Belvoir Lettings makes £2m acquisition, founder steps down as CEO

AIM-listed Belvoir Lettings said on Thursday that it has acquired Barnsley-based Brook Financial Services for a total consideration of £2m as it announced that founder Mike Goddard will be standing down as chief executive officer with immediate effect.

The consideration will be satisfied by a £1.5m cash payment from existing cash resources and the issue of £0.5m new ordinary shares in Belvoir to the sole shareholder, Michelle Brook, which are subject of a three-year lock in.

Brook, which trades as Mortgage Advice Bureau, is an appointed representative of AIM-listed networks for mortgage intermediaries Mortgage Advice Bureau. Belvoir said it will continue its long-term relationship with MAB whilst leveraging its expertise to introduce new mortgage products and services to the group.

Michelle Brook, the founder and sole shareholder and director, who has worked within the financial services sector for over 30 years and set up Brook Financial Services in 2010, will continue working full time as the managing director.

For the 12 months to the end of July 2016, Brook generated revenue of £1.6m and pre-tax profit of £0.4m.

Belvoir also provided a very brief update on Thursday, saying it has had an encouraging start to the year with trading currently in line with the board's expectations.

Chairman Mike Goddard said: “We are delighted to be announcing the acquisition of Brook. Having focused on growth plans to create an enlarged group of franchise networks and offices over the past two years, the acquisition of Brook will enable both individual franchisees and the group to benefit from greater penetration of its client base and the increased revenue arising from the sale of financial services associated with property sales across all group networks.

“Also, with effect from today, I have stepped down from my role as chief executive officer but will continue as chairman. Having worked closely with Dorian Gonsalves as chief operating officer for over 13 years, I have every confidence that he has the necessary experience and vision to take the group into the next phase of its strategic growth across the UK.”