Business
Trading Update and Notice of Results
Trading Update and Notice of Results.
About this update from Property Franchise Group Plc
[{"type":"text","content":"\n \nRNS Number : 0738B Property Franchise Group PLC (The) 28 January 2020 \n\n28 January 2020\nTHE PROPERTY FRANCHISE GROUP PLC\n(\"TPFG\", the \"Company\" or the \"Group\")\n \nPre-Close Trading Update and Notice of Full Year Results\n \nThe Property Franchise Group PLC, one of the UK's largest property franchises, is pleased to provide a trading update for the year ended 31 December 2019 (\"FY19\"), ahead of reporting its final results on Tuesday, 31 March 2020.\n \nThe Group has successfully navigated a difficult year for UK residential property and performed in line with market expectations, delivering growth in both revenues and management service fees. Our franchisees successfully mitigated much of the impact of the tenant fee ban and achieved a record performance for lettings revenue. The Group's hybrid brand, EweMove, is also anticipated to show another significant improvement in profit over the prior year. \n \nDespite the wider lettings market being adversely impacted by the tenant fee ban, the Group increased overall revenue to £11.4m* (2018: £11.2m). Furthermore, Management Service Fees (royalties) rose to £9.6m* (2018: £9.4m) and the number of tenanted managed properties serviced increased to c.58,000 at the year-end (2018: c.55,000).\n \nDuring the financial year, the Group's assisted acquisitions programme supported 24 acquisitions by franchisees and added 2,381 managed properties. The Group has continued to invest in technology to enhance opportunities and is pleased to report a 54% increase in leads through its pay-per-click campaign via the traditional high street brands' customer websites, from c.30,000 to c.47,000. \n \nThe Group maintains a strong balance sheet, with nil debt and net cash of £4.0m* at the year-end. \n \n*Unaudited\n \nOutlook\n \nAs previously announced, the Group encouraged its franchisees to follow a mitigation plan to alleviate the impact of the tenant fee ban which became effective in England & Wales on 1 June 2019. As expected, the ban tempered lettings revenues in H2 2019, however the Group has made good progress with this initiative and is now confident that the objective of full mitigation will be attained by June 2020, a full six months ahead of the Group's original plan.\n \nEarly indications of improving market...