31st Mar 2020 12:37
(Alliance News) - Property Franchise Group PLC on Tuesday said profit edged lower in 2019, due to a share-based premium charge, though revenue rose.
For 2019, the multi-brand lettings and estate agency franchisor posted pretax profit of GBP4.0 million, down 7.0% from GBP4.3 million the year before.
This was due mainly to a share based payments charge of GBP441,709, up from GBP49,857 in 2018, alongside administrative costs which remained flat at GBP5.8 million.
Revenue, meanwhile, increased by 1.7% to GBP11.4 million from GBP11.2 million year-on-year, driven by growth in management services fees by 3% to GBP9.4 million and EweMove revenue rising by 13% to GBP3.1 million.
Property Franchise will not be recommending a final dividend for 2019, due to uncertainty caused by Covid-19.
Looking ahead, trading in the first two months was in line with expectations. However, in March the group has taken action to comply with UK government measures for stemming the spread of Covid-19.
All of Property Franchise's high street premises have closed, with property management and client accounting services carried out remotely by staff. As a result of the pandemic, the group said it is not possible to provide guidance on future earnings.
"With the group facing a very challenging trading environment we have focused all of our efforts on intensive support to our franchisees, which at this time largely takes the form of advice and guidance rather than tactical financial assistance. We have also been working hard to negotiate with suppliers on franchisees' behalf. Under the leadership of incoming CEO Gareth Samples, the board's focus in the period ahead will be on navigating the challenges this unprecedented situation brings and supporting our network," Chief Executive Officer Ian Wilson.
Shares in Property Franchise Group were up 1.7% at 150.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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