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Belvoir Group battens down during coronavirus storm

Snapshot

  • Franchised lettings agency group
  • Also owns financial services business providing mortgages
  • Revenues jumped by 43%
  • Confident of weathering coronavirus storm
Belvoir Group PLC

Quick facts: Belvoir Group PLC

Price: 91 GBX

AIM:BLV
Market: AIM
Market Cap: £31.94 m
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What Belvoir does

Belvoir Group PLC (LON:BLV) is the UK’s largest property lettings franchise.

Founded in 1995, the firm currently has over 300 offices managing around 67,000 properties.

The company also operates a financial services arm which provides its customers with mortgages and other property-related financial services products.

 

How it’s doing

Belvoir Group profits in 2019 will be 'comfortably ahead' of expectations, the group said in January, after revenues surged ahead in spite of the impact of Brexit and the tenant fee ban.

Revenue at the lettings agency jumped by 43% to £19.5m with the property division achieving 6% growth.  

Income from franchisees increased by 4% to £8.8mln (2018: £8.5mln), while at the year-end Belvoir's portfolio of managed properties had risen by 7% to a new record of 67,000. 

Coronavirus

The letting agent is readying for reduced levels of property sales and mortgage transactions and a higher risk of bad debts and non-payment of rent due to coronavirus restrictions.

A range of possible downside outcomes for the rest of the calendar year and 2021 have been modelled and Belvoir says it is confident it has the resources to weather the storm and to operate within its bank covenants for the foreseeable future. 

There will no final dividend for 2019 with the group conserving cash as a precaution. 

What the boss says: Dorian Gonsalves:

“We believe that in operating a franchise model, we have both the agility and capability to emerge from the crisis in a good position to capitalise on future opportunities within the sector.”

Inflexion points

  • Profits and revenues to grow for 23rd consecutive year
  • CEO says full benefits from the financial services only just beginning
  • Tenant fee ban impact less than expected
  • Has financial strength to weather coronavirus crisis says CEO

 

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Belvoir Lettings says trading is going "pretty well"

Dorian Gonsalves, CEO of Belvoir Lettings PLC (LON:BLV) tells Proactive that trading has been in line with expectations and the “the year has gone pretty well so far”. He said the company has been working hard with its franchisees to help them mitigate the impact of the loss of tenant...

on 30/5/18

2 min read