Strategic Acquisition

RNS Number : 4760E

Belvoir Group PLC

11 March 2022

 

RNS Reach

Final

11 March 2022

BELVOIR!

BELVOIR GROUP PLC

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

Strategic Acquisition

Belvoir Group PLC (AIM:BLV), one of the UK's largest property franchise groups, is pleased to announce that it has acquired Mr and Mrs Clarke Limited ("MMC") for an initial cash consideration of £0.2 million and a possible additional deferred element, funded from existing Group resources ("the Acquisition").

MMC was founded in 2015 by Paul and Alex Clarke, offering a specialist concierge-style personal estate agency model through a national network of 10 licensed partners, predominantly in Warwickshire, South Wales, the Midlands and North London.

MMC has created a digital-first brand centred on being "discerningly different" by advertising homes in a truly beautiful way, with an industry leading website that enables its partners to run their businesses effectively without a High Street office.

With the brokerage model growing within the estate agency sector, the key strategic driver for the Acquisition is that MMC introduces a high-quality personal agency model to the Belvoir Group that is complementary to its existing high street brands. The Acquisition will offer customers a wider choice of how they interact with the Group, whilst operating in a very similar way as a franchise business. As part of Belvoir, MMC will benefit from a broad range of skills and expertise to support expansion of their network as well as the credibility of being part of an established, highly respected Group.

The Board anticipates the following opportunities arising from the Acquisition:

· Expansion of the MMC reach through increased lead flow of potential partners;

· Additional revenue streams from extending service offerings to include financial services and lettings;

· Enhanced legal, compliance, marketing, IT and general support to Partners and Associates through the Belvoir central franchise support system;

· Opportunity for accelerated growth under Belvoir's Assisted Acquisitions programme.

Executive directors of MMC, Paul and Alex Clarke, will continue to manage the business as part of Belvoir. The acquisition agreement provides for further consideration payable, on a capped basis, dependent on the performance of the business during the next three years.

Dorian Gonsalves, CEO of Belvoir, commented :

"The acquisition of Mr and Mrs Clarke provides the Group with a new service offering, which will recognise the breadth of ways in which our customers want to interact with their estate agent and the different ways in which potential new franchisees or partners want to operate.

"Paul and Alex have created a really positive, vibrant brand that stands out from the crowd.  The future success of their business will benefit from the credibility that the Belvoir Group can bring and we extend a warm welcome to the MMC team, and look forward to working alongside their partners to further strengthen the business' growth potential."

Paul Clarke, Managing Director, Mr and Mrs Clarke, commented:

"Dorian understood our vision from the word go, making this acquisition a natural step in the evolution of our business. The brokerage style business model is one which is becoming increasingly popular in the UK, especially in our new flexible working era.

"The opportunities arising from being part of a Group that is so experienced in estate agency, lettings, franchising and financial services, are extremely exciting for our partners, and we will be grabbing the opportunity with both hands to exceed our plans for further national business growth."

For further details:

Belvoir Group PLC Dorian Gonsalves, Chief Executive Officer Louise George, Chief Financial Officer www.belvoirgroup.co m	01476 584900 [e-mail]
finnCap Julian Blunt & Teddy Whiley (Corporate Finance) Tim Redfern (ECM) www.finncap.com		[phone]
Buchanan Charles Ryland, Kim Looringh-van Beeck & Tilly Abraham	[phone]

Notes:

About Belvoir Group PLC

Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise Group with 462 offices across six brands specialising in residential lettings, property management, residential sales and property-related financial services. With its Central Office in Grantham, Lincolnshire, the Group manages 72,900 properties and reported record revenues of £21.7m in 2020 marking Belvoir's 24^th year of unbroken profit growth.

For further information, please visit: www.belvoirgroup.com

 

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