillars, Corporate Broking	0207 894 7000
Buchanan Charles Ryland, Gabriella Clinkard, Madeleine Seacombe	0207 466 5000

About Belvoir Lettings PLC

Belvoir was founded in February 1995 by Mike and Stephanie Goddard and operates from its Central Office in Grantham, Lincolnshire.  Belvoir successfully listed on the AIM market of the London Stock Exchange on 21 February 2012.

Belvoir is recognised as one of the largest specialist lettings agency franchises in the UK, with 167 outlets nationwide. The company offers a specialist service in property rental, property management, residential lettings, buy to let and now property sales, in selected locations. Each local Belvoir office is owned and personally managed by local owners, operating under licence from Belvoir Property Management (UK) Ltd.

Belvoir was officially awarded the Best Lettings Agency Franchise Gold Award at the 2015 Agency of the Year Awards in association with The Sunday Times & The Times for the 5th time in the 6 years of the awards history.

In July 2015 Belvoir acquired Newton Fallowell Ltd, a network of 30 franchised and one corporate estate and lettings agencies and in October Belvoir acquired Goodchilds Estate Agents and Lettings Limited, a network of 16 property sales and lettings branches located across the West Midlands. The Company is now committed to developing a multi-brand franchising strategy. Across the networks, the Group operates through 214 outlets.

 

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