Property Franchise Group Plc · LSE:TPFG
Property Franchise — The Property Franchise Group — FY2024 Earnings Presentation
28 slides from Property Franchise's earnings presentation, Apr 1, 2025
Slide 1: Final Results 2024
Final Results 2024 Transformational year with significantly enhanced scale and 29% increase in full year dividend
Slide 2: Agenda
Agenda 1. Highlights 2. Financial Review 3. Strategy 4. Outlook 5. Q&A Final Results 2024 2
Slide 3: Key Highlights
Key Highlights 1 2 Revenue 3 £67.3m 52% Transformational year, recurring income Adjusted EBITDA completed two acquisitions £24.1m £14.7m cash generated from Dividend up operations 29% 4 Managed 5 6 portfolio of 153,000 Sales pipeline Integration, leveraging properties Increased to scale and synergie
Slide 4: Transformational Acquisitions
Transformational Acquisitions Two major acquisitions completed during the year which have transformed the scale of the Group TPFG Belvoir Group GPEA £27.3m £34.2m £13m 2023 Total Revenue 2023 Total Revenue 2023 Total Revenue £11.2m £11.0m £3m 2023 Adjusted Profit 2023 Adjusted Profit 2023 Adjusted P
Slide 5: Divisional Business Structure
Divisional Business Structure Following the acquisitions the business has been structured into three principal divisions Franchising Financial Services Licensing Network of independent Advisers earning commission Network of independent businesses operating under on mortgages and businesses operating
Slide 6: Operational Highlights
Operational Highlights The Group has seen growth in all key operational metrics 1 2 3 Financial Services division Managed portfolio of Sales pipeline delivered 23,000 mortgages 153,000 properties increased to £33.4m in 2024 after acquisition (2023: c.78,000) (2023: £23.1m) of Brook Financial Service
Slide 7: Financial Review
Financial Review Copy Here Financial Review Final Results 2024 7
Slide 8: Financial Highlights
Financial Highlights Financial KPIs have significantly improved over the previous year Revenue % Recurring Revenue Adjusted PBT Dividend £67.3m 52% £22.3m 18p +147% YoY -4% YoY +99% YoY +29% YoY 2023: £27.3m 2023: 2023:£11.2m 56% 2023: £11.2m 2023: 14p (Net Debt)/Net Cash Leverage Cash from Operatio
Slide 9: Revenue/Profitability Split
Revenue/Profitability Split The franchising division continues to deliver the highest proportion of profitability Revenue Adj Operating Profit* £67m £27.4m Financial Financial Franchising Licensing Franchising Licensing Services Services £40.1m £19.2m £7.2m £22.4m £3.3m £1.8m (61%) (28%) (10%) (82%)
Slide 10: Franchising
Franchising Lettings MSF continues to make up nearly half of all +57.7% franchising income. Supporting the robust recurring revenue % £6m £5m £10m Business Model £7m £5m £26m £41m £19m Franchisees offer Lettings, Sales and Financial Services to their clients, with a core focus on Lettings We earn Ma
Slide 11: Financial Services
Financial Services Revenue Our Financial Services business has grown significantly with the acquisition of Brook through Belvoir Group +1,193% Business Model A network of leading UK mortgage intermediaries operating under Brook Financial “Brook” and The £2m £10m £19m £9m Mortgage Genie. We earn comm
Slide 12: Licensing
Licensing The acquisition of GPEA adds a licensing division, where a regular recurring monthly fee is paid in return for use of the Brands £0m £4m £7m £3m Business Model Premium brand Membership organisation operating in the UK for 800 Independent 2023 2024 and Internationally Estate Agents We recei
Slide 13: Impact of Acquisitions
Impact of Acquisitions £41m In addition to the acquisitions, the underlying business has delivered 14% improvement in profitability 2024 Revenue £29m £31m £7m £67m Gross Profit £24m £17m £5m £45m - - Adj Op Profit £2.5m £1.5m £15m £10m £2m £23m 2023 Revenue £27m Gross Profit £22m - Adj Op Profit £2m
Slide 14: Cash
Cash Cash flow continues to be strong and has increased to 30p per share on an adjusted basis Free cash flow per Cash at 31st December 2023 £7.6m share (£) Net cash from operations £14.7m Acquisitions (Net of Cash Acquired) (£16.0m) Bank Loans Drawn £20.0m Bank Loans Repaid (£9.3m) Net cash Dividend
Slide 15: Capital Allocation
Capital Allocation The Group continues to deliver on its capital allocation strategy 2024 Financial • Debt raised for GPEA acquisition, accelerated pay down • Pay down debt 1 Resilience • Maintain appropriate cash reserves • Net Debt £9.1m (2023 – 5.1m Net Cash) • Leverage 0.4x Organic • Strategic s
Slide 16: Consistent Delivery
Consistent Delivery The Group has delivered consistent growth in Adj 18.0p PBT, EPS and Dividend over the last 10 years 14.0p 13.0p 11.6p 8.7p 8.4p 6.5p 7.5p 5.9p 31.7p 4.0p 29.7p 2.6p 27.9p 28.4p Dividend CAGR EPS CAGR 16.8p 16.2p 15% 15.4p 16% 14.4p 14.0p 11.6p 7.7p 3Yr Cash Generation* 2014 2015
Slide 17: Strategy
Strategy Financial Review Copy Here Copy Here Strategy Final Results 2024 17
Slide 18: Market Update
Market Update The market was supportive of our growth in 2024 and presents opportunities for 2025 Sales Financial Services Lettings House prices forecast to increase by Gross lending is forecast to increase by Uk rents are expected to rise between up to 2.5% within the year 11% to £260Bn in 2025 3-4
Slide 19: Renters' Rights Bill
Renters’ Rights Bill The Renters’ Rights Bill has potential challenges but also presents a significant opportunity End fixed term tenancies, removes no fault evictions and brings in hefty fines for non- 1 What is it? compliant landlords When is it coming 2 into law? Expected to be implemented in Aut
Slide 20: Growth Strategy
Growth Strategy Increase our market penetration and keep lettings at Attract new franchisees, licensee and advisers, to our core increase coverage and enable resale Lettings Recruitment 2025 - Launch rent guarantee product and funding 2025 – Improve Guild offering, drive international deal to suppor
Slide 21: Outlook
Strategy Financial Review Copy Here Copy Here Outlook Final Results 2024 21
Slide 22: Outlook
Outlook 2025 will deliver another step change in profitability and cash generation High level of recurring Focused on completing Q1 trading in line with revenue supports resilient integration & delivering management’s expectations business model synergies of acquisitions Level of cash generation Wel
Slide 23: Q&A
Strategy Financial Review Copy Here Copy Here Q&A Final Results 2024 23
Slide 24: Appendix
Strategy Financial Review Copy Here Copy Here Appendix Final Results 2024 24
Slide 25: Business Structure
Business Structure £41m Following the acquisitions the business has been structured into three principal divisions Franchising Financial services Licensing The largest Franchise business in the UK Significantly strengthened Financial Services division New Licensing division Revenue £40.1m £19.2m £7.
Slide 26: Profit & Loss Summary
Profit & Loss Summary Final Results 2024 26
Slide 27: Balance Sheet Summary
Balance Sheet Summary Net (Debt)/Net Cash £9.1m after raising £20m of debt for acquisitions in the year Net Assets +257% to £204m as a result of the two acquisitions. Final Results 2024 27
Slide 28: The Board
The Board Final Results 2024 28
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