Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — H1 2022 Earnings Presentation
25 slides from Property Franchise's earnings presentation, Sep 1, 2022
Slide 1: Half Year Results 2022
Half Year Results 2022 The UK’s largest property franchisor Full Year results anticipated to be in-line with market expectations THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022
Slide 2: TPFG: The UK's largest property franchisor
TPFG: The UK’s largest property franchisor Nine property brands Significant scale Our Purpose 592 To support our franchisees, helping Trading territories (Incl EweMove) them to become more successful 178 Our Vision EweMove territories contracted To achieve an increasing Over 74,000 UK market share o
Slide 3: Summary of the period
Summary of the period Resilient Continued Continued benefits Growth across key execution against performance in a from the strength metrics including our strategic predicted market and experience of revenue, Managed initiatives so far apart from the senior Services Fees and sales completion manageme
Slide 4: Financial overview
Financial overview Profit before tax up 9% to £3.8m (H1 2021: £3.5m) Group revenue up 18% to £13.1m (H1 2021: £11.1m) Net debt position of £2.6m (H1 2021: £5.4m) Management Service Fees up 5% to £7.5m (H1 2021: £7.1m) Dividend declared for H1 2022 up 11% at 4.2p per share (H1 2021: 3.8p) Adjusted EB
Slide 5: Adjusted operating margin
Adjusted operating margin THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 6: Revenue
Revenue 14% 22% 3% 1% Six months Six months ended 18% ended 30 June 2022 57% 30 June 2021 19% 65% Management Owned offices Management Owned offices service fees service fees Franchise sales FS and franchisee Franchise sales FS and franchisee support services support services THE PROPERTY FRANCHISE G
Slide 7: Group MSF split
Group MSF split 0.6% 0.4% Six months 44.1% Six months ended 49.6% ended 50% 55.3% 30 June 2022 30 June 2021 Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022 7
Slide 8: High street-led brands (excluding Hunters)
High street-led brands (excluding Hunters) Lettings MSF (£) Sales MSF (£) 570,000 400,000 550,000 350,000 530,000 510,000 300,000 490,000 250,000 470,000 450,000 200,000 430,000 150,000 410,000 390,000 100,000 370,000 50,000 350,000 330,000 - 2019 2021 2022 2019 2021 2022 THE PROPERTY FRANCHISE GROU
Slide 9: EweMove
EweMove Transactions completed Sales transactions completed 800 600 500 700 400 300 200 600 100 0 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2021 2022 400 300 Lettings transactions completed 200 200 150 100 100 50 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May
Slide 10: Market update & growth initiatives
Market update & growth initiatives THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022
Slide 11: Market update
Market update • Seasonally- adjusted • Rental demand • Clear impact of rent UK Property continues to outstrip inflation – will flow Transactions were 28% supply through the Group’s lower than in H1 2021 managed book over time • Increasing trend • Demand strong, but towards • UK rents up over 10% lea
Slide 12: Our resilient and growth-focused Group
Our resilient and growth-focused Group Why are we well-positioned? Very experienced Clear and focused Highly cash senior management generative growth strategy team adding value Core strength to capitalise on the Quality acquisitions delivering well on High proportion of Strong cost control opportuni
Slide 13: Our industry-leading executive team
Our industry-leading executive team Ellie Hall Gareth Williams Glynis Frew As legislation changes and MD of Martin & Co MD of Hunters Franchise Training technology evolves, our central (Midlands and and Development North) Director team innovate to keep our franchise owners ahead of the • Acquisition
Slide 14: Strategic growth initiatives
Strategic growth initiatives Develop sales Financial EweMove Lettings growth Acquisitions at Digital Marketing activity in the high- Services growth recruitment street led brands franchisor level Continue to grow Via provision of Aim to create a New target to Acquisition of Maintaining a best the po
Slide 15: Strong progress in H1 2022
Strong progress in H1 2022 Develop sales Financial EweMove Lettings growth Acquisitions at Digital Marketing activity in the high- Services growth recruitment street led brands franchisor level • 74,000 managed • c.56/44 • Continued steady • 19 new territories • Hunters and • New websites properties
Slide 16: Outlook
Outlook THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022
Slide 17: Outlook: Full year expected to be in-line with expectations
Outlook: Full year expected to be in-line with expectations Awake to macro- Ultimate goal H2 2022 has Strategic environment remains to started better initiatives headwinds, but support our than hoped in continue to so far property franchisees in regard to sales support growth market order to help ac
Slide 18: Q&A
Q&A THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022
Slide 19: Appendix
Appendix THE PROPERTY FRANCHISE GROUP PLC - Interim results 2022
Slide 20: Income statement summary
Income statement summary Restated 6 months ended 6 months ended 12 months ended 30.06.22 30.06.21 31.12.21 Key movements (H1 2021 to H1 2022) £’000 £’000 £’000 Revenue 13,089 11,122 24,042 • Revenue • Total revenue + £2m (18%) to £13.1m Cost of sales (2,770) (1,487) (3,697) • MSF + £0.4m (5%) Gross
Slide 21: Balance sheet summary
Restated 30.06.2022 30.06.2021 31.12.2021 £’000 £’000 £’000 Balance sheet summary Equity S ld Share capital ’ qu 320 320 320 Key movements: Share premium 4,129 4,129 4,129 • Intangibles: £0.7m amortisation, £0.3m EweMove system addition Merger reserve 14,345 14,345 14,345 • Other reserves: increased
Slide 22: The Property Franchise Group: Timeline of our Milestones
The Property Franchise Group: Timeline of our Milestones SOLD 1986 1995 2007 2012 2013 Martin & Co founded First franchise 100 franchised Launched Martin & Co PLC in 1986 in Yeovil launched in 1995 offices trading sale service listed on AIM 2021 2020 2019 2017 2016 2014 Launched new 58,000 Re-brand
Slide 23: Business model
Business model Martin & Co Ellis&Co Whitegates Parkers CJ Hole EweMove Hunters Est. 1987 Acquired in 2014 Acquired in 2014 Acquired in 2014 Acquired in 2014 Acquired in 2016 Acquired in 2021 147 offices 16 offices located 28 offices across Midlands 16 offices along M4 16 offices in South West 178 te
Slide 24: The Board
The Board Richard Martin Gareth Samples David Raggett Non-Independent Chief Executive Officer Chief Financial Officer Non-Executive Director Paul Latham Phil Crooks Dean Fielding Independent Independent Non-Executive Director Non-Executive Chairman Non-Executive Director THE PROPERTY FRANCHISE GROUP
Slide 25: Cash
Cash Net cash generated from operations (£m) Summary of key movements in cash in last six months: 10 8.9 8 5.4 Cash at 31 December 2021 £8.4m 6 4.5 4.7 6 months = 4.4 4 3.3 2.4 Net cash from operations £3.3m 2 0 Bank loan repayments (£0.9m) FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 H1 22 Dividends paid (£
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