Acquisition of The Mortgage Genie

RNS Number : 0439L

Property Franchise Group PLC (The)

08 September 2021

 

8 September 2021

THE PROPERTY FRANCHISE GROUP PLC

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

Acquisition of The Mortgage Genie

Delivering strategic growth in the Financial Services Division

The Property Franchise Group PLC, the UK's largest property franchisor, is delighted to announce the acquisition of 80% of the issued share capital of The Mortgage Genie Limited ("TMG") ("the Acquisition"). The initial consideration is £400,000 with an estimated additional payment of c.£90,000 once the post completion process has been satisfactorily finalised.

TMG is a mortgage broker operating as an Authorised Representative of the PRMIS mortgage network which is owned by LSL Property Services Limited ("LSL").

The acquisition is in line with TPFG's strategy to grow the number of financial services advisers serving its network and its strategic partnership announced with LSL on 27 April 2021. The Acquisition demonstrates TPFG's commitment to developing its financial services income stream and providing the capacity required to serve its franchisees with mortgage and protection services.  

TMG offers digitally enabled and tailored mortgage and protection services to a growing client base including the franchise network of TPFG's hybrid brand, EweMove. Founded in 2016 by Matt Stevens, who will continue to lead the business, TMG is fully invested in delivering on the long-term vision to grow its advisor capacity, develop its call centre capabilities and significantly grow its protection income. The business currently employs 17 people including 10 advisers and, with the support of TPFG, this growth will be supported and accelerated.

In the year to 31 July 2020, TMG generated £950,000 of turnover and £71,000 of profit before tax and, with the improvement in the market since then, management are confident of exceeding that performance in the financial year ended 31 July 2021.

Gareth Samples, Group Chief Executive Officer of The Property Franchise Group said: "The Acquisition of TMG demonstrates our commitment to strategically grow the Group's financial services capability which will ultimately provide a meaningful contribution to our franchisees' and Group's financial performance. We are delighted to be welcoming Matt and his team to the Group at such an exciting time in its growth journey and we believe we have the resources in place to enable TMG to increase its market share, whilst simultaneously enabling the Group to develop its financial services income stream."

For further information, please contact:

The Property Franchise Group PLC   Gareth Samples, Chief Executive Officer David Raggett, Chief Financial Officer	01202 405549
Canaccord Genuity Limited (Nominated Adviser and Broker) Bobbie Hilliam Tom Diehl	0207 523 8000
Alma PR  Susie Hudson Justine James Harriet Jackson	0203 405 0209

About The Property Franchise Group PLC:

The Property Franchise Group PLC (AIM: TPFG) is the largest property franchisor in the UK and manages the second largest estate agency network and portfolio of lettings properties in the UK.

The Company was founded in 1986 and has since grown to a diverse portfolio of nine brands operating throughout the UK, comprising longstanding high-street focused brands and a hybrid, no sale no fee agency.

The Property Franchise Group's brands are Martin & Co, EweMove, Hunters, CJ Hole, Ellis & Co, Parkers, Whitegates, Mullucks & Country Properties. 

Headquartered in Bournemouth, UK, the Company was listed on AIM on the London Stock Exchange in 2013. More information is available at    www.propertyfranchise.co.uk

 

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