Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — FY2021 Earnings Presentation
27 slides from Property Franchise's earnings presentation, Apr 5, 2022
Slide 1: Full Year Results 2021
Full Year Results 2021 The UK’s largest property franchisor A transformational year THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 2: TPFG: The UK's largest property franchisor
TPFG: The UK’s largest property franchisor Nine property brands Significant scale Our Purpose 590 To support our franchisees, helping Trading territories (Incl EweMove) them to become more successful 167 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 Record financial Acquired Hunters in performance driven March, Mortgage Management team Genie in September Record levels of substantially by a very active and agreed LSL franchisee bolstered, providing residential sales best-in-class offer to financial services recruitment into
Slide 4: Financial overview
Financial overview Network income up 67% to £157m (2020: £94m) Profit before tax up 35% to £6.4m (2020: £4.8m) Group revenue1 up 118% to £24.0m (2020: £11.5m) Net debt position 1 of £2.7m (2020: net cash £8.8m) after borrowing £12.5m to fund the acquisition of Hunters Management Service Fees up 57%
Slide 5: High-Street Led Brands / EweMove / Hunters
High-Street Led Brands/ EweMove / Hunters High-street led* EweMove Hunters** Total Network Trading territories 224 158 208 590 Managed properties 56,000 3,000 15,000 74,000 Properties let 25,500 1,300 13,500 40,300 Properties sold 10,000 4,300 11,900 26,200 Network revenue (£'m) 95 16 46 157 TPFG Re
Slide 6: EweMove profit growth
EweMove profit growth EweMove - 5 year revenue and aPBT (£m) 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2017 2018 2019 2020 2021 -0.5 aPBT Revenue THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 7: Revenue
Revenue Revenue : £24.0m Revenue : £11.0m 15% 14% 1% 2% 2% Year ended Year ended 31 December 31 December 20% 2021 2021 61% 85% Management Owned offices Financial Services Management service fees service fees Franchise sales Other Franchise sales Other THE PROPERTY FRANCHISE GROUP PLC - Final results
Slide 8: Group MSF split
Group MSF split MSF : £14.7m MSF : £9.4m 1% 1% 29% Year ended 46% Year ended 31 December 31 December 53% 2021 2020 70% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 9: Group MSF split – like for like
Group MSF split – like for like* LFL MSF : £11.4m MSF : £9.4m 1.0% 1% 29% 38% Year ended Year ended 31 December 31 December 2021 2020 61% 70% Lettings MSF Sales MSF Lettings MSF Sales MSF Financial Services MSF Financial Services MSF * Like for like excludes Hunters THE PROPERTY FRANCHISE GROUP PLC
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 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 12: Cash
Cash Net cash generated from operations (£m) Summary of key movements in cash: 10 8.9 Cash at 31 December 2020 £8.8m 8 6 5.4 Net cash from operations £8.9m 4.4 4.5 4.7 4 2.4 Acquisition of Hunters net of cash acquired (£13.0m) 2 0 Acquisition of The Mortgage Genie net of cash acquired (£0.1m) FY 201
Slide 13: Growth initiatives & market update
Growth initiatives & market update THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 14: Strategic growth initiatives
Strategic growth initiatives Develop sales Financial EweMove Acquisitions at Lettings growth Digital Marketing activity in the high- Services growth recruitment franchisee and street led brands franchisor level Continue to grow Via provision of Aim to create a Aim to double Assisted acquisitions Mai
Slide 15: Strong progress in 2021
Strong progress in 2021 Develop sales Financial EweMove Lettings growth Acquisitions at Digital Marketing activity in the high- Services growth recruitment street led brands franchisor level • At 74,000 • c.70/30 • Agreement with • 58 new territories • Acquired • Completed new managed lettings/sales
Slide 16: Building an industry-leading executive team
Building an 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 • Acq
Slide 17: Market updates
Market updates • Anticipate move to • Rental demand • Rent inflation has more ‘normal’ continues to begun to impact sales market in outstrip supply 2022 – similar to • UK rents up over 2019 (20% less • Increasing trend 8% than 2021) towards professionalisation THE PROPERTY FRANCHISE GROUP PLC - Fina
Slide 18: Outlook
Outlook THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 19: Outlook: Continued positivity into 2022
Outlook: Continued positivity into 2022 Awake to Ultimate goal Q1 2022 has Strategic macro- remains to started better initiatives environment support our than hoped in continue to headwinds, but franchisees in regard to sales support growth so far property order to help activity momentum market rema
Slide 20: Q&A
Q&A THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 21: Appendix
Appendix THE PROPERTY FRANCHISE GROUP PLC - Final results 2021
Slide 22: ESG
ESG TPFG is committed to the management and development of its business in a socially responsible way Environment Social Governance • Formed environmental • Supporting local charities and • High standards of corporate steering group social groups across the governance contribute to our country succe
Slide 23: Income statement summary
Income statement summary 2021 2020 £’000 £’000 Revenue 24,042 11,017 Key movements : Cost of sales (3,697) (933) • Revenue Gross profit 20,345 10,084 • +118% to £24.0m Administrative expenses (12,719) (5,257) • Like for like* +26% to £13.9m Share-based payments charge (970) (68) Operating profit 6,6
Slide 24: Balance sheet summary
Balance sheet summary 2021 2020 £’000 £’000 Share premium 4,129 4,040 Key movements: Own share reserve (348) - • Hunters acquisition added £33m intangibles and £4m deferred tax liabilities Merger reserve 14,345 2,797 • Bank loan of £12.5m drawn to fund Hunters acquisition Other reserves 905 778 2021
Slide 25: 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 26: 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 151 offices 16 offices located 28 offices across Midlands 14 offices along M4 15 offices in South West 158 te
Slide 27: The Board
The Board Richard Martin Gareth Samples David Raggett Non-Independent Chief Executive Officer Chief Financial Officer Non-Executive Chairman Paul Latham Phil Crooks Dean Fielding Independent Independent Non-Executive Director Non-Executive Director Non-Executive Director THE PROPERTY FRANCHISE GROUP
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