Agency network sees business storm back and repays furlough money

3 December 2020 | Renting

Agency network sees business storm back and repays furlough money

An extremely upbeat trading statement from Stock Market-quoted agency Belvoir suggests business has been ahead of even its pre-Coronavirus expectations in the first 10 months of the year. 

The franchise network, which handles sales but mostly lettings, says gross profit in its property and financial services divisions grew year-on-year by 10 and 11 per cent respectively, with sales in particular running ahead of expectations.

“The group has continued to benefit from the prompt action taken to reduce its cost base at the start of the pandemic, such that overheads are now significantly below the original budget” the company says.

Belvoir expects that its pre-tax profit will be comfortably ahead of expectations with 62 per cent of gross profits coming from recurring revenues.

“This year has demonstrated beyond doubt the incredible resilience of our franchise business model” explains Dorian Gonsalves, the chief executive.

“I am delighted that we are in a position to be able to reimburse staff for their earlier sacrifice, to repay the government Covid subsidies and to make good the missed 2019 dividend for shareholders. 

 “2021 will present further challenges, however, we will start the year with strong sales and financial services pipelines, and we have confidence in our business model.”

Overnight, it’s been announced that Belvoir has signed up to Boomin, the new portal led by former Purplebricks chief executive Michael Bruce.

Dorian Gonsalves says of the new product: “The team at Boomin have been exceptionally pro-active in sharing their plans and vision for the future and their investment in technology. Partnering with agents is a positive step and we look forward to working with the Boomin team to help drive revenues through our franchise network.” 

This post has originally been featured in Letting Agent Today.