Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — H1 2023 Earnings Presentation
23 slides from Property Franchise's earnings presentation, September 2023
Slide 1: Interim Results 2023
Interim Results 2023 The UK’s largest property franchisor Record H1, outperforming market in lettings and sales THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 1
Slide 2: TPFG: The UK's largest property franchisor
TPFG: The UK’s largest property franchisor Nine property brands Significant scale Our Purpose 614 To support our franchisees, helping Trading territories (Incl them to become more successful EweMove) 194 Our Vision EweMove territories contracted To achieve an increasing 77,000 UK market share of let
Slide 3: Summary of the period
Summary of the period Another period of Lettings demand Strong performance Ongoing execution record revenue, with continuing to outstrip demonstrating the against our strategic increasing proportions impact of reduction in resilience of the initiatives of recurring revenue UK housing offering and th
Slide 4: Financials
Financials THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 4
Slide 5: Financial overview
Financial overview Profit before tax up 11% to £4.2m (H1 2022: £3.8m) Group revenue to £13.2m (H1 2022: £13.1m) Net cash position of £0.7m (H1 2022: net debt Management Service Fees up 3% to £7.7m (H1 £2.6m) 2022: £7.5m) Dividend declared for H1 2023 up 10% at 4.6p per Adjusted EBITDA1 £5.8m (H1 202
Slide 6: Revenue
Revenue Revenue : £13.2m Revenue : £13.1m 16% 15% 7% 7% Six months 1% Six months 2% ended 30 June ended 30 June 2023 58% 2022 57% 17% 19% Management Owned offices Financial Services Management Owned offices Financial Services service fees service fees Franchise sales Other Franchise sales Other THE
Slide 7: Group MSF split
Group MSF split MSF : £7.7m MSF : £7.5m 1% 1% 38% Six months Six months 44% ended 30 June ended 30 June 2023 55% 2022 61% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 7
Slide 8: High street-led brands (excluding Hunters)
High street-led brands (excluding Hunters) Lettings MSF (£) Sales MSF (£) 610000 400000 590000 570000 350000 550000 300000 530000 510000 250000 490000 470000 200000 450000 430000 150000 410000 100000 390000 370000 50000 350000 330000 0 2021 2022 2023 2021 2022 2023 THE PROPERTY FRANCHISE GROUP PLC –
Slide 9: Cash
Cash Net cash generated from operations (£m) Summary of key movements in cash in last six months: 10 8.9 9.0 8 5.4 Cash at 31 December 2022 £6.7m 6 4.7 6 months = 4 3.3 2.5 Net cash from operations £2.5m 2 0 Bank loan repaid (RCF) (£2.5m) FY 19 FY 20 FY 21 FY 22 HY 22 HY 23 Dividends paid (£2.8m) Fr
Slide 10: Market update & growth initiatives
Market update & growth initiatives THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 10
Slide 11: Market update
Market update • UK property transactions • Strong rental demand • Double digit growth in UK for June 2023 were 20% continues to outstrip lettings market expected to lower than the supply continue comparable 2022 period • Sales agreed pipeline • Rental inflation a • Expect sales market to remains str
Slide 12: Our resilient and growth-focused Group
Our resilient and growth-focused Group Why are we well-positioned? Robust business Strongly cash generative Very experienced senior Clear and focused growth and a market leader with a management team adding proven franchise model with a net cash position strategy value and growth track record Av. FC
Slide 13: Strategic initiatives - robust H1 performance
Strategic initiatives - robust H1 performance ▪ 77,000 managed properties ▪ 17 new territories sold ▪ 7 assisted acquisitions ▪ Total at 194 under contract ▪ 806 managed properties, contributing EweMove ▪ Significant growth opportunities ahead Lettings growth recruitment £0.8m of managed income per
Slide 14: Outlook
Outlook THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 14
Slide 15: Outlook
Outlook Resilient business Current market Ultimate goal Growth supported model well adept conditions remains to by enhanced to continue anticipated to support our digital marketing delivering amidst continue through franchisees in capabilities and a challenging H2 order to help improved data market
Slide 16: Q&A
Q&A THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 16
Slide 17: Appendix
Appendix THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 17
Slide 18: Income statement summary
Income statement summary Key movements : • Revenue • +1% to £13.2m • Adjusted EBITDA • +2% to £5.8m • Adjusted PBT • +3% to £5.3m THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 18
Slide 19: Balance sheet summary
Balance sheet summary Key movements: • Net cash of £0.7m at 30 June 2023 (30 June 2022: net debt £2.6m) • 50% of RCF repaid (£2.5m) THE PROPERTY FRANCHISE GROUP PLC – Interim Results 2023 19
Slide 20: 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 21: Our industry-leading executive team
Our industry-leading executive team Ellie Hall Rob Smith Glynis Frew Adam Noonan MD of Martin & Co MD of Hunters and Franchise Training and Commercial Director (Midlands and North) Whitegates Development Director • Marketing • Acquisition of • Residential sales • Training specialist • IT lettings bu
Slide 22: 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 143 offices 15 offices located 29 offices across Midlands 16 offices along M4 16 offices in South West 189 te
Slide 23: The Board
The Board Paul Latham Gareth Samples David Raggett Non-Executive Chairman Chief Executive Officer Chief Financial Officer Richard Martin Phil Crooks Dean Fielding Claire Noyce Non-Executive Director Independent Independent Independent Non-Executive Director Non-Executive Director Non-Executive Direc
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