Belvoir Lettings PLC Assisted Acquisitions Update (7723A)
January 03 2018 - 2:00AM
UK Regulatory
TIDMBLV
RNS Number : 7723A
Belvoir Lettings PLC
03 January 2018
For Immediate Release 3 January 2018
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
BELVOIR LETTINGS PLC
(the 'Group' or 'Belvoir')
Assisted Acquisitions Update
Belvoir lettings plc (AIM:BLV), the UK's largest property
franchise, is pleased to report that it exceeded its 2017 target
for portfolio acquisitions by its franchisees ('Assisted
Acquisitions'), a core part of Belvoir's growth strategy.
During 2017, franchisees completed on 23 transactions under the
Belvoir Assisted Acquisitions programme increasing the annualised
network revenue by over GBP3.3 million and exceeding the GBP3.0
million target set by the Board. These acquisitions have added an
ongoing GBP350,000 p.a. of recurring Management Service Fees (MSF),
the main revenue stream to the Group, and 2,264 managed properties,
increasing the portfolio by 4%. The Belvoir Group now represents
over 58,000 managed properties.
Following the acquisition of Northwood in June 2016, over half
of the Northwood franchisees have registered onto the Assisted
Acquisitions programme, a service that had not been available to
them under the previous ownership. Of the 23 deals completed in
2017, 14 were from the Northwood network, one from Newton Fallowell
and the remaining eight from Belvoir. The Group contributed
GBP351,000, approximately 10% of the total consideration, by means
of loans to support these transactions. Whilst the Group is willing
to advance up to 30% of the deal value, most franchisees utilised
their own cash reserves or sourced funds from other loan
providers.
Dorian Gonsalves, CEO of Belvoir, commented;
"The Assisted Acquisitions programme has proved to be very
popular within the recently acquired Newton Fallowell and Northwood
networks. Of the deals completed in 2017, over two-thirds were
undertaken by these networks, who had not previously benefitted
from the expertise and financial support that has been available to
the Belvoir network for several years.
In addition to exceeding our target completions for 2017, we
ended the year with a very robust pipeline of deals currently with
lawyers which we would expect to complete in the first quarter of
2018. The appetite for securing portfolio acquisitions reflects the
entrepreneurial spirit of our franchisees who are adapting to
changes within the sector and seeing opportunity for growth as the
sector consolidates."
For further details:
Belvoir Lettings PLC 01476 584900
Dorian Gonsalves, Chief Executive Officer investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Phil Davies, Will Goode 0207 894 7000
Buchanan
Charles Ryland, Vicky Hayns, Madeleine Seacombe 0207 466 5000
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 300 offices
across four brands offering a range of specialist services in
property rental, property management, residential lettings, buy to
let and property sales. With its Central Office in Grantham,
Lincolnshire, the Group manages over 58,000 properties and reported
revenue of GBP9.9m in 2016 making Belvoir the largest property
franchise group in the UK.
This information is provided by RNS
The company news service from the London Stock Exchange
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