Resilient business model is key to agency group’s ongoing success

The apparent rise and rise of Belvoir Group is down to its resilient business model and the entrepreneurs who run its franchises.

That’s the view of Dorian Gonsalves, Belvoir’s chief executive, who says in his firm’s latest trading statement: “The outperformance of our business model continues to reflect the entrepreneurial nature of our franchisees and self-employed financial services advisers, who remain entirely focused on maximising the opportunities presented in all market conditions. 

“With 58 per cent of their revenue derived from a strong recurring lettings market, our property franchisees have been able to offset the impact of the reduction in UK housing transactions. 

“Meanwhile our financial advisers are mitigating the lower level of new purchase mortgages by servicing demand for remortgages and other related products from their substantial client banks.

“Our resilient business model and our proven growth strategy underpin the ongoing success of the Group’s performance and consequently, the Board confirms that the Group is trading comfortably in line with management's expectations for the year ending 31 December 2023.”

His comments accompany figures showing that In the six months to June 30 revenue increased by three per cent from a year earlier, despite “more challenging market conditions” with a four per cent rise in 

Management Service Fees - the main revenue stream from franchisees.

There was also a bumper eight per cent rise in lettings income, compensating for a nine per cent slump in sales revenue.

Gross profit was split 58 per cent lettings: 15 per cent sales: 21 per cent financial services: and six per cent other.

A strong performance achieved from Belvoir’s successful franchise model, despite continuing challenging market conditions

Operational highlights of the first half of the year included the acquisition of BMA Bristol Ltd, a financial services business comprising 21 self-employed advisers and a lead-generating website; the franchising out of the Nicholas Humphreys Derby agency to the branch manager; and 13 franchisee assisted acquisitions.