Belvoir share price soars as profits at the property services group jump by a quarter
Belvoir Lettings, the Aim-listed agency business which runs a network of franchises across the UK, said revenues jumped by 19 per cent to £6.9m over the year, boosted by acquisitions.
Shares in the company, which counts ex-City workers and former servicemen among its franchisees, have surged by more than 13 per cent after posting a 25 per cent jump in profits to £2.2m, up from £1.8m the previous year.
Since floating three years ago, Belvoir has stepped up its expansion by snapping up smaller standalone lettings agencies, which are then operated under its own brand. However, it now runs two other brands after acquiring Newton Fallowell and Goodchilds last year.
Revenue from property sales was up 60 per cent to £1.4m thanks to its new businesses, which helped boost Belvoir's fledgling estate agency arm which launched in 2014 to help reduce its reliance on lettings. Over half its franchise owners now offer a property sales service.
Management service fees, which are collected from franchisees as a royalty for providing a brand, jumped by a quarter to £4m, of which 12.5 per cent came from the organic growth of the Belvoir network and 12.5 per cent from acquisitions. The company now has 212 outlets after adding 50 over the year.
Chief executive Mike Goddard, a former RAF wing commander who founded the firm with his wife in 1995, said: "2015 was a pivotal year for Belvoir. The company commenced its strategic vision of a multi-brand operation with the acquisitions of Newton Fallowell and Goodchilds, substantially increasing our presence across the East and West Midlands respectively.
"The board appreciated the support of our shareholders in funding the mid-year acquisitions and I am confident that the coming year will see the full impact of our successful multi-brand strategy as the new brands become further incorporated into the group," he said.