Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — FY2023 Earnings Presentation
31 slides from Property Franchise's earnings presentation, 2024
Slide 1: Full Year Results 2023 & merger with Belvoir Group plc
Full Year Results 2023 & merger with Belvoir Group plc The UK’s largest multi-brand property franchisor THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023
Slide 2: The leading property, mortgage and franchise entity
The leading property, mortgage and franchise entity TPFG is the UK’s largest property franchisor: £261m 153k+ • Lettings • Estate agency • Financial services Franchise network turnover Managed properties • Established in 1986, it has grown both organically and through 15 45 acquisition and is now a
Slide 3: FY23 Record results and transformational acquisition
FY23 Record results and transformational acquisition Franchise model, Transformational FY23 another Business model merger with Belvoir Combined Group with focus on year of record has proven its creates the UK’s will benefit from lettings and performance in a strength and largest multi-brand increase
Slide 4: National footprint with Local expertise
National footprint with Local expertise 15 property brands National property franchise brands New for 2024 143 Territories 178 Territories 189 Territories 157 Offices 90 Offices 39 Offices Regional property franchise brands 20 Offices 15 Offices 10 Territories 29 Territories 16 Territories 16 Territ
Slide 5: Financials
Financials THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 5
Slide 6: FY23 Financial highlights
FY23 Financial highlights Delivered sustained growth over the last 11 years in profit before tax, CAGR +23.5% and dividends +23.3% Group revenue MSF Adjusted operating margin Profit before tax Adjusted EPS fully diluted £27.3m £16.1m 42% £9.0m 28.4p 30 27.2 27.3 20 24.0 16.1 14.7 15.9 10.0 8.8 9.0 2
Slide 7: Revenue
Revenue Revenue : £27.3m Revenue : £27.2m 15% 16% 6% 6% 2% Year ended 1% Year ended 31 December 31 December 2023 59% 2022 58% 18% 19% Management Owned offices Financial Services Management Owned offices Financial Services service fees service fees Franchise sales Other Franchise sales Other THE PROP
Slide 8: Group MSF split
Group MSF split MSF : £16.1m MSF : £15.9m 1% 1% 39% Year ended Year ended 44% 31 December 31 December 2023 55% 2022 60% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 8
Slide 9: Cash
Cash Net cash generated from operations (£m) Summary of key movements in cash in the last year: 10 8.9 9.0 9.0 8 Cash at 31 December 2022 £6.7m 5.4 6 4.5 4.7 4.4 4 Net cash from operations £9.0m 2.4 2 RCF repaid (50%)* (£2.5m) 0 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Dividends paid hg (£4.3
Slide 10: A period of significant growth
A period of significant growth THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 10
Slide 11: High street-led brands
High street-led brands Lettings MSF (£) Sales MSF (£) 680000 400000 630000 350000 300000 580000 250000 530000 200000 480000 150000 430000 100000 380000 50000 330000 0 2021 2022 2023 2021 2022 2023 THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 11
Slide 12: Market update
Market update • • Improving market, with Strong lettings market, • Subdued sales market, with demand continuing lettings continuing to grow with an uptick in the to outstrip supply at high single digits second half • • Expecting 1.1 million sales Rising rental rates and • Outperformed the increasing
Slide 13: 2023 update
2023 update • Strong year, with double digit growth. 53% of • 46 new franchise owners recruited, 15 as total revenue traditional agents and 31 to our hybrid model • 78,000 managed properties Recruitment • Extended the EweMove territories to 182 Lettings • 21 resales of existing franchises to bring i
Slide 14: Growth drivers
Growth drivers • Increase our market penetration and keep lettings at our core • Attract new franchisees, to increase UK coverage, develop brands further and Lettings • Introduction of more regulation is Recruitment enable the resale of existing franchise expected to drive more landlords to opt terr
Slide 15: Merger creates UK's largest multi-brand property franchisor
