Issue of Equity

RNS Number : 8487X

Belvoir Lettings PLC

11 May 2016

 

For immediate release                                                                                                                                         11 May 2016

BELVOIR!
             

BELVOIR LETTINGS PLC

(the "Company", the "Group" or "Belvoir")

Issue of Equity

Belvoir Lettings plc (AIM: BLV), one of the UK's largest property franchises, announced at the time of its preliminary results on 4 April 2016 that Newton Fallowell, the business Belvoir acquired in July 2015, had already exceeded its 2017 EBITDA target of £1.0m and consequently the earn out due to the Newton Fallowell vendors in 2017 of £933,380 would now be settled in shares in 2016. Accordingly, the Company has issued and allotted 818,754 new ordinary shares of 1 pence each in the Company based on the average mid-market share price of £1.14 for the 28 days prior to 5 May 2016 in relation to the settlement of the 2017 deferred consideration.  These shares will be subject to a 12 month lock-in.

Application has been made for the shares to be admitted to trading on the AIM Market of the London Stock Exchange on 16 May 2016 ("Admission"). 

The new Ordinary Shares will rank pari passu with the existing Ordinary Shares in issue. Following Admission, the Company's total issued share capital will comprise 31,365,517 Ordinary Shares. This number may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Mike Goddard, Chief Executive Officer of Belvoir Lettings, said:

"Newton Fallowell was the first acquisition in our multi-brand franchising strategy which has proved to be very successful with strong trading from the Newton Fallowell network exceeding expectations.  The Newton Fallowell management team has demonstrated confidence in the wider Belvoir Group by opting to take their 2017 earn-out in Belvoir shares which they will be required to hold for at least 12 months." 

For further details:

Belvoir Lettings PLC Mike Goddard, Chairman and CEO Louise George, Chief Financial Officer	01476 584900 [e-mail]
Cantor Fitzgerald Europe Rick Thompson, Phil Davies, Michael Reynolds Corporate Finance	020 7894 7000
Buchanan Charles Ryland, Victoria Watkins, Madeleine Seacombe	0207 466 5000

About Belvoir Lettings PLC

Founded in 1995, Belvoir is one of the UK's largest specialist lettings agency franchises, with 212 outlets nationwide.

Since listing on AIM in February 2012 (BLV.L), Belvoir has continued to diversify its core business offer in lettings (representing 77% of revenue) by broadening into property sales. Operating from its Central Office in Grantham, Lincolnshire the Group now offers a range of specialist services in property rental, property management, residential lettings, buy to let and property sales.

Belvoir's core revenue is derived from Management Service Fees (MSF); a reliable recurring revenue model which allows the Group to offer franchisees significant support and advice.

In 2015, Belvoir launched its multi-brand franchising strategy; acquiring Newton Fallowell Ltd, a network of 30 franchised and one corporate estate and lettings agencies in July 2015. Furthermore, in October 2015 the Group acquired Goodchilds Estate Agents and Lettings Limited, a network of 14 property sales and lettings branches located across the West Midlands.

Belvoir continues to grow organically by delivering award winning service, prioritising franchisee recruitment and supporting franchisee acquisitions. In recognition, the Group was awarded the "Best Lettings Agency Franchise Award" at the 2015 Agency of the Year Awards for the fifth time since the awards started six years ago.

The Company remains committed to diversifying its brand portfolio, utilising Belvoir's strong franchising expertise and infrastructure, in order to capitalise on a rapidly increasing target market.

 

END

 

 

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