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TPFG: Market is returning to 2019 conditions

The Property Franchise Group (TPFG) is expecting the market to align with conditions seen in 2019.

A trading update from the listed agency brand this morning said there are early signs of “more normal stock levels and instructions.”

The update said: “It is too early to tell where the number of residential sales transactions will end up this year although early signs of more normal stock levels and instructions along with the improved conversion times suggests the market for second hand residential properties is likely to align with that of 2019.”




· Group revenue increased 13% to £27.1m (2021: £24.1m)

7% like for like increase on 2021 to £14.9m

· Management Service Fees ("royalties") increased 8% to £15.9 m (2021: £14.7m)

5% like for like increase on 2021 to £11.8m

· EweMove sold 44 new territories (2021: 58) taking the total number under contract to 189

· Sales agreed pipeline remained strong at £22.2m at 31 December 2022 (2021: £26.5m)

· Managing 76,000 rental properties at 31 December 2022 (2021: 74,000)

· The Group generated £8.2m of free cash flow enabling the repayment of the £7.5m term loan

· Net cash of £1.7m on 31 December 2022 (2021: net debt £2.7m)

TPFG said it now manages more than 76,000 rental properties on behalf of landlords, with much of the growth in the year coming from the assisted acquisitions program. 

This factor together with a full year's trading from Hunters in 2022 and rental inflation has generated total growth in Managed Service Fees ('MSF') from lettings of 13% over 2021, of which Hunters contributed 4%, TPFG said.

EweMove, the update said, had a strong year as it continued to build on its brand positioning and scale. The sale of 44 new territories versus 58 in 2021 helped set a new record for the total number of territories under contract which now stands at 189 with over 200 expected during 2023.  

Overall, TPFG said its strength in lettings has “more than offset the significant reduction in residential sales transactions in 2022.”

It said: “Whilst we expect residential sales transactions to reduce in 2023 to perhaps 1.1m in line with forecasts by Zoopla, we also expect recurring lettings revenues to continue to grow at or above the levels seen in 2022.” 

During 2022, TPFG brands generated £8.2m of free cash flow which enabled it to repay the £7.5m term loan originally drawn in 2021 providing a strong balance sheet for opportunistic growth.  

Gareth Samples, chief executive of TPFG, said: "The board and I are delighted to report that H2 performed strongly against a difficult backdrop and, combined with solid trading in H1, resulted in profit anticipated to be ahead of market expectations.

“MSF accounted for 60% of group revenue, whilst lettings, our most significant recurring revenue stream generated by our franchise network and our owned offices, accounted for 43% of group revenue. We remain focused on increasing the contribution from lettings in line with our strategic initiatives.

“We achieved the net cash position we expected at year end paying off our term loan early. This was an important step in proving the successful integration of Hunters and underpins our ongoing success, no matter how the external conditions develop.

“As a highly cash generative group with a strong balance sheet, we look forward to the opportunities that 2023 may bring."


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