What Belvoir does

Belvoir Group PLC (LON:BLV) is the UK’s largest property lettings franchise.

Founded in 1995, the firm currently has over 300 offices managing around 67,000 properties.

The company also operates a financial services arm which provides its customers with mortgages and other property-related financial services products.


How it is doing

Belvoir Group profits in 2019 will be ‘comfortably ahead’ of expectations, the group said in January, after revenues surged ahead in spite of the impact of Brexit and the tenant fee ban.

Revenue at the lettings agency jumped by 43% to £19.5m with the property division achieving 6% growth.  

Income from franchisees increased by 4% to £8.8mln (2018: £8.5mln), while at the year-end Belvoir’s portfolio of managed properties had risen by 7% to a new record of 67,000. 


In a trading update in May, the company said its franchise networks has proved resilient during the UK’s coronavirus lock-down.

Trading during the first quarter, which incorporated just one week of the lock-down period, was strong and in line with management expectations.

Things got a bit trickier in April but at the end of the month the group carried out a rent arrears survey and the situation was not as bad as the board had feared. Less than 5% of tenants were in arrears on their rent compared with the usual 2% experienced by Belvoir’s networks.

During the month, the estate agency arm of the business completed on around a third of its usual transaction levels, drawing from the pipeline of house sales agreed prior to the lock-down.

The financial services division demonstrated similar resilience amongst the group’s financial advisers, who have drawn on their extensive client base for remortgages and income and life protection sales to deliver income levels in April on a par with 2019. As a result, the overall April performance for the group was significantly stronger than had been anticipated.

On May 13, restrictions on the housing sector were lifted and so the group’s franchisees were able to resume operating from their offices and to carry out physical appraisals and viewings.

Feedback also suggested that the pipeline of agreed house sales has held up well and that there is a pent-up demand from tenants looking to move.

The group said it has been able to continue to generate cash from operations with net debt at May 20, 2020, standing at £6.9mln, unchanged from the position at the end of 2019, despite the company deploying £2.0mln of cash in January to acquire the Lovelle network and making a deferred payment of £500,000 relating to value-added tax.


What the boss says: Dorian Gonsalves, chief executive

“Having reported significant growth in 2019 and got off to a good start in Q1 2020, it has been hugely frustrating for the group not to have been able to build further on this momentum due to COVID-19; however, the current climate has proved once again just how robust and resilient our franchise business model is.”

“Clearly time will tell as to the lasting impact of the current environment on the wider economy and on the UK housing sector more specifically; however, as a group, Belvoir benefits from a high degree of recurring revenue with 61% of gross profit derived from lettings and just 16% dependent on estate agency. Meanwhile, our financial services division has a substantial client base to which we sell a wide variety of financial products, with no excessive dependency on new mortgage sales alone.”




Inflexion points

  • Recent strategic alliance with Nottingham Building Society
  • Profits and revenues to grow for 23rd consecutive year
  • Tenant fee ban impact less than expected
  • Has financial strength to weather coronavirus crisis says CEO
  • Housing market reopened earlier than expected
  • Expects swift recovery in letting market