Belvoir Group PLC (LON:BLV) lifted profits for a record 23rd year in 2019, but said it expects severe disruption in the current year due to the shutting down of the UK housing market.

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. 

Belvoir said it is helping franchisees access the various government financial support packages and has also put in place its own financial support measures.

“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,” Dorian Gonsalves, chief executive said in a statement.

Results for 2019 showed Belvoir's revenues rose by 43% to £19.3mln with a 4% rise in franchise fees and a 14% increase in pre-tax profits to £5.6mln excluding an exceptional gain in the previous year.

Cash at the December year-end was £3.6mln and net debt was £6.9mln.