EweMove in profit as Property Franchise Group reports...

Hybrid estate agency has reported a modest pre-tax profit of some £400,000 as part of the 2018 results of its parent company, The Property Franchise Group.

EweMove’s sales completions grew by 22 per cent in 2018 and its lettings completions grew by 26 per cent, says a TPFG statement.

Other operational highlights include the revenue for TPFG’s six brands hitting £92m - well up in 2017’s £85m.

Some 60 individual franchisees each had annual revenue in excess of £500,000 and of these, 11 had revenue in excess of £1m.

The group saw 28 acquisitions at the franchisee level adding 3,115 managed lettings properties and overall there were 26 new franchisees recruited - down from 37 in 2017 - but last year also saw 28 ‘resales’ of the same business with a change of franchisee.

TPFG has 377 trading offices - down from 403 in 2017.

Group revenue rose 11 per cent to £11.2m last year, up from £10.1m in 2017 and while pre-tax profits remained static at £4.3m, the 2017 figure included a net exceptional gain of £0.7m.

Management services fees increased 14 per cent to £9.4m.

Ian Wilson, TPFG chief executive officer, told shareholders this morning: "Our traditional high street brands benefited from further deployment of digital marketing ‘know-how’ instilled by our hybrid brand. Encouragingly, EweMove grew its market share across those locations where it operates and delivered a pre-tax profit of £0.4m in a year when most competing hybrid estate agents produced losses.

“We maintain tight financial discipline, reflected in a further strengthening in our balance sheet and an improved net cash position. Furthermore, this underpins the Board's ability to confidently propose a further, meaningful increase in the dividend for the sixth successive year since our IPO in December 2013.

“We entered 2019 with a significant improvement in our positive net cash position and the highest level of recurring revenues in the Group's history. In addition, our profitable and established hybrid business provides further opportunities for growth. The Board is confident about the prospects for 2019 and envisage that the loss of tenant fee revenue and continued regulatory intervention in our sector will create opportunities for further consolidation and growth."