Buying hunters and joining forces with LSL ‘strengthened our position in the market’ – Property Industry Eye

Gareth Samples, CEO of Property Franchise Group PLC, congratulated the group’s franchisees after the company yesterday announced positive results for the year ending December 31, 2020, revealing that pre-tax profit was up 20% to £ 4.8million, compared to £ 4million. one year earlier.

The UK’s largest real estate franchisor reports that network revenue increased to £ 94million (2019: £ 93million), group revenue increased to £ 11.5million (2019: £ 11.4million), while management service fees reached £ 9.4million (2019: £ 9.7million). .

Business has been split – 70% leases and 30% sales, Adjusted EBITDA increased 8% to £ 5.8million (2019: £ 5.3million, operating margin of 42% was recorded (2019: 35%) and dividends paid for FY20 of 8.7p (2019: 2.6p)

Overall the group has maintained a strong balance sheet, with net cash of £ 8.8m at the end of the year (2019: net cash £ 4.0m). Net debt as of March 31, 21 was £ 7.3million.

In terms of operational highlights, the pipelines Ales agreed to at the end of the year saw high street brands almost double in December 2019 to £ 10.3m (2019: £ 5.2m), EweMove has more than doubled in December 2019 to £ 5.6m (2019: £ 2.5m), 11 portfolio acquisitions assisted by franchisees, adding 1,305 managed properties; and £ 0.1 million from MSF annualized.

In addition, the results show that approximately 58,000 rental properties are managed – the same level as the previous year, with a strengthened management team to provide franchisees with enhanced support.

Most recently, the first quarter business update reveals that TPFG-led brands on the high streets saw their network revenues increase 13% to £ 23million (2020: £ 20million), the pipeline Sales agreed on March 31 was up 45% from the previous year to £ 9.4million. (2020: £ 6.4million), sales trade up 49% year-on-year to 2553 (2020: 1594), while 55,000 rental properties were managed on March 31, down slightly compared to 56,000 a year earlier.

In total, the group had 235 offices as of March 31, compared to 241 a year earlier.


Network revenues more than doubled to £ 5million (2020: £ 2million)

Agreed pipeline sales on March 31 up 120% year-over-year at 1976 properties (202: 897)

Realized sales up 102% from the previous year to 1229 (2020: 607)

Management of 3,000 rental properties as of March 31 (2020: 2,000)

Franchise sales up significantly year on year to 20 (2020: 3)

Total number of offices 135 (2020: 123)


Network revenues increased 69% to £ 16million (2020: £ 10million)

Sales pipeline agreed on March 31 up 45% from a year ago to £ 16.3million (2020: £ 11.3million)

Sales exchanges up 65% year over year to 4,077 (2020: 2,467)

Management of 15,000 rental properties as of March 31 (2020: 14,000)

Total number of offices 210 (2020: 204)


LSL Property Services has entered into a long-term agreement with TPFG to provide mortgage advice and protection services to all of its franchisees.

LSL will provide digital and in-person mortgage and protection advice to TPFG’s extensive network of more than 430 real estate agencies, including those newly formed as a result of its merger with Hunters Property.

The agreement is for a minimum of five years and means LSL will provide digital and face-to-face mortgage advice and protection to clients of TPFG and TPFG franchisees.

TPFG franchisees will benefit from a range of options through LSL’s PRIMIS mortgage network. Franchisees will be offered the option of either hiring their own mortgage advisor and becoming a designated PRIMIS representative, or referring their clients to existing PRIMIS appointed representatives, including internal LSL mortgage brokers.

LSL is already one of the largest providers of mortgage intermediary services and mortgage advice and protection to real estate agency clients, realizing around £ 32.6 billion in mortgages in 2020. It currently represents around 9 % of the total purchase and remortgage market with more than 2,600 advisors.

LSL says this agreement underscores the opportunity to continue growing its financial services business, leveraging LSL’s existing leadership positions in the mortgage advisory market.

This contract will increase the profits of the financial services division after an initial investment period of 12 to 18 months requiring one-time transition and integration costs.

Gareth samples

CEO Gareth Samples said: “2020 and the year to date have seen the Group reach many important milestones and I am very happy with the results we have achieved.”

“While navigating the global pandemic, we have been resourceful in protecting the business in the first half of the year and have the right strategy in place to take advantage of the buoyant housing market throughout the year. . Our franchisees have worked incredibly hard throughout the year and I would like to thank our entire network and the core team for their continued dedication.

“The acquisition of Hunters after period end and the strategic partnership announced today with LSL have significantly strengthened our position in the market, and I am delighted to see what we can achieve in the year ahead. Going forward, we have a strengthened platform to focus on growing our financial services capacity, build on the success of our hybrid offering, EweMove, and leverage the existing strengths of Hunters and TPFG in the field. whole of the enlarged Group. We are confident that our success will be supported by our unmatched management team, scale, excellent brand stability and strong relationships with our franchisees.

A video from CEO Gareth Samples providing an overview of the results is available to watch by Click here.

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