Update on the Brook acquisition

RNS Number : 0017Z

Belvoir Lettings PLC

12 December 2017

 

For immediate release

12 December 2017

 BELVOIR!

BELVOIR LETTINGS PLC

(the 'Group' or 'Belvoir')

Update on the Brook acquisition

Belvoir lettings plc (AIM:BLV), the UK's largest property franchise group, is pleased to provide an update on the successful performance and assimilation of Brook Financial Services, following its recent acquisition by Belvoir in July 2017.

Brook Financial Services ('Brook') was acquired for a total consideration of £2.0 million with a view to achieving materially greater penetration of Belvoir's client base and increasing the financial services fees generated on property sales across all of Belvoir's multi-brand networks. 

In the past two months Brook has reported £570,000 of net written business which is up 57% on October and November 2016 and is running at over 40% ahead of the average business achieved in the first seven months of 2017 prior to being acquired by Belvoir.

Brook currently has three new mortgage advisers in training and is actively recruiting further advisers to provide additional capacity.  To date the focus has been on the Group's predominantly estate agency network, Newton Fallowell, with Brook now working with 17 offices within that network where previously no financial services had been offered.  Of the 39 Newton Fallowell offices, including 8 which had existing arrangements, 66% now offer financial services and other mortgage related products.  In addition, Brook has continued to grow its portfolio of independent estate agents which act as introducers to Brook.  Increased revenue resulting from a greater number of policies being written and a higher case value is being reported in line with the Group's projections as at acquisition.

Dorian Gonsalves, CEO of Belvoir, commented:

"When we acquired Brook, we were confident that it would be able to deliver strong growth of its existing business whilst increasing its capacity to provide financial services initially to the Newton Fallowell network before extending this to the wider Belvoir Group.

The roll out to the Newton Fallowell offices is underway and from January 2018, Brook will start to work with some of the more sales-focused Belvoir and Northwood offices.  This is a key strategy for growth for both our franchisees and the Group.

The recent significant growth, against the background of falling mortgage approvals as the housing market is perceived to be cooling overall, is evidence of Brook's ability to outperform the market."

Enquiries:

Belvoir Lettings plc                                         Dorian Gonsalves, Chief Executive Officer Louise George, Chief Financial Officer	01476 584 900
Cantor Fitzgerald Europe                                             Rick Thompson Philip Davies Will Goode	0207 894 7000
Buchanan            Charles Ryland Vicky Hayns Madeleine Seacombe [e-mail]	0207 466 5000

About Belvoir Lettings PLC

Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir operates a nationwide property franchise group with 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.

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

In 2015 Belvoir launched its multi-brand franchising strategy and now owns Newton Fallowell Limited in the East Midlands, Goodchilds Estate Agents and Lettings Limited in the West Midlands and Northwood GB Limited, a nationwide network.  In total, the Group operates from 300 territories within the UK.  In July 2017, the Group acquired Brook Financial Services Ltd, a mortgage broker and financial service provider.

The Company remains committed to diversifying its brand portfolio, utilising the Group's strong franchising expertise and infrastructure, in order to capitalise on a consolidating market.

 

END

 

 

UPDUAUVRBUAUAAA