Acquisitions and diversification strengthen property group’s foundations
Acquisitions and diversification has helped property group Belvoir “mitigate the correction” in property sales over recent months.
The Lincolnshire-based group increased revenues by 12% to £15.4m, boosted by a 20% increase in financial services revenue, which now accounts for half of the business.
Pre-tax profits fell by 16%, to £4.0m, in the six months to June. This was caused by a jump in administrative costs and a shift in the sales mix towards financial services, where commission payments affect the margin achieved.
Belvoir operates a nationwide property franchise group with 473 offices across seven brands, including Northwood, Newton Fallowell and Nicholas Humphreys. It specialises in residential lettings, property management, residential sales and property-related financial services.
Dorian Gonsalves, chief executive of Belvoir Group, said: “I am delighted to report that our strong lettings base, investment in further franchise networks and diversification into financial services have all helped to mitigate the correction in the level of property sales transactions after the exceptional year for the housing market in 2021.
“During the first half of 2022 the Board continued to pursue its growth strategy to strengthen the group’s service offering.”
It acquired mortgage advisory business The TIME Group in May for £3.8m, as well as the concierge-style personal estate agency Mr and Mrs Clarke in March.
Gonsalves added: “The group’s investment in businesses to expand both the property and the financial services divisions, and the strong pipelines of house sales and related mortgages at the start of H2, underpin the board’s confidence of achieving managements’ expectations for the full financial year.”