AGM Statement

RNS Number : 0050R

Property Franchise Group PLC (The)

25 June 2020

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR")

25 June 2020

The Property Franchise Group PLC

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

AGM Statement

The Property Franchise Group, one of the UK's largest property franchises, will hold its Annual General Meeting at 11.00am today at which Richard Martin, Non-Executive Chairman, will present the following update:

"Following a strong first quarter in line with expectations, the period from 1 April to 31 May 2020 saw the resilience of the Group clearly demonstrated:

· Due to the strength of our model, Group revenue declined just 20% year-on-year

· Management Service Fees ('MSF') from lettings management increased 2% year-on-year

· Total lettings MSF remained relatively robust, down 14% year-on-year

· No noticeable impact on rent arrears and a good number of new properties being let

· The business remained cash generative throughout the period

· Net cash of £5.3m at 31 May 2020 (2019: £2.5m), after deferring a VAT payment of £0.5m, allowing continued focus on growth by acquisition

We have also seen improving sales activity following the reopening of the property market in early May 2020:

· Sales listings in May 2020 were four times higher than April 2020

· Sales income improving, with exchanges in May 2020 at 51% of May 2019 levels

· EweMove starting to achieve similar levels of sales listings to pre-lockdown

At an operational level, our franchisees have moved quickly to resume a full-service offering following the lifting of restrictions on 13 May. Across the Group they have begun to cautiously bring some staff back from furlough and confidence is building, highlighted by the initiation of selective marketing activity, in response to the increase in customer demand. The Group is also encouraging franchisees to take advantage of its assisted acquisition programme as we believe there will be a number of opportunities arising from businesses less well placed than ourselves.

The Board continues to consider the payment of dividends and whilst it recognises that at this time maintaining a strong balance sheet is critical and there may be acquisition opportunities ahead, it intends to return to dividend payments as soon as it is appropriate to do so.

Looking forward, we see uncertainty persisting as the impact of the COVID-19 pandemic continues to be felt and we are, therefore, unable to provide meaningful guidance at this time. The Board remains confident that the Group is ultimately one of the best placed businesses in the industry to navigate the path ahead. Our strong balance sheet and robust model will enable us to take advantage of strategic opportunities as they arise, including executing on targeted acquisitions.

We have been proud to stand together with our franchisees throughout this period, providing stability alongside continued advice and support. I would like to take this opportunity to thank them again for their incredible hard work and tenacity. "

For further information, please contact:

The Property Franchise Group PLC   Gareth Samples, Chief Executive Officer David Raggett, Chief Financial Officer	01202 405549
Cenkos Securities plc Max Hartley, Callum Davidson (Nominated Adviser) Julian Morse (Sales)	0207 397 8900
Alma PR  Susie Hudson Justine James Harriet Jackson	0203 405 0205

About The Property Franchise Group PLC:

The Property Franchise Group PLC (AIM: TPFG) is one of the largest property franchises in the UK. The Company was founded in 1986 and has since grown to a diverse portfolio of six brands operating throughout the UK, comprising longstanding high-street brands and a hybrid, no sale no fee agency.

The Property Franchise Group's brands include: 

· Martin & Co: a national lettings focused brand

· EweMove: a national, digitally enabled, hybrid sales and lettings brand

· CJ Hole: a full-service estate agency serving the West Country for 151 years

· Ellis & Co: a full-service estate agency serving London for 168 years

· Parkers: a full-service estate agency serving the M4 corridor for 70 years

· Whitegates: a full-service estate agency serving the Midlands and North of England for 40 years

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

 

END

 

 

AGMSEMESLESSEFM