Franchised residential lettings agency Belvoir Lettings is paying a maiden interim dividend of 2.9p a share.
Revenues grew 17% to £1.83m in the six months to June 2012, helped by additional initial franchise fees. Belvoir receives 12% of the revenues of its franchisees. These fees grew from £1.23m to £1.35m. The rest of the revenues come from Belvoir’s own business.
Stripping out the costs of the flotation in February this year, pre-tax profit improved from £840,000 to £863,000. Net cash was £1.74m at the end of June 2012.
Three-fifths of the 3m private rental properties are handled by agents and this is expected to grow.
There were 144 franchised offices at the end of June and there are four more locations in the pipeline. Since the end of June, Belvoir has acquired a lettings agency in Pimlico and it also bought existing franchises in Burton on Trent and Lichfield. This takes the number of company-owned sites to four.
The focus for growth is the South East but there are still plenty of potential new franchise areas around the UK. There are potentially more than 500 franchises required to cover the whole country.
At 83.5p a share, Belvoir is valued at £17.3m.
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