Successful Sale of Burton Corporate Owned Office

RNS Number : 6681Y

Belvoir Lettings PLC

07 March 2017

 

For Immediate Release                                                                                              7 March 2017

BELVOIR LETTINGS PLC

(the "Group" or "Belvoir") 

Successful Sale of Burton Corporate Owned Office to a Belvoir Franchisee

Belvoir Lettings plc (AIM: BLV), the UK's largest property franchise, is pleased to announce the sale of its Burton corporate owned office to an adjacent Belvoir franchisee which operates in Hinkley, Nuneaton and Tamworth.

This sale is in line with Belvoir's strategy, as announced on 23 January 2017, of implementing a franchise solution for most of its remaining six corporate-owned offices, to enable the Group to further focus its resources on its franchise business. This strategy is perceived by the Board as an opportunity to bring fresh impetus to its corporate owned offices which once sold, will fall within the remit of the Group's franchise support team and systems. Out of a total network of 302 offices nationwide, Belvoir now has only five corporate offices. The Group intends to retain the two corporate Belvoir and Newton Fallowell offices in Grantham for system development purposes and aims to complete a further disposal next month. 

The Group continues to focus on driving organic growth via supporting franchisee-led acquisitions and increasing the footprint of existing franchisees within their own territories. Hereford is the most recent franchisee to have completed a further portfolio acquisition. Significant internal resource is dedicated to supporting the Group's franchisees via an in-house team, responsible for researching and expediting franchisee acquisitions.

Mike Goddard, Chairman and CEO of Belvoir commented:

"We are delighted that we are making progress on both our strategy to support franchisee-led acquisitions and to divest the Group of its corporately owned offices. Our franchisees have fantastic local knowledge and the drive and determination to succeed, and we are pleased to be transferring ownership of the Belvoir Burton office to one of our ambitious franchisees. We are passionate about franchising and are constantly looking for ways to progress the business and continue to grow our franchised network."

For further details:

Belvoir Lettings PLC Mike Goddard, Executive Chairman and CEO Louise George, Chief Financial Officer	01476 584900 [e-mail]
Cantor Fitzgerald Europe Rick Thompson, Phil Davies, Will Goode, Michael Reynolds Corporate Finance	0207 894 7000
Buchanan Charles Ryland, Victoria Hayns, Madeleine Seacombe	0207 466 5000

Note to Editors:

About Belvoir Lettings PLC

Founded in 1995, Belvoir is the UK's largest property franchise group, with 302 outlets nationwide. Since listing on AIM in February 2012 (BLV.L), Belvoir has continued to diversify its core business offer in lettings by broadening into property sales. Operating from its Central Office in Grantham, Lincolnshire, the Group now offers a range of specialist services in property rental, property management, residential lettings, buy to let and property sales.

Belvoir's core revenue is derived from Management Service Fees (MSF); a reliable recurring revenue model which allows the Group to offer franchisees significant support and advice.

In 2015 Belvoir launched its multi-brand franchising strategy; acquiring Newton Fallowell Ltd, an East Midlands-based network of 30 outlets in July 2015 and Goodchilds Estate Agents and Lettings Limited, a West Midlands-based network of 14 outlets in October 2015. In June 2016 Belvoir acquired Northwood, a network of 86 residential lettings and property sales agents operating across the UK, making Belvoir the largest property franchise group in the UK.

Belvoir continues to grow organically by delivering award winning service, prioritising franchisee recruitment and supporting franchisee acquisitions. In recognition, Belvoir was awarded the "Best Lettings Agency Franchise Award" at the 2016 Agency of the Year Awards for the sixth time since the awards started seven years ago.

The Company remains committed to diversifying its brand portfolio, utilising the Group's strong franchising expertise and infrastructure, in order to capitalise on a consolidating market.

 

END

 

 

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