Property Franchise Group performs better than expected after fees ban

November 26, 2019

UK-based property company, the Property Franchise Group, updated the market on its trading on Wednesday, reporting that the second half of the financial year to date had remained strong, with management said to be confident that the group remained in line to achieve market expectations for the full year.

The AIM-traded firm said it had set a new record for lettings revenue at a franchisee level in the trading month of October, with franchisees reported lettings income of £5.96m.

 
Its board said significantly, that was achieved despite the loss of tenant fee income, following the ban on charging tenant fees coming into effect in England and Wales on 1 June.

Tenant fees had previously represented 16% of franchisee lettings revenue in those two countries.

The company put the performance largely down to mitigating actions encouraged by the group as a franchisor, that its franchisees had managed to alleviate the impact of the tenant fee ban, alongside “some pent-up tenant demand” feeding through.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

It said that was a “clear demonstration” of the benefits of the franchise business model.

Growth in management commission – the recurring monthly fees which franchisees charge landlords for property management services – had increased 10% year-on-year from £3.88m in October 2018 to £4.28m this October.

The group said it believed it was the “high level of satisfaction” of its landlord clients that lay behind its better-than-expected progress in shifting the burden of cost from tenants to landlords, as clients of its franchisees would rather retain their services than do it themselves or instruct another agent.

It had previously advised investors that it could take until the end of 2020 to fully mitigate the lost revenue from the ban, but its management said it was now confident that the objective of full mitigation would be attained by June 2020 – one year after the introduction of the ban.

“We are delighted that the mitigating actions we’ve recommended to our franchisees have taken effect as hoped and at a good pace,” said chief executive officer Ian Wilson.

Related: Property & Estate Agency – Search Franchise Reviews Directory

“We now expect to achieve full mitigation of the impact of the tenant fee ban a full six months earlier than originally hoped.”

Wilson said the firm’s ability to draw on its “wealth of industry experience” and act quickly to support its franchisee members provided it with an advantage in the market.

“At a challenging time for the industry, where many independent lettings agencies are considering leaving the sector, our group continues to show its strength.

“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.”

At 1423 GMT, shares in the Property Franchise Group were up 11.48% at 170p.

By Josh White

Source: ShareCast

Estate agents open new city office

November 20, 2019

A new office has been opened by a franchise estate agents.

Jason Barana and Anthony Barana opened the Allandale Road branch on Friday 8 November.

 
In a joint statement they said: “Century 21 UK is the right franchise to bring to Leicester and, by having the benefit of SDL Group behind us, we are in a strong position to stand out from other estate agents when it comes to selling and letting homes to new customers.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

“Having grown up in Leicester, the heart of our sales and lettings business will be based on the communities we have been brought up within, where people come first.

“You can count on a trustworthy, reliable, and honest service with us here at Century 21 Leicester.”

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Chris Summers, head of franchising for SDL Group, added: “Having met Jason and Anthony on a number of occasions, their determination to be a huge success locally has been evident and with the brothers having great local connections, I feel they will hit the ground running and be able to really stand out as a brilliant estate agency.”

Related: Century 21 Franchise

By Jon Robinson

Source: Insider Media

Franchise chain Belvoir announces sponsorship of landlords website

November 6, 2019

Franchise chain Belvoir has become the official lettings sponsor of property website Landlord Zone.

 
David Newton, Belvoir’s IT and marketing director, said: “Landlords are constantly faced with new and changing regulations and legislation – some of which can affect their profit lines, and also leave them vulnerable to ending up on the wrong side of the law.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

“Constant change can inevitably cause a great deal of confusion, especially to DIY landlords who may not always be in a position to devote the necessary time or resources to keep up to date.

“Thanks to this new partnership Belvoir will be in a position to provide much-needed clarification that will help landlords to remain compliant.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

“Each month Belvoir will provide a range of content for the Landlord Zone website, which will cover a wide range of subjects that will be of great interest to new and experienced landlords, whether they have one property or a large portfolio.

Related: Belvoir Franchise

“We will also be looking at financing challenges and opportunities, providing access to Belvoir’s unique quarterly rental index, and looking at ways to help landlords and investors review their portfolios to ensure they continue to maximise the potential of their investments.”

By ROSALIND RENSHAW

Source: Property Industry Eye

Belvoir founder to sell second tranche of shares for £2.1 million

September 29, 2019

Belvoir founder Mike Goddard also sold £1m worth of shares in December but still holds stock worth at least £2.5 million at today’s share price.

