For the six months to 30 June, the property franchise group generated a 23% rise in adjusted pre-tax profits to around £3mln, while revenues were up 48% at £9mln.
Financial services revenues tripled to £3.9mln, boosted by the acquisition of mortgage broker MAB (Gloucester) in November last year.
The core property franchise division lifted management service fees 5% to £4.2mln.
The firm’s interim dividend was maintained at 3.4p per share.
On target for full year
Looking ahead, chief executive Dorian Gonsalves said the group had made a “promising start” to its second half and was trading in line with management expectations for the full year.
“Trading across lettings, sales and financial services continue to outperform their respective markets and deliver strong results”, he added.
Gonsalves told Proactive that the growth in the group’s results showed that its franchisees were “not only surviving but thriving” despite fears of a downturn in the property market.
The CEO said that if the property sales market began to shrink, rental activity among its lettings agents was likely to increase due to a reduced number of buyers and higher numbers of “accidental landlords”, property owners that hold off and selling and decide to rent while waiting for prices to improve.
“We’re holding all the cards in terms of the rental stock”, Gonsalves said, with the company having around 64,500 properties under management.
Franchise model “maximises potential”
In a note, analysts at Belvoir’s house broker finnCap reiterated their 190p target price on the firm, saying its franchise model “maximises entrepreneurial potential, flexibility and cash flow while minimising risk”.
The broker added that with the UK residential property market undergoing structural change alongside ongoing economic uncertainty, Belvoir had “significant potential” to gain market share, evidenced by the results.
Investors appeared to agree, with the shares jumping 6% to 117p in early trading on Tuesday.