Business
Pre-Close Trading Update and Notice of Results
Pre-Close Trading Update and Notice of Results.
About this update from Property Franchise Group Plc
[{"type":"text","content":"\n \n \n \n \n \n 31 January 2023\n \n \n \n \n \n \n \n THE PROPERTY FRANCHISE GROUP PLC\n \n \n (\"TPFG\", the \"Company\" or the \"Group\")\n \n \n \n \n \n \n Pre-Close Trading Update and Notice of Preliminary Results\n \n \n \n \n \n \n \n \n \n Profit anticipated to be ahead of market expectations\n \n \n \n \n \n \n The Property Franchise Group PLC, the UK's largest property franchisor, is pleased to provide a trading update for\n the year ended 31 December 2022.\n \n \n \n \n \n The Group achieved a strong performance in 2022 through organic growth in lettings and the full impact of the acquisition of Hunters Property PLC (\"Hunters\") in March 2021. Revenue and Management Service Fees increased significantly against the economic backdrop and expected reduction in house sales transactions. As a result, profit is now anticipated to be ahead of market expectations.\n \n \n \n \n \n \n Highlights\n \n \n \n \n \n \n ·\n Group revenue increased 13% to £27.1m (2021: £24.1m)2\n \n \n o \n 7% like for like increase on 2021 to £14.9m1\n \n \n ·\n Management Service Fees (\"royalties\") increased 8% to £15.9 m (2021: £14.7m)\n \n \n o \n 5% like for like increase on 2021 to £11.8m1\n \n \n ·\n EweMove sold 44 new territories (2021: 58) taking the total number under contract to 189\n \n \n ·\n Sales agreed pipeline remained strong at £22.2m at 31 December 2022 (2021: £26.5m)\n \n \n ·\n Managing 76,000 rental properties at 31 December 2022 (2021: 74,000)\n \n \n ·\n The Group generated £8.2\n m\n of free cash flow enabling the repayment of the £7.5m term loan\n \n \n ·\n Net cash of £1.7m on 31 December 2022 (2021: net debt £2.7m)\n \n \n \n \n \n \n 1\n \n Like for like comparisons exclude the acquisitions of Hunters, The Mortgage Genie Ltd, and The Genie Group UK Ltd and the disposals of Aux Group Ltd and Auxilium Partnership Ltd\n \n \n \n \n \n \n 2\n \n Group revenue for 2021 excludes Aux Group Ltd and Auxilium Partnership Ltd which were sold in July 21\n \n \n \n \n \n \n \n \n The Group now manages over 76,000 rental properties on behalf of landlords, with much of the growth in the year coming from the assisted acquisitions program. This factor together with a full year's trading from Hunters in 2022 and rental inflation has generated tot...