Growth continues at Belvoir Lettings

Property franchise group Belvoir Lettings announced on Thursday that it had secured further growth and an increase in the number of properties it has under management following 12 franchisee-led acquisitions during 2017 across the country.

The AIM-traded company said that, following a series of acquisition roadshows to franchisees earlier this year, the group strategy of growth through its assisted acquisitions programme - already familiar to the Belvoir network - had now been “embraced” by franchisees from the recently acquired networks.

Of the 12 acquisitions, six were secured by Belvoir, five by Northwood, and a further one by Newton Fallowell.

The company said the acquisitions, which are in London, Epsom, East Horsley, Newbury, Trowbridge, Hereford, Telford, Hinkley, Lincoln, Bolton and Oldham, increased network revenue by £1.73m at a total deal cost of £2.12m.

Together, the acquisitions would reportedly increase management service fees, which are Belvoir's main revenue stream from its franchisees, by £0.19m in a full year and £0.01m in the current financial year.

Interest receivable from the part funding under the assisted acquisitions programme was another source of income for the group.

With Belvoir having contributed £0.32m of the funding required, the group said it would receive a further £29,000 per annum in interest.

Belvoir said it now represented 57,637 properties under management, following the addition of 1,310 from these latest acquisitions.

“I am delighted that our networks have been very active, supported strongly by available financing and resource from our central office operations,” said CEO Dorian Gonsalves.

“The assisted acquisition programme has contributed significantly to Belvoir's continued growth over recent years and we now expect to exceed the additional network revenue from acquisitions set by the board for 2017.”

Gonsalves said the company had further such deals currently with lawyers and other opportunities under review, with the aim of enabling franchisees to benefit from consolidation in the sector.

“Belvoir is here to support our franchisees entrepreneurial growth ambitions, which will benefit the group and our shareholders alike.”