Initial figures released by Belvoir show a positive increase in profits for 2014, credited in part to the introduction of a successful sales service and a robust acquisition programme.
Dorian Gonsalves, Belvoir’s Director of Commercial and Franchising said: “The Senior Management Team is pleased to report that 2014 was another very good year for Belvoir.
“The introduction of our sales program has delivered an excellent new revenue scheme for our franchise owners as well as the franchisor, giving an increase of 38% in 2014. We are excited by the positive impact that sales is having on our turnover and profitability. Sales are likely to have a more substantial impact throughout 2015 as more of our franchise owners are taking advantage of the new opportunity and are including property sales in the services that they offer.
“Initial results show that Belvoir’s pre-tax profits were up 10%, compared to 2013, which is completely in line with our forecasts. In terms of like-for-like growth in lettings we have surpassed sector performance.
“Belvoir’s strategy to accelerate growth organically by seeking out bolt-on acquisitions has allowed the network to multiply its presence across the UK.
“We have also maintained investment in training and marketing to guarantee that Belvoir offers outstanding customer service in both sales and lettings and becomes the number one agent of choice for tenants, vendors and landlords.
“In terms of recruiting excellent new franchise owners to the network, Belvoir remains a very appealing proposition. A total of 15 new franchise owners entered the network in 2014, and these were a combination of resales and cold starts and we ended the year with 162 outlets including the most substantial acquisition in Belvoir’s history in Belvoir Edinburgh. We anticipate 170 Belvoir outlets across the UK by the end of 2015.
“As we look ahead to the coming years, Belvoir is set to continue its growth strategy, increase its presence in the UK and continually seek out acquisition opportunities to accelerate this growth.”
- Revenue up 11% to £6.5m (2013: £5.8m)
- Revenue growth reinforced by an 11% increase in Management Service Fees (MSF) to £3.2m (2013: £2.9m)
- Profit before tax up 10% to £1.8m (2013: £1.6m)
- Franchisee joining fees and resales commission up 55% to £421,000 (2013: £272,000)
- Contribution of £651,000 from the franchising of two corporate outlets
- Growing revenue stream from property sales of £834,000 (2013: £604,000), an increase of 38%
- Administrative costs of £4.9m (2013: £4.3m) include one-off expenses of £0.3m
- Final dividend of 3.4p (2013: 3.4p) giving total dividend for the year of 6.8p
- Underlying like-for-like growth in lettings business of 5.4% exceeds sector performance
- Six franchisee-led acquisitions secured with £2.0m of Belvoir funding delivering 19% return
- Total outlets of 162 (2013: 160) with the opening of 8 new territories and resale of 14 existing territories bringing 15 new franchise owners to the network
- Belvoir brand refresh to strengthen market presence
- Successful launch of BriefYourMarket marketing portal to the Belvoir network
- Market demand for private rental sector housing remains positive
- Three new franchise owners introduced covering one new outlet and two resales
- Belvoir training course now BTEC level 2 accredited
- Continuing take-up of property sales by franchisees