Mike Goddard, the founder and former chairman of franchising giant Belvoir has applied to sell two million of the 4.39 million shares he still holds in the company.

 
His sale of the shares will be at ‘no less’ than £1.05p per share but at the moment the company’s stock is being traded at £1.12p.

Therefore the 70-year-old will realise cash from the sale of between approximately £2.1 million and £2.24 million, reducing his shareholding in the company from 12.6% to 5.7% of its issued share capital.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

Back in May Goddard, who is also a director of The Property Ombudsman and a former chairman of the British Franchising Association, stepped down as chairman of Belvoir after nearly 25 years, and was replaced by Michael Stoop (left).

In December last year Goddard gave himself a well-earned Christmas present after he sold shares worth £989,700.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Both today’s news and the December share sale are part of a complicated deal struck following the purchase of Northwood which required the directors involved to wait two years before realising any shares.

Belvoir was set up by Goddard and his wife in 1995 after he left the RAF as a Wing Commander and it initially grew through franchising using its own brand, but later also through acquisition. As well as its own 174 offices it also operates 90 Northwood and 36 Newton Fallowell branches.

Related: Belvoir Franchise

By Nigel Lewis

Source: The Negotiator

Family-run property agency has built up its portfolio with continued success

September 24, 2019

Martin & Co Tunbridge Wells has boosted its managed portfolio by 43 per cent thanks to its latest independent agency acquisition.

Managing Director David Rogers has owned the Tunbridge Wells branch since 2009, with McAuley Miller his third but also largest acquisition to date.

 
David said: “We’re delighted to have completed on this acquisition and certainly hope there will be many more to come as we look to grow the business further.

“As a branch, we’re very much looking forward to helping our new landlords get the best out of their properties, while also ensuring the tenants are well looked after and benefit from our strong customer service ethos.”

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

A family-run branch, Martin & Co Tunbridge Wells’ staff include David’s wife Jackie (Property Manager), eldest daughter Vicky (Lettings Manager) and her husband Scott (Sales and Valuation Manager).

Ian Wilson, Chief Executive of The Property Franchise Group, added: “I met David and his daughter at a franchise show in 2009.

“He was an experienced agent looking to use our brand to develop a new venture.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

“I’m sure that he and his family are delighted with the progress he has made since.

“His clients speak very highly of the service they receive, and the seller’s clients will be welcomed warmly onboard.”

Martin & Co cover your local areas including Tunbridge Wells, Southborough, Rusthall, High Brooms, Langton Green, Pembury, Wadhurst, Hawkenbury, Eridge.

Written by David Rogers

Source: In Your Area

Belvoir profits jump as it outperforms across key markets in first half

September 3, 2019

Belvoir Group PLC (LON:BLV) reported a jump in profits for the first half of the year as its three business lines continued to outperform their respective markets.

For the six months to 30 June, the property franchise group generated a 23% rise in adjusted pre-tax profits to around £3mln, while revenues were up 48% at £9mln.

 
Financial services revenues tripled to £3.9mln, boosted by the acquisition of mortgage broker MAB (Gloucester) in November last year.

The core property franchise division lifted management service fees 5% to £4.2mln.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

The firm’s interim dividend was maintained at 3.4p per share.

On target for full year
Looking ahead, chief executive Dorian Gonsalves said the group had made a “promising start” to its second half and was trading in line with management expectations for the full year.

“Trading across lettings, sales and financial services continue to outperform their respective markets and deliver strong results”, he added.

Gonsalves told Proactive that the growth in the group’s results showed that its franchisees were “not only surviving but thriving” despite fears of a downturn in the property market.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

The CEO said that if the property sales market began to shrink, rental activity among its lettings agents was likely to increase due to a reduced number of buyers and higher numbers of “accidental landlords”, property owners that hold off and selling and decide to rent while waiting for prices to improve.

“We’re holding all the cards in terms of the rental stock”, Gonsalves said, with the company having around 64,500 properties under management.

Related: Belvoir Franchise

Franchise model “maximises potential”
In a note, analysts at Belvoir’s house broker finnCap reiterated their 190p target price on the firm, saying its franchise model “maximises entrepreneurial potential, flexibility and cash flow while minimising risk”.

The broker added that with the UK residential property market undergoing structural change alongside ongoing economic uncertainty, Belvoir had “significant potential” to gain market share, evidenced by the results.

Investors appeared to agree, with the shares jumping 6% to 117p in early trading on Tuesday.

