30th Jan 2020 11:41
(Alliance News) - Belvoir Group PLC on Thursday said annual pretax profit will be "comfortably" ahead of management expectations after a 43% year-on-year rise in revenue.
Shares in the company were up 11% at 163.85 pence each in London.
The property franchise group predicts 2019 revenue to rise to GBP19.5 million from GBP13.7 million a year ago, with the property division recording 6% growth despite a subdued sales market and the tenant fee ban.
Annual management service fees, the company's core income from franchisees, is anticipated to rise 4% to GBP8.8 million in 2019 from GBP8.5 million, with the company's franchisees fully mitigating the tenant fee ban impact.
Part of the mitigation arose from the ongoing success of the assisted acquisitions programme, the company explained, which supported 24 franchisees making local portfolio acquisitions, adding 4,500 managed properties. At year-end, Belvoir's portfolio of managed properties was up 7% to 67,000, a record level.
Belvoir's financial services unit also achieved significant revenue growth in 2019 following the acquisition of MAB (Gloucester) in November 2018 and a 35% increase in financial services network. The company now has 166 financial advisers versus 123 in 2018.
"The board remains committed to its growth strategy of capitalising on further consolidation within the property sector and through diversification into other property-related services. With January 2020 signalling a marked improvement in both sales and mortgage transaction numbers, I am optimistic about the growth opportunities for Belvoir in the year ahead," said Chief Executive Dorian Gonsalves.
Belvoir is slated to release 2019 results on March 30.
By Tapan Panchal; [email protected]
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