The Property Franchise Group upbeat after 'transformational' 2024
By Josh White
Date: Thursday 30 Jan 2025
(Sharecast News) - The Property Franchise Group reported a transformational 2024 on Thursday, with revenue rising 146% to £67.2m, driven by organic growth and the acquisitions of Belvoir Group and GPEA.
Recurring revenue accounted for 52% of total income, while management service fees (MSF) increased 76% to £28.3m.
The AIM-traded firm said financial services commissions grew to £19.2m, significantly up from £1.5m in 2023, with the newly-acquired licensing division contributing £7.2m in revenue.
It noted that the acquisitions were funded by £20m in borrowing, resulting in a net debt position of £9.1m at year-end.
The franchising division, now operating 15 brands, managed 153,000 rental properties and completed over 30,000 sales in 2024, making it the UK's largest property franchise business.
Lettings MSF grew 93% to £19m, reflecting the increased scale of the business and higher rental prices, particularly outside London.
Sales MSF increased 48% to £9.3m, with activity picking up in the second half of the year as lower financing costs boosted transaction volumes.
On a like-for-like basis, MSF grew 11%, indicating sustained organic growth.
The hybrid agency brand Ewemove continued to expand, with 39 new territories sold and total revenue increasing by 17%.
TPFG said its financial services division was transformed by the addition of Brook Financial Services, which facilitated over 23,000 mortgages worth £4bn during the year.
Improved mortgage affordability in the second half supported a strong performance, while recurring revenue from fixed-term mortgage renewals contributed £1.4m since the acquisition.
The newly-acquired licensing division, which includes Fine & Country and the Guild of Property Professionals, generated £7.2m in revenue since its acquisition in June.
Fine & Country added 17 new UK licensees and expanded internationally with new offices in Barbados, Ireland, and Dubai.
Looking ahead, TPFG said it expected continued growth in 2025, with further integration of Belvoir and GPEA unlocking cost synergies and additional revenue opportunities.
The lettings business was expected to benefit from the upcoming Renters Reform Bill, which could drive more landlords towards fully-managed property services.
It said its financial services division had meanwhile seen strong demand in early 2025, supported by a 71% increase in the sales pipeline to £39.4m and improved mortgage affordability.
With a diversified revenue base and a resilient franchise model, the company said it remained confident in delivering further growth in 2025.
"I am immensely proud of what the group achieved in 2024, with the delivery of two major acquisitions, now integrated into the group, as well as strong organic growth," said chief executive officer Gareth Samples.
"Our success has culminated in yet another record-breaking financial performance which has redefined the scale of our business and set us up for ongoing success."
"2025 has started with strong momentum and we look forward to the continued synergies from the two transformative deals, with Belvoir and GPEA, and other strategic projects initiated in the year coming to fruition in 2025, unlocking the full potential of the combined group as it looks to its next phase of growth."
At 1611 GMT, shares in the Property Franchise Group were up 1.35% at 415.52p.
Reporting by Josh White for Sharecast.com.
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