Business
Half Year Trading Update and Directorate Update
Half Year Trading Update and Directorate Update.
About this update from Property Franchise Group Plc
[{"type":"text","content":"\n \nRNS Number : 3266H Property Franchise Group PLC (The) 31 July 2019 \n\n31 July 2019\nTHE PROPERTY FRANCHISE GROUP PLC\n(\"TPFG\", the \"Company\" or the \"Group\")\n \nHalf Year Trading Update\nand\nDirectorate Update \n \nThe Property Franchise Group PLC (AIM:TPFG) today issues the following trading update ahead of publishing its interim results on Tuesday, 10 September 2019. \n \nThe Group's traditional high street brands continued to make solid progress, generating growth in revenues of 3% over the same period in 2018. This progress was driven by improvements in lettings, and has been delivered despite the reduced activity levels in the sales market. Pleasingly, its online brand, EweMove, generated growth in revenues of 11%.\n \nThe Group's total revenue for the six-month period was £5.5m, of which Management Service Fees were £4.6m, a Group record for first half year trading (2018: £4.4 million). Management Service Fees represent the Group's key, recurring revenue stream and this growth demonstrates the strength of the franchise model. Total tenanted managed properties served rose 6% to c. 56,000. \n \nThe Company continues to generate free cash and maintain a strong balance sheet, with net cash of £2.8m at 30 June 2019 (30 June 2018: £0.5m).\n \nThe Board is confident that trading will continue to be in line with market expectations for the full financial year ending 31 December 2019. \n \nDirectorate Update\nAfter 16 years with the business, Ian Wilson, Chief Executive, has informed the Board of his intention to retire at the end of calendar year 2020. The Board has commenced a formal process to identify a suitably qualified successor. The timescales agreed will allow ample time for both this process and a smooth, orderly handover period.\nOver the next 17 months Ian will continue to lead the Group towards its aim of achieving an increased UK market share of lettings and estate agency transactions, using its proven franchise model and multiple clearly differentiated property brands.\n \nChief Executive Ian Wilson commented,\n \n\"We are pleased to continue to deliver revenue growth across both our high street brands and also our online brand, EweMove, in what has been a tough market. Although we have yet to see the full impact of the tenant fee ban which came int...