Property franchise firm sees profits rise by 11 per cent

The country largest property franchise firm saw its profits increase by 11 per cent to over £4m last year.

The Bournemouth based  Property Franchise Group announced its interim results for the last 12 months.

Group revenue increased to £13.2m and management service fees increased by three per cent to £7.7m.

As a result profit before tax increased by 11 per cent to £4.2m.

The firm now manages 77,000 rental properties and made seven acquisitions at franchise level in the first half of the year.

The acquisition of Michael Searchers Property Management in January  for £250,000 added 147 managed properties to the owned offices portfolio and £200,000 in annual lettings revenue.

Gareth Samples, chief executive of The Property Franchise Group, said: “It’s another period of record revenue for us, outperforming the market in both lettings and sales. Moreover, with continued focus on costs, slightly down despite the pay increases needed by our employees, we have also set another record for profit before tax.

“This year more than any other under my tenure demonstrates the strength of our franchise business model and the power that results from a network of entrepreneurial franchisees seeking to maximise the opportunities in their local marketplaces.

“Overall, our network’s lettings revenues have grown 12 per cent to represent 61 per cent of total network revenue, offsetting the expected impact of the reduction in UK sales transactions. Pleasingly, this has driven up our recurring revenues to 65 per cent of total revenue.

“We remain extremely well-placed in the current environment and have a substantial growth opportunity to capitalise on. Part of that will come in the form of improved data usage which we are very excited about as we progress towards meaningful implementation in 2024.

“The second half of each calendar year usually generates higher revenues and profits. The second half to date appears to be following that trend so far. As a result, the Board remains confident that trading remains in-line with expectations for the full year.”