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TPFG announces record interim results, boosted by Hunters acquisition

The Property Franchise Group (TPFG) – the umbrella property brand which incorporates well-known names such as EweMove, Ellis & Co, Martin & Co, Parkers, Whitegates and, after a high-profile acquisition earlier this year, Hunters too – has announced strong figures in its latest trading announcement.

This morning, TPFG – the UK’s largest property franchisor – announced its interim results for the period ended June 30 2021, and also offered an update on current trading.

The main financial highlights are:       

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Group revenue increased 117% to £11.1 million, up from £5.1 million in the first half of 2020.

Meanwhile, profit before tax increased by 57% to £3.1 million – up from £2 million in H1 2020.

Some £900,000 of this arose from underlying business and £200,000 from the acquisition of Hunters, and profit before tax has increased by 54% on H1 2019.

As for share price, TPFG revealed that adjusted basic earnings per share increased 99% to 14.9p. The group has been ‘highly cash generative’ in the year to June 30 2021, as demonstrated by net debt of £5.4 million after borrowing £12.5 million to fund the acquisition of Hunters.

The results revealed that cash generated from operations increased 88% to £4.7 million after acquisition costs of £0.9m compared to the H1 2020 figure of £2.5 million.

Lastly, the interim dividend increased by 81% to 3.8p, up from 2.1p in the first half of 2020.

Operational highlights

Operationally, the network’s oncome increased 118% to £89.4 million, up from £41 million in H1 2020, while the sales agreed pipeline increased 247% to £29.5 million.

The group is now managing 73,000 rental properties, up from 58,000 in H1 2020, in large part due to its purchase of Hunters. EweMove, its flagship hybrid brand, sold 37 new territories, up dramatically from just six in H1 2020.

Gareth Samples, Chief Executive Officer of The Property Franchise Group, said: "I am delighted to be reporting record results for our Group and significant progress with our strategic objectives. We have capitalised on the increased activity in both the residential lettings market and more notably residential sales market in H1 2021. This, together with signs that the sales market continues to perform strongly into the second half, means that we now anticipate reported profits to be ahead of current market expectations for the full year.”

He said the Group is early on in the execution of its strategic growth initiatives and ‘are delighted to already be on track to meeting ambitious targets’.

“EweMove sold 37 territories in H1 2021 and currently trades in 152 territories. Hunters has delivered just over three months of profitability to our Group and has much more to give. Our strategic partnership with LSL is gathering pace and has been enhanced by our post-period acquisition of The Mortgage Genie. At the same time, we have invested and continue to invest in our senior management team so that we can support our talented franchise owners to take advantage of the opportunities on offer. This momentum underpins our confidence for the future.”

He concluded: “We firmly believe that we have put in place the building blocks for earnings enhancing growth and, looking shorter term, that the high activity levels at the start of H2 will deliver record profitability for our Group in 2021.”

The organisation, the UK’s largest multi-brand lettings and estate agency franchising group, has been acquisitive this year – only last week acquiring 80% of mortgage broker The Mortgage Genie.

Meanwhile, in March this year, TPFG announced the takeover of the long-established Hunters brand.

Nearly every shareholder (99.9%) backed the move at a special meeting back in early March. The move meant TPFG took control of more than 400 physical branches, 70,000 tenanted properties and a sales record of some 20,000 homes per year, and also recruited a pool of some 100 financial advisers. 

TPFG now plays host to three national brands – Martin & Co, Hunters and EweMove - plus six regional or local ones, CJ Hole (Bristol), Ellis & Co (London), Parkers (Oxfordshire), Whitegates (North of England), Mullucks (Essex) and Country Properties (Hertfordshire & Bedfordshire).

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