It’s been a difficult first half of 2020 for almost every agency business but Belvoir appears to have emerged healthier than most according to its latest trading statement.
In the six months to the end of June – during which it acquired the 17-branch Lovelle agency network – Belvoir saw revenue rise eight per cent to £9.774m.
There was also an eight per cent rise in gross profit to £6.72m and a 17 per cent increase in pre-tax profit to £3.16m, some of which came from the Lovelle acquisition.
Management Service Fees held up well at £4.16m, just a one per cent drop from the previous year, and Financial Services revenue rose seven per cent to £4.25m.
The company took £250,000 of government support because of the Coronavirus crisis and the brand says its first year results are in line with expectations set before the virus broke out.
Dorian Gonsalves, Belvoir’s chief executive, says the strong results are testimony to the franchise business model’s resilience.
“The reliable and recurring nature of our lettings business, which underpins 62 per cent of gross profit, was evident during H1 with lettings operating on par with 2019. A strong Q1 for property sales and financial services was followed by a lockdown on estate agency activity for half of Q2 during which time our franchisees focused on looking after their pipeline so as to safeguard sales post-lockdown, and our financial advisers switched to selling remortgage and income and life protection products” he says.
“Since our sector was ‘unlocked’ in May, both property sales and financial services activities have been at record-breaking levels for the group in terms of instructions, sales agreed and written mortgages. These are expected to convert to sales fees and banked mortgage income during the remainder of the year.
“H2 started with further strategic progress through our alliance with The Nottingham Building Society. In addition to taking on their estate and lettings agency business, a number of our franchisees will also have the opportunity to offer The Nottingham members high quality estate agency services from co-branded building society branches.”
This post has originally been featured in Letting Agent Today.