Source: Proactive Investors

Widnes-based Fintech company celebrates second anniversary

September 1, 2019

WIDNES-based property investment company Sourced had cause to pop the champagne corks as it celebrated two years in business this week.

The company has now grown its UK-wide franchise empire to over 50 locations and, at the same time, completed property projects across the UK as well as launching its own Peer to Peer platform, Sourced Capital.

 
The finance initiative generated more than one million in funding within the first three months of going live.

Other successes for the group include a brand-new development of 585 units at the Regent Plaza in Manchester, with Phase One expected to be completed by the end of next year.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

The flagship development in Manchester adds to the growing GDV value of £264 million, Sourced have achieved in such a short space of time.

“We’ve had an incredibly exciting year, considering it’s only our second” said managing director Stephen Moss.

“As a business to achieve this level of growth in such a short space of time is fantastic and a credit to the team we have in place.

“Our new Peer to Peer platform operates under our Sourced Capital brand and is growing at a controlled and manageable rate with the key focus being delivering high service and great returns to our investors, we have some really amazing projects in the pipeline right now.”

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Yet another forward move for Sourced is a major re-branding exercise, which the group have almost completed, providing the four departments of the business with their own unique branding and website.

Source: Runcorn and Widnes World

Franchise brand opens new office – 20 years after launching its first

August 8, 2019

The owners of four branches of a franchise agency in Berkshire have launched a new office in the county, just over 20 years after opening their first.

Simon Gregory, Bruce Taylor and Dale Kempson – who already own Parkers offices in Burghfield Common, Theale, Tilehurst and Tadley in Hampshire – have now opened an additional branch in Spencers Wood.

 
Taylor, who launched Parkers Tilehurst alongside Dale in January 1999, says: “The Parkers name really is synonymous with the Reading area and pretty much anyone still in the estate and lettings agency business locally who started in the 1980s and 1990s would have begun their career at Parkers.”

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

He started his career in 1987 at Parkers in Wokingham, before several other roles in Berkshire led to him working under Kempson in Langley, near Slough. The pair joined forces in 1999 to open Parkers Tilehurst, before purchasing the Burghfield Common branch two years later.

Gregory then joined Bruce and Dale in 2010 and in 2013 the trio opened Parkers Theale.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Three years later they bought the Tadley office, with the Spencers Wood office opening its doors for the first time this summer.

Parkers is one of six brands under the Property Franchise Group umbrella.

Source: Estate Agent Today

Platinum Property Partners awarded top 16th position in the Elite Franchise Top 100!

August 8, 2019

Over the years, Elite Franchise Magazine have had the great privilege of working with some of Britain’s best franchises.

The company state that they were so inspired by these superlative businesses that we believed it was time to recognise the many matchless brands operating in the sector.

 
Now, the Elite Franchise top 100 is recognised as a new league table that celebrates the greatest franchises the UK has to offer.

Related: Property and Estate Agent Franchises UK – What Buying an Estate Agency Franchise Means for UK Franchisees

Allowing franchisors to duke it out on everything from growth to the support they offer franchisees, the Elite Franchise 100 recognises the sector’s brightest businesses and ranks them according to a broad range of criteria from their heritage in the industry to their contribution to the community and the way they embrace innovation.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Ranking applicants from 100 to one, this guide defines the best opportunities in the UK, whether they’re a flourishing franchise at the top of their game or a budding business making its first inroads into the industry.

Platinum Property Partners have been awarded the Top 16th position, ahead of franchises such as CEX, Anytime Fitness and Vodafone.

Related: Platinum Property Partners Franchise

If you’d like to download your own digital copy of this magazine, then visit the link below:

https://bit.ly/2B2nmNQ

Platinum Property Partners are now a member of the AFA as well as BFA!

August 8, 2019

PPP have received yet another seal of approval, as they have now become a full member of The Approved Franchise Association as well as The British Franchise Association! The AFA are dedicated to promoting the highest standards in the franchise industry and ensuring continued success for all those involved.

 
All potential AFA members undergo an extensive vetting process by an official body, which includes a detailed review of both prospectus and marketing material. As well as in-depth conversations with both the franchisor and franchisees. The aim of this process is to confirm that the franchise offering is completely ethical, sustainable and transferable.

Related: Property & Estate Agency Franchises – Search Franchise Reviews Directory

Those working for PPP said “we are proud to have gained the seal of approval to be part of this network for franchisors and look forward to offering our knowledge to the wider franchising community”.

Related: Platinum Property Partners Franchise