The Property Franchise Group plans more agency acquisitions

The Property Franchise Group (TPFG) is planning more acquisitions after a busy 2021 for buying-up agencies.

The umbrella property brand, which incorporates well-known names such as EweMove, Ellis & Co, Martin & Co, took over Hunters last year.

TPFG’s chief financial officer David Raggett, told Estate Agent Today in an exclusive interview that there is enough cash on the balance sheet to fund more acquisitions.

Annual results for 2021 released by TPFG yesterday described the company as "strongly operationally cash generative."

The net cash inflow from operating activities in 2021 was £8.9m, according to TPFG's annual report.

Raggett says: “Acquisitions are part of our DNA.

“Our investors will expect it.

“We will keep growing our dividend and to keep moving forward we need to find good acquisitions that do well.”

Gareth Samples, chief executive of TPFG, added that “the pond we are fishing in is getting smaller.”

He says there are two targets, other franchised businesses in the property space and financial services.

TPFG also acquired broker Mortgage Genie last year.

Samples highlighted the success of EweMove in the company’s annual report, released yesterday, showing the benefits of the franchise model.

The franchise agency brand posted record results within TPFG’s accounts, with EweMove’s revenue increasing by 41% annually during 2021 to £4.1m and its its adjusted pre-tax profit rising by 67% to £1.5m 

Samples adds: “EweMove had its biggest year in terms of growth last year.

“We are targeting 230 territories occupied by franchisees this year and the potential is to take it to 500 to 600 over the next few years.”

He added that the integration of Hunters has gone well and TPFG is hoping to attract experienced agents to its EweMove-style Hunters Personal franchise brand.