A strong first quarter helped Grantham-based lettings giant Belvoir increase its revenue and pre-tax profits despite the Covid-19 hitting the majority of the first half of its financial year.
The listed company has reported a revenue of £9.7m for the six months to 30 June 2020, up from £9m, says Insider Media.
Its pre-tax profits went from £2.6m to £3.1m over the same period.
Chief executive Dorian Gonsalves said: “I am delighted to report another half year of strategic and trading growth, having bought and integrated the Lovelle network and increased revenue and profitability from the underlying business.
“This is testament to the resilience of our franchise model during what has been a challenging time for our sector and the wider economy and a busy time for Belvoir.
“The reliable and recurring nature of our lettings business, which underpins 62 per cent of gross profit, was evident during H1 with lettings operating on par with 2019.
“A strong Q1 for property sales and financial services was followed by a lockdown on estate agency activity for half of Q2 during which time our franchisees focused on looking after their pipeline so as to safeguard sales post-lockdown, and our financial advisers switched to selling remortgage and income and life protection products.
“Since our sector was ‘unlocked’ in May, both property sales and financial services activities have been at record-breaking levels for the group in terms of instructions, sales agreed and written mortgages.
“These are expected to convert to sales fees and banked mortgage income during the remainder of the year.
“H2 started with further strategic progress through our alliance with The Nottingham Building Society.
“In addition to taking on their estate and lettings agency business, a number of our franchisees will also have the opportunity to offer The Nottingham members high quality estate agency services from co-branded building society branches.
“Given results are on track in H1, a promising start to H2, and a strong pipeline of agreed property sales and written mortgage business, the board is confident of meeting management’s pre-Covid expectations for the full year.
“As a reflection of the board’s confidence in the improving outlook, it was decided to reinstate our progressive dividend policy including a partial catch-up of the previously suspended final 2019 dividend.
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