28th Jan 2020 10:34
(Alliance News) - Property Franchise Group PLC on Tuesday reported improved performance in 2019 despite the market headwinds.
The stock was trading 6.1% higher in London in morning trade at 228.00 pence a share.
The AIM-listed company said it has performed in line with expectations in 2019 despite a difficult year for UK residential property market. Property Franchise said it has achieved growth in both revenue and management service fees.
The company also noted that its franchisees mitigated much of the impact of the tenant fee ban and achieved a record performance for lettings revenue.
The tenant fee ban came into effect in June 2019, making it illegal to charge unfair additional fees - such as an administration fee - to tenants when they take on a new property, or renew a contract.
Property Franchise's revenue in 2019 grew to GBP11.4 million from GBP11.2 million the year before. Management service fees, meanwhile, rose to GBP9.6 million from GBP9.4 million, and the number of tenanted managed properties serviced increased to 58,000 at the year-end from 55,000.
The company said early indications of improving market conditions underpin its expectation that the volume of house sales will increase in 2020. The lettings market is also anticipated to remain healthy, Property Franchise said, with rising rents and increased confidence.
"Our ability to deliver revenue growth and continued operational progress over the year, notwithstanding the market headwinds, is testament to the strength of our business and the franchise model," said Chief Executive Ian Wilson.
"Looking ahead, there are numerous opportunities for us to now build further momentum across the business, as we continue to invest in our traditional brands and EweMove remains robust," added Wilson.
Property Franchise will report its 2019 results on March 31.
By Evelina Grecenko; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Propty Franchis