Full Year Results for Belvoir’s operating business
Belvoir Lettings PLC (AIM: BLV), one of the UK's largest lettings franchises which recently listed on AIM, is pleased to announce full year results for the financial year ended 31 December 2011 of its principal operating subsidiary and its former holding company.
As part of Belvoir’s IPO process, the Belvoir group underwent a reconstruction whereby Belvoir, a newly incorporated entity, became the new group holding company with effect from 16 February 2012. This statement contains extracts from the audited financial statements of Belvoir Property Management (UK) Limited (“BPML”), the sole Belvoir group operating subsidiary, for the period to 31 December 2011. In addition, the unaudited management accounts of Kilima Holdings Limited (“Kilima”) are included as an appendix. Kilima was the relevant holding company for BPML prior to reorganisation ahead of the Company’s IPO. As part of the IPO group reconstruction process, Kilima underwent a solvent liquidation and has therefore ceased trading.
- Successful IPO on AIM on 19 February 2012 raising £6.3m net of expenses
- As part of the flotation, the Belvoir group underwent a reconstruction whereby Belvoir, a newly incorporated entity, became the new group holding company with effect from 16 February 2012
- These results comprise the unaudited results of Kilima, the former group holding company, and extracts from the audited results of BPML, the sole Belvoir group operating subsidiary, in each case for the period to 31 December 2011
- All 2011 performance targets were either met or exceeded
- 142 franchise outlets at 31 December 2011 (2010: 136)
- Revenue of £3.35m (2010: £3.26m)
- Excluding an exceptional charge relating to the costs of the Belvoir group’s Admission to AIM and a £63k share based payment charge, BPML’s operating profit as a percentage of turnover increased by 7% to 55% driven by an increase in MSF income and strong cost control by management
- Cash generated from operations in Kilima before flotation costs was £1.99m (2010: £1.63m)
- Appointment of a new senior manager to strengthen and accelerate franchise recruitment
- Rental market continued to grow with an estimated 3 million private rented properties in England, representing 14% of all households
- Some 60% of private rental properties are believed to be owned by landlords who use lettings agents. Management expect this percentage to grow further
Current Trading and Outlook
Following Belvoir’s successful IPO in February we have been pleased with our progress and we are in line with achieving our objectives for the year, supported by favourable market conditions. The rental market has continued to grow and we are encouraged by the opportunities that are available. In particular the buy to let market continues to gather pace and tenant demand remains strong.
In line with our stated strategy of growing the business further, we are due to expand from our 142 offices that are currently in operation by opening another three in the near future in Chelsea, Leeds South and Evesham and our pipeline has further opportunities ongoing.
Also to expand our network further, since the IPO 3 of our franchisees have acquired competing agencies in St Helens, Wellingborough and Tunbridge Wells.
We look to forward to updating shareholders as we continue to develop the Belvoir brand.
Commenting on the results, Dorian Gonsalves, Managing Director, said:
“Belvoir lettings delivered a strong financial performance last year. During the period we grew the franchise business from 136 to 142 franchise outlets. Belvoir’s debut on the AIM market of the London Stock Exchange in February this year will allow us to continue to expand the brand’s national reach and strong market presence in the UK residential lettings market as we remain committed to providing a professional and personal service designed to exceed the expectations of landlords and tenants.”
For further details:
Belvoir Lettings PLC - 01476 584900
Dorian Gonsalves, Managing Director
Carl Chadwick, Finance Director
Seymour Pierce - 020 7107 8000
Guy Peters or Sarah Jacobs, Corporate Finance
Jeremy Stephenson or Katie Ratner, Corporate Broking
Buchanan - 0207 466 5000
Charles Ryland, Suzanne Brocks, Catherine Breen