20th Nov 2019 11:52
(Alliance News) - Property Franchise Group PLC on Wednesday said trading during the second half of its current financial year has remained "strong".
Property Franchise operates six national and regional estate & letting agency brands.
Property Franchise said it has set a new record for lettings revenue at a franchisee level in October. The company's franchisees reported lettings income of GBP6.0 million, despite the loss of tenant fee income, following the ban on charging tenant fees having come into effect in England and Wales in June.
Tenant fees had previously represented 16% of the company franchisees' lettings revenue in this regions.
Meanwhile, growth in management commission - the recurring monthly fees which the company's franchisees charge landlords for property management services - has increased 10% year-on-year to GBP4.3 million in October, Property Franchises said.
"At a challenging time for the industry, where many independent lettings agencies are considering leaving the sector, our group continues to show its strength," said Chief Executive Ian Wilson.
"The sales market has softened further in the second half, however, our lettings business is outperforming our budgeted expectations. Our franchise business model has proven to be remarkably resilient in these testing conditions and we expect this to continue," added Wilson.
Property Franchise shares were trading 8.2% higher in London on Wednesday at 165.00 pence each.
By Evelina Grecenko; [email protected]
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