Intention to list on the market
BELVOIR LETTINGS PLC (the "Company" or "Belvoir!")
Intention to list on the AIM Market of the London Stock Exchange
Belvoir Lettings PLC, one of the UK`s largest lettings franchises, today announces its intention to seek admission (“Admission”) to trading on the AIM market of the London Stock Exchange plc (“AIM”) and to raise approximately £6.0m - £8.0m (including £3.0m of new money) via a placing of new and existing ordinary shares (the “Placing”). Seymour Pierce is acting as Nominated Adviser and Broker to Belvoir.
- Belvoir is one of the UK’s largest specialist residential lettings businesses. It is an award winning franchised lettings agency business. Belvoir and all its franchisee businesses (the “Belvoir Network”) have 142 franchised offices operating across the UK and a Company owned office in Grantham.
- The Belvoir brand, which has national reach and a strong market presence, is based on providing a professional and personal service designed to exceed the expectations of landlords and tenants. The franchisee recruitment process is lengthy and rigorous and all franchisees are required to be members of NALS (National Approved Lettings Scheme).
- The UK lettings market is in a steady growth phase which is predicted to continue for many years. There are an estimated 3.0 million privately rented properties in England, accounting for almost 14 per cent. of all households in England. This represents an increase of nearly 40 per cent. on the corresponding figure 10 years ago.
- Belvoir has delivered consistent growth since its inception in 1995. The combined Belvoir Network fee turnover was approximately £20 million in the year ended 31 December 2010, more than double the £8.7m figure for the year ended 31 December 2005. The Belvoir group has been consistently profitable over the last 5 years.
- There is considerable potential for geographic expansion of the Belvoir Network. Belvoir intends to grow the number of franchisees from its current 142 franchised offices to over 200 franchised offices by 2016.
- As a profitable and highly cash generative business, Belvoir has historically paid dividends and intends to continue to do so following Admission. The Directors intend to pursue a progressive dividend policy providing an attractive yield to shareholders.
- The net proceeds of the Placing are intended to fund the expansion of the Belvoir Network through appointing franchisees in new territories; providing additional support to grow the businesses of franchisees; and to establish a number of further Belvoir owned outlets.
Commenting on the Placing, Mike Goddard, Chairman, said:
“The UK lettings industry has displayed steady growth through a difficult economic time and Belvoir has been at the forefront of this growth. It is one of the UK`s largest lettings franchises and has remained consistently profitable over the last 5 years.
“We believe an AIM listing is the best means to continue building on this momentum by increasing public awareness of the Belvoir brand and recognition of the Group, as well as raising the profile of the Group with its Franchisees and their customers. The funds raised from the Placing will enable us to meet our ambitious UK geographic expansion plans to increase our national reach and strong market presence. At the same time, the Directors intend to pursue a progressive dividend policy, providing an attractive yield to shareholders.”
For further details:
Charles Ryland, Suzanne Brocks, Catherine Breen
0207 466 5000
Belvoir Lettings PLC
Mike Goddard, Chairman
Dorian Gonsalves, Managing Director
Guy Peters or Sarah Jacobs, Corporate Finance
Jeremy Stephenson or Katie Ratner, Corporate Broking
020 7107 8000