2nd Apr 2019 09:58
LONDON (Alliance News) - Belvoir Lettings PLC hiked its 2018 dividend after saying Tuesday that profit and revenue rose in a year of "significant" growth for the letting agent franchisor.
In 2018, pretax profit widened 41% to GBP5.5 million from GBP3.9 million the year prior, as revenue rose 21% to GBP13.7 million from GBP11.3 million.
Belvoir Chief Executive Officer Dorian Gonsalves explained Belvoir had achieved "another year of significant growth" which saw it "outperforming both the sales and lettings elements of the housing market and the financial services market".
Like-for-like lettings management service fees grew 2.6% during the year, beating the growth seen in the UK rental sector as a whole. Lettings were helped by a 4.5% uplift from its assisted acquisitions programme which was performing "ahead of our expectations".
During the year, Belvoir completed 26 franchisee-assisted acquisitions which added GBP6.9 million in network revenue. This was ahead of the GBP6.6 million target for the year.
Belvoir now has 365 offices, up 22% from 300 the year prior.
"2018 saw the group invest further into financial services with the acquisition of MAB Glos which has provided a platform for Belvoir to build a nationwide network of financial advisers to work with our franchise owners to maximise the sales of mortgages and other property-related financial services to our customers," Gonsalves added.
In November 2018, Belvoir acquired MAB Gloucester Ltd for GBP4.3 million. This is a network of 87 financial service advisers across 64 offices.
"Belvoir is uniquely positioned within the property sector, benefiting from the agility of a franchise business model compared with the larger corporate players, whilst providing our networks with the Central Office systems and support, not available to the smaller independent agents," Gonsalves continued.
Belvoir proposed a 3.8 pence per share final dividend, up 8.6% from 3.5p the year prior. For the full year, the dividend rose 4.3% to 7.2p from 6.9p the year before.
"Our value creating strategy has enabled us to consistently deliver profit growth for over two decades and achieve a threefold increase in profit before tax since 2014," Gonsalves added. "Belvoir is a strongly cash generative business with revenues underpinned by the recurring 'annuity-style' lettings income stream coupled with the diversification into complementary property-related services, which will enable the group to overcome changes and outperform in the sector over the coming year."
Shares in Belvoir were 1.6% higher at 102.10 pence on Tuesday.
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