The Property Franchise Group (TPFG) has just published its interim results for the six months ended 30 June 2024.
The transformational period for the company has resulted in the doubling the size of the business and increasing interim dividend by 30%.
TPFG has also announced the appointment of Ben Dodds to succeed David Raggett as chief financial officer on 1 January 2025.
Dodds will join the firm on 1 October 2024 as CFO designate. Raggett will continue to support the board and will be involved in overseeing a number of projects when he steps down from the board.
The last six months has seen the commencement of another transformational period for the Group following the merger with the Belvoir Group PLC and the acquisition of GPEA, owner of The Guild of Property Professionals and Fine & Country. Group revenue more than doubled compared to the prior period with significant increases in franchising and financial services, along with the addition of a new licensing revenue stream.
Financial Highlights:
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Group revenue increased 104% to £26.9m (H1 2023: £13.2m) |
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3% like for like increase to £13.6m1 |
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Management Service Fees (“MSF”) increased 60% to £12.3m (H1 2023: £7.7m) |
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8% like for like increase to £8.3m1 |
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Adjusted EDITDA2 increased 65% to £9.6m (H1 2023: £5.8m) |
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Adjusted Profit before tax2 increased by 71% to £9.1m (H1 2023: £5.3m) Profit before tax increased by 15% to £4.8m (H1 2023: £4.2m) |
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Adjusted basic earnings per share2 increased 12% to 15.5p (H1 2023: 13.9p) |
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Net debt of £14.3m after borrowing £20m to fund the acquisition of GPEA (H1 2023: net cash of £0.7m) |
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Cash generated from operations increased to £3.7m (H1 2023: £3.6m) after the payment of the majority of the acquisition costs in H1 2024 |
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Increased interim dividend by 30% to 6.0p (H1 2023: 4.6p)
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1Like for like comparison excluding the impact of the acquisition of Belvoir Group on 7 March 2024, and GPEA on 31 May 2024
2Before share-based payments charge, exceptional items and amortisation arising on consolidation.
Operational Highlights:
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Merger with Belvoir in March 2024 and acquisition of GPEA in May 2024 |
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Sales agreed pipeline increased 67% to £47.5m (H1 2023: £28.4m) |
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16% like for like increase to £32.8m1 |
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Managing 152,500 rental properties (H1 2023: 77,000) |
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2% like for like increase to 78,0001 |
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EweMove sold 22 new territories (H1 2023: 17) |
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Financial services commissions increased 756% to £7.7m (H1 2023: £0.9m), with all of the increase being driven by contribution from Belvoir |
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Senior leadership team restructured and objectives agreed as part of the integration process |
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Chief executive officer, Gareth Samples (right), commented: “I am delighted to be reporting record results following an exciting and transformational period where revenue doubled through the merger with Belvoir.
“We have continued to benefit from the strong demand in the lettings market and to achieve growth in sales and financial services despite sales completions being slower than anticipated at a national level which is testament to the excellence across the Group. Furthermore, the acquisition of GPEA at the period end adds significant further scale and opportunities to grow shareholder value.
“With activity levels increasing and revenue generation typically higher in the second half of the financial year, combined with our confidence in delivering further profitability in 2024, I am pleased to announce a 30% increase in the interim dividend to 6p (H1 2023: 4.6p).
“With our highest ever sales agreed pipeline of £47.5m and at least one interest rate reduction behind us, the Board is confident that trading remains at least in line with market expectations for the full year.”
