29 May 2018 – AGM trading update

A trading update has been released, coinciding with the company’s Annual General Meeting.  Trading has been in line with expectations during the first four months of the financial year.  There has been increased revenue from the three key income streams of residential lettings, property sales and financial services.  The growth strategy of acquisition and diversification at both the corporate and the franchisee level continues.  Franchisees across the three brands have completed on ten portfolio transactions under the Assisted Acquisitions programme.  This has added around £3.2m network revenue, nearly 2,500 managed properties and £0.3m per annum of recurring Management Service Fees.  Brook Financial Services, which was acquired last year, has been performing well.  Four new franchise owners having been recruited in the year to date.  One has taken on the previously corporate-owned Belvoir Spalding, another is acquiring an existing Belvoir office and two are opening in new territories, one Belvoir and one Newton Fallowell.  The three new franchise owners are each in the process of acquiring a local lettings portfolio.  This is reassuring news and we continue to believe the shares are cheap, making them a BUY.