Franchise giant on the prowl for more lettings acquisitions

A trading statement from Belvoir reveals that the franchise giant is on the look out for “good quality complimentary acquisitions”.

A strong performance by its lettings business so far this year has kept the company on track to meet 2023 forecasts despite a slowdown on the sales side.

Management services fees from its over franchised operations were up five per cent in the first quarter of this year compared with the same period of 2022 while specifically lettings fees are seven per cent ahead. 

Rents on new tenancies have risen by 9.9 per cent on average, while eight of its franchisees have acquired a local competitor with its assistance. Commission fees from sales dropped by four per cent - less severe that the national picture of a 15 per cent drop in the first quarter, the company points out to shareholders.

Gross profit from the financial services division in the first four months increased by eight per cent helped by The TIME Group acquisition a year ago, which offset a 12 per cent drop in the underlying financial services business following the mini-Budget chaos.

Dorian Gonsalves, chief executive, commented that it has been a "resilient performance" so far in 2023 and notes that mortgage approvals and house prices are starting to pick up again, albeit at a modest pace.