Lettings fees give agency remarkable 26 years of profit growth

Belvoir has released another set of upbeat financial figures marking 26 successive years of profit growth.

Group revenue increased 14 per cent to £33.7m; franchise fees grew two per cent to £11m; and although pre-tax profit was down two per cent at £9.1 per cent the figure after tax was marginally ahead - allowing the company to make its 26 year claim.

Belvoir’s concentration on lettings is reflected in a gross profit ratio of 56 per cent lettings, 16 per cent sales, 23 per cent financial services and five per cent other.

Operational highlights for the past year include the acquisition of small agency Mr and Mrs Clarke, and the acquisition of The TIME Group, a network of 63 financial services advisers.

Chief executive Dorian Gonsalves says: “2022 was a much stronger year for the property market than many analysts had forecast. 

“However, the mini budget in September crystallised the general pressure on interest rates and created significant uncertainty in the financial markets, which in turn impacted on sales instructions and mortgage applications in Q4 of 2022. 

“Whilst we have seen a bounce-back in our mortgage activity for the year to date, up around 20 per cent on Q4 2022, with house transactions taking up to five months to complete from agreeing a purchase, the increased market activity so far in Q1 will take until H2 to flow through to our financial performance.

"The entrepreneurial character of our franchisees and financial services advisers means that they strive to make the most of the opportunities presented in all market conditions. 

“Our property franchisees benefit from the strong recurring lettings fees earned from their managed property portfolios, and our financial advisers are able to draw on their extensive bank of clients who are looking to remortgage.

“Despite challenging market conditions, we remain confident that the resilience and diversity of our business model and multi-brand strategy will enable the Group to perform well against the market as a whole during 2023 and beyond.”