LONDON (ShareCast) - (Sharecast News) - The Property Franchise Group (TPFG) reported robust growth across all of its divisions in the first half on Monday, driven by higher sales and lettings activity, strong mortgage demand, and increased licensing revenue.
It said it remained on track to meet full-year market expectations.

For the six months ended 30 June, group revenue rose 50% year-on-year to £40.3m, including 8% growth on a like-for-like basis.

Franchising revenue increased 22% to £21.8m, supported by lettings revenue of £10.4m and a 28% increase in sales revenue to £5m, reflecting a strong sales market, particularly in the first quarter ahead of stamp duty changes in March.

Financial services revenue jumped 54% to £12.2m, as mortgage volumes grew to 13,000 from 7,700 a year earlier.

On a pro forma basis, revenue in the division rose 14%, helped by falling interest rates and increased transaction volumes.

Licensing revenue increased fivefold to £6.3m, driven by the expansion of Fine & Country to 304 licensees, and by acquisition-related growth.

TPFG said it generated £15.2m in cash during the period, ending with net debt of £10.8m.

Deferred consideration for the GPEA acquisition was reduced to £3.75m following an amendment to the sale agreement, resulting in a £1.25m exceptional gain expected to be recognised in the full-year results.

Looking ahead, the AIM-traded group said it was focused on leveraging its scale to generate further income growth, with a £43.5m sales pipeline and the rollout of its lettings-focused Privilege programme well underway.]

It also expected to benefit from additional interest rate cuts and plans to launch AI-based initiatives in the second half.

"I am delighted that the group has continued to deliver a strong performance across all three divisions in the first half," said CEO Gareth Samples.

"With the significant growth and step change achieved in 2024, post acquisitions, we continue to deliver the anticipated synergies whilst leveraging our enhanced scale and capabilities to deliver greater value to our franchisees and members.

"Our resilient franchise business model, diversified revenue streams and continued strong cash generation provide the board with confidence for the year ahead."

TPFG said it would publish its interim results on 10 September.

At 1134 BST, shares in the Property Franchise Group were up 1.49% at 544p.

Reporting by Josh White for Sharecast.com.

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