The Property Franchise Group (TPFG) has just released its half year results, with management planning to host a live virtual presentation and Q&A for investors at 1pm today.
Financial Highlights:
+ Group revenue increased to £13.2m (H1 2022: £13.1m)
+ Management Service Fees (“MSF”) increased 3% to £7.7m (H1 2022: £7.5m)
+ Adjusted EBITDA* increased to £5.8m (H1 2022: £5.7m)
+ Profit before tax increased 11% to £4.2m (H1 2022: £3.8m)
+ Basic earnings per share increased 4% to 10.3p (H1 2022: 9.9p)
+ Highly cash generative with net cash of £0.7m at 30 June 2023 (30 June 2022: net debt £2.6m)
+ Increased interim dividend by 10% to 4.6p (H1 2022: 4.2p)
* before share-based payments charge
Operational Highlights:
+ Recurring revenues contributed 65% of total revenue underpinned by growth in lettings revenue with lettings MSF up to 61% of total MSF (H1 2022: 55%)
+ Sales agreed pipeline remained strong at £28.4m (H1 2022: £33.8m)
+ Managing 77,000 rental properties (H1 2022: 74,000)
+ 7 acquisitions at the franchisee level (H1 2022: 8), added 806 managed properties (H1 2022: 1,001) contributing £0.8m (H1 2022: £1.0m) of managed income per annum to franchisee turnover
+ EweMove sold a further 17 new territories (H1 2022: 19), now totalling 194 territories (H1 2022: 178)
+ Acquisition of Michael Searchers Property Management Ltd in January 2023 for £0.25m adding 147 managed properties to the owned offices portfolio and £0.2m of annual lettings revenue
Gareth Samples, chief executive officer of TPFG, said: “It’s another period of record revenue for us, outperforming the market in both lettings and sales. Moreover, with continued focus on costs, slightly down despite the pay increases needed by our employees, we have also set another record for profit before tax.
“This year more than any other under my tenure demonstrates the strength of our franchise business model and the power that results from a network of entrepreneurial franchisees seeking to maximise the opportunities in their local marketplaces.
“Overall, our network’s lettings revenues have grown 12% to represent 61% of total network revenue, offsetting the expected impact of the reduction in UK sales transactions. Pleasingly, this has driven up our recurring revenues to 65% of total revenue.
“We remain extremely well-placed in the current environment and have a substantial growth opportunity to capitalise on. Part of that will come in the form of improved data usage which we are very excited about as we progress towards meaningful implementation in 2024.
“The second half of each calendar year usually generates higher revenues and profits. The second half to date appears to be following that trend so far. As a result, the Board remains confident that trading remains in-line with expectations for the full year and this confidence is reflected in the interim dividend for 2023, which I am pleased to report is up 10% to 4.6p.”
A presentation will be given by Gareth Samples and David Raggett, chief financial officer, at 1pm today.
The property franchisor says the presentation will be hosted via the Investor Meet Company platform. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9am this morning, or at any time during the live presentation.
To register to attend, following the link: Register as an Investor – Investor Meet Company
A recording of the presentation will be made available on the company’s website following the conclusion of the investor presentation.
