Property Franchise Group revenue surges as it integrates acquisitions
By Josh White
Date: Tuesday 08 Apr 2025
(Sharecast News) - The Property Franchise Group reported a 146% increase in revenue to £67.3m for the year ended 31 December on Tuesday, following a transformational period marked by the acquisitions of Belvoir Group and GPEA.
Like-for-like revenue growth, excluding the acquisitions, was 6%, with recurring revenue now representing over half of the group's income.
The AIM-traded firm said adjusted EBITDA nearly doubled to £24.1m, while adjusted profit before tax rose 99% to £22.3m.
On a like-for-like basis, profit before tax increased to £13m.
The company said it generated £14.7m in cash from operations, and declared a final dividend of 12p, bringing the full-year payout to 18p per share, up 29% on the prior year.
It said it ended the year with net debt of £9.1m, having borrowed £20m to fund the acquisitions.
The merger with Belvoir completed in March last year, and was followed by the acquisition of GPEA in May, significantly increasing TPFG's scale.
Its managed property portfolio now stood at around 153,000, up from 78,000 a year earlier.
Management service fees grew 76% to £28.3m, while financial services income surged to £19.2m from £1.5m, reflecting the contribution from Brook Financial Services.
Licensing income reached £7.2m, of which £5.2m was recurring.
The sales pipeline grew to £33.4m, and the financial services arm facilitated 23,000 mortgage transactions during the year.
TPFG said it also launched AI-driven marketing tools aimed at improving lead generation and franchisee support.
Initial cost synergies of £0.4m were realised in 2024, with further savings expected as integration progressed.
Looking ahead, the group said it was focused on completing the integration of Belvoir and GPEA and delivering on anticipated synergies.
The board said it was confident in the group's ability to manage changing legislative conditions in 2025, adding that it believed the strength of its franchise model and diversified income base provided a robust platform for continued growth.
"I am delighted to be reporting another set of record financial results in what has been a truly transformational year for the group," said chief executive officer Gareth Samples.
"The period under review has seen us successfully deliver two substantial acquisitions and make headway in realising the resultant synergies whilst concurrently delivering strong organic growth and executing against our strategy."
Samples said the Property Franchise Group had a track record of growth, adding that with its increased scale and capability, it was now a "significantly stronger" business, able to offer greater value and growth potential.
"I am incredibly excited for what lies ahead, with a clear strategy and an exceptional team in place to realise the full potential of the enlarged group."
At 0821 BST, shares in the Property Franchise Group were up 2.22% at 414.5p.
Reporting by Josh White for Sharecast.com.
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