Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — H1 2021 Earnings Presentation
26 slides from Property Franchise's earnings presentation, Sep 14, 2021
Slide 1: Interim Results 2021
Interim Results 2021 The UK’s largest property franchisor Strong rebound in activity post-lockdown easing
Slide 2: TPFG: The UK's largest property franchisor
TPFG: The UK’s largest property franchisor Nine brands Significant scale The Vision 438 To achieve an increasing trading branches (Excl EweMove) UK market share of lettings, estate 152 agency transactions and EweMove territories property-related financial Over 73,000 services, tenanted managed prope
Slide 3: 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 4: Strategic growth initiatives
Strategic growth initiatives Expanding Financial Services Acquisitions at EweMove Digital Marketing Lettings growth residential growth franchisee and recruitment sales activity and franchisor level footprint Aim to double Aim to create a Assisted acquisitions Continue to grow Provision of Maintainin
Slide 5: Summary of the period
Summary of the period Record financial Significant progress Acquired Hunters in Confident outlook performance driven March 2021, with against strategic underpinned by by a very active integration strategic growth residential sales priorities progressing very well initiatives market THE PROPERTY FRAN
Slide 6: Financial overview
Financial overview Network income up 118% to £89.4m (H1 2020: £41.0m) Profit before tax up 57% to £3.1m (H1 2020: £2.0m) Group revenue1 up 117% to £11.1m (H1 2020: £5.1m) Net debt position 1 of £5.4m (H1 2020: £nil) after borrowing £12.5m to fund the acquisition of Hunters Management Service Fees up
Slide 7: Revenue
Revenue Revenue H121: £11.1m Revenue H120: £5.1m 13% 13% 3% 2% Six months Six months 18% ended ended 30 June 2021 30 June 2020 66% 85% Management Owned offices Management Owned offices service fees service fees Franchise sales Other Franchise sales Other THE PROPERTY FRANCHISE GROUP PLC - Interim Re
Slide 8: Group MSF split
Group MSF split MSF H121: £7.3m MSF H120: £4.2m 0.4% 1% 26% Six months Six months 49% ended 50% ended 30 June 2021 30 June 2020 73% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 9: Group MSF split – like for like
Group MSF split – like for like* LFL MSF H121: £5.7m MSF H120: £4.2m 0.5% 1% 26% 41% Six months Six months ended ended 30 June 2021 30 June 2020 59% 73% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF * Like for like excludes Hunters THE PROPERTY FRANCHISE
Slide 10: 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 2020 2021 2019 2020 2021 THE PROPERTY FRANCHISE GROU
Slide 11: EweMove
EweMove Transactions completed Sales transactions completed 800 600 500 400 700 300 200 600 100 0 500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 400 300 Lettings transactions completed 150 200 100 100 50 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun
Slide 12: Cash
Cash Net cash generated from operations (£m) Summary of key movements in cash in last six months: 6 5.4 4.7 6 months = 5 4.4 4.5 Cash at 31 December 2020 £8.8m 4.1 4 3 2.4 Net cash from operations £4.1m 2 1 Acquisition of Hunters net of cash acquired (£13.1m) 0 FY 2016 FY 2017 FY 2018 FY 2019 FY 202
Slide 13: Strategic initiatives
Strategic initiatives THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 14: Strategic growth initiatives
Strategic growth initiatives Expanding Financial Services Acquisitions at EweMove Digital Marketing Lettings growth residential growth franchisee and recruitment sales activity and franchisor level footprint Aim to double Aim to create a Assisted acquisitions Continue to grow Provision of pool of 10
Slide 15: Strategic growth initiatives
Strategic growth initiatives Expanding Financial Services Acquisitions at EweMove Digital Marketing Lettings growth residential growth franchisee and recruitment sales activity and franchisor level footprint Aim to double Aim to create a Assisted acquisitions Continue to grow Provision of Maintainin
Slide 16: Hunters integration update
Hunters integration update Integration progressing well Acquisition rationale • Increase scale to become the UK’s largest property franchisor Enhanced scale and geographic reach • Enhanced database will enable access to more territories Earnings accretion and synergies • Initial synergy initiatives
Slide 17: Our market
Our market Increasing interest Demand across Gradual move to in the Hybrid the market for all more traditional model property types trading patterns? THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 18: Outlook
Outlook THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 19: Outlook: An exciting period ahead
Outlook: An exciting period ahead Focus on fully integrating Ultimate goal is Trading to date Strategic Macro- Hunters, driving to support our initiatives environment remains EweMove franchisees in continue to recruitment and will drive future encouraging in order to help support growth developing d
Slide 20: Q&A
Q&A THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 21: Appendix
Appendix THE PROPERTY FRANCHISE GROUP PLC - Interim Results
Slide 22: Income statement summary
Income statement summary 6 months ended 6 months ended 12 months ended 30.06.21 30.06.20 31.12.20 £’000 £’000 £’000 Key movements (H1 2020 to H1 2021): Revenue 11,122 5,131 11,017 • Revenue Cost of sales (542) (441) (933) • +117% to £11.1m Gross profit 10,580 4,690 10,084 • Like for like* +37% to £7
Slide 23: Balance sheet summary
30.06.2021 30.06.2020 31.12.2020 £’000 £’000 £’000 Balance sheet summary Equity S ld ’ qu Share capital 320 258 258 Key movements: Share premium 4,129 4,040 4,040 • Hunters acquisition added £33m intangibles and £4m deferred tax liabilities Merger reserve 14,345 2,797 2,797 • Bank loan of £12.5m dra
Slide 24: Cashflow summary
6 months 6 months 12 months Cashflow summary ended 30.06.2021 £’000 ended 30.06.2020 £’000 ended 31.12.2020 £’000 Cash flows from financing activities Issue of ordinary shares 96 - - 6 months 6 months 12 months ended ended ended Equity dividend paid (1,706) - (542) 30.06.2021 30.06.2020 31.12.2020 B
Slide 25: 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 153 offices 18 offices located 29 offices across Midlands 13 offices along M4 14 offices in South West 152 te
Slide 26: The Board
The Board Richard Martin Gareth Samples David Raggett Glynis Frew Non-Independent Chief Executive Officer Chief Financial Officer Executive Director Non-Executive Chairman Paul Latham Phil Crooks Dean Fielding Independent Independent Non-Executive Director Non-Executive Director Non-Executive Direct
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