Merger creates UK’s largest multi-brand property franchisor THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 15
Slide 16: Belvoir Group
Belvoir Group Founded in 1995 and listed on AIM in 2012 The merger Leading UK property, mortgage and franchise group operating through two divisions: • Belvoir merger completed on 7 March 2024 in an all- • Property franchising: share merger ₋ Six estate and lettings agency brands operating throughou
Slide 17: Belvoir merger creates UK's largest multi-brand franchisor
Belvoir merger creates UK’s largest multi-brand franchisor • 910 locations, managing c153,000 tenanted properties, expected to sell more than 28,000 Enhanced scale and properties pa geographic reach • Enables enlarged Group to enhance its value proposition to franchisees and customers • Areas for co
Slide 18: Belvoir FY23 Financial and non-financial KPIs
Belvoir FY23 Financial and non-financial KPIs Belvoir audited results Belvoir non-financial KPIs 2023 2022 Change % 2023 2022 Change % Number of property Turnover (£m) 34.2 33.7 1% 331 338 (2%) franchise offices Adjusted EBITDA (£m) 11.1 10.6 5% Average MSF per franchised £35,800 £34,000 +2% office
Slide 19: TPFG and Belvoir highlights (£'000)
TPFG and Belvoir highlights (£’000) TPFG Belvoir Combined 2023 2022 2023 2022 2023 2022 Revenue 27,278 27,158 34,182 33,718 61,460 60,876 Gross profit 21,878 21,583 Hu 20,480 20,269 42,358 41,852 Adjusted EBITDA 12,090 11,809 11,139 10,596 23,229 22,405 PBT 9,014 8,833 9,116 9,118 18,130 17,951 THE
Slide 20: Outlook
Outlook THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 20
Slide 21: Outlook
Outlook Q1 ahead of Improving management’s Another strong sales market Cognisant of expectations in year for and financial uncertainty terms of both lettings services caused by revenue and anticipated throughout general profitability 2024 election Transformational year ahead for the Group THE PROPER
Slide 22: Q&A
Q&A THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 22
Slide 23: Appendix
Appendix THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 23
Slide 24: Sustainability
Sustainability Commitment to expanding our ESG knowledge and standing ESG assessment • Conducted inaugural materiality assessment of ESG matters to identify • The assessment also highlighted that Governance and Social categories and prioritise potential issues that could impact our operations or suc
Slide 25: Income statement summary
Income statement summary Key movements : • Revenue • +0.4% to £27.3m • Adjusted EBITDA • +2% to £12.1m • Operating profit • £9.3m (2022: £9.3m) • PBT • +2% to £9.0m THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 25
Slide 26: Balance sheet summary
Balance sheet summary Key movements: • Net cash of £5.1m at 31 December 2023 (2022: net cash £1.7m) • 50% of RCF repaid (£2.5m); the remaining £2.5m was repaid in January 2024 THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 26
Slide 27: 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 28: 5 year trends
5 year trends +139% growth +66% growth +125% growth +129% growth Turnover (£m) MSF (£m) Profit before tax (£m) Adjusted PBT (£m) 30 27.2 27.3 18 10.0 12.0 11.2 15.9 16.1 8.8 9.0 10.7 24.0 16 14.7 25 10.0 9.4 14 8.0 20 12 6.4 9.7 8.0 9.4 6.0 10 4.8 15 6.0 5.3 11.4 11.5 8 4.0 4.9 4.0 10 6 4.0 4 5 2.0
Slide 29: 5 year trends
5 year trends +128% growth +82% growth +79% growth +438% growth Adjusted EBITDA (£m) EPS fully diluted (pence) Adjusted EPS fully diluted Dividend per share (pence) 14 25 (pence) 16 22.5 22.0 14.0 11.8 12.1 30 28.4 28.4 13.0 12 26.9 14 10.4 20 11.6 10 25 12 14.4 10 8.7 8 15 20 12.1 11.3 15.9 16.5 5.
Slide 30: 5 year trends
5 year trends ROCE strong & ROCI strong & +136% growth Highly cash generative improving improving Net Assets (£m) Net cash (£m) Return on capital employed Return on capital invested 10.0 8.8 30% 50% 45 40.8 8.0 24% 41% 40 37.2 25% 22% 40% 35 33.4 6.0 5.1 20% 21% 4.0 20% 17% 30% 30 4.0 30% 27% 28% 25
Slide 31: The Board
The Board THE PROPERTY FRANCHISE GROUP PLC – Full Year Results 2023 31
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