The Property Franchise Group acquires GPEA and associated companies

Lettings and estate agency The Property Franchise Group has acquired GPEA and its associated companies, trading as The Guild of Property Professionals and Fine & Country, for a total consideration of approximately £20.0m.

The Property Franchise Group said on Monday that the consideration was split, with £15.0m payable in cash on completion and £5.0m payable on the first anniversary of completion. The total consideration represents approximately 5.7x FY23 audited underlying earnings.

The AIM-listed group stated the Guild and Fine & Country provide services to a total of 1,036 outlets and produced audited revenues of £13.2m, audited underlying earnings of £3.5m and a pre-tax profit of £3.3m in 2023. 73% of FY23 revenues were from recurring memberships and licences.

TPFG added that it will also see post-acquisition leverage below 1x FY23 pro forma adjusted EBITDA, with the addition of GPEA expected to be immediately earnings enhancing.

Chief executive Gareth Samples said: "The acquisition continues to deliver on our wider strategy of delivering breadth and depth to our network. It further enhances TPFG's recurring revenue streams, adds the additional dimension of licensing to its platform and one significant complementary service, printed marketing materials. I am really excited about working alongside Iain McKenzie and the team to continue the growth across the group and providing additional benefits to our network."

As of 1050 BST, Property Franchise shares were up 7.37% at 434.86p.

Reporting by Iain Gilbert at Sharecast.com