5th Sep 2022 11:23
(Alliance News) - Belvoir Group PLC on Monday said a weaker market and higher costs hit its first-half profit, but noted a strong pipeline of agreed sales heading into the second half.
In the first half of 2022, the Lincolnshire, England-based property franchise group said revenue rose 12% year-on-year to GBP15.4 million from GBP13.8 million. It said 1% of this stems from underlying growth, with 11% the result of corporate acquisitions.
Belvoir acquired Nicholas Humphreys network and Nottingham Mortgage Services in 2021, and Mr & Mrs Clarke and the Time Group in 2022.
Pretax profit, however, dropped 16% to GBP4.0 million from GBP4.8 million.
Shares in Belvoir were down 5.1% to 213.50 pence each in London on Monday morning.
The firm said the profit decline was expected, and due to the lower volume of property sales transactions after an "exceptionally strong market" in the previous year. Belvoir also noted an increase in costs as operations returned to normal after the Covid lockdowns in the first half of 2021.
Nonetheless, Belvoir maintained a 4.0 pence per share interim dividend, unchanged from the prior year.
"Whilst there has been an expected correction in the first half of 2022, the housing market has remained resilient...Having reported [first half] profitability in line with our start of year expectations and given the strong pipelines of agreed house sales and mortgages at the end of [first half], the board is confident of achieving its expectations for the full year," said Chief Executive Officer Dorian Gonsalves.
The firm remains on the look out for acquisitions that meet its strategic investment criteria, it said.
By Elizabeth Winter; [email protected]
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