Belvoir Group sees business storm back as lockdown ends

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What Belvoir does

Belvoir Group PLC (LON:BLV) is the UK’s largest property lettings franchise.

Founded in 1995, the firm currently has over 300 offices managing around 69,000 properties.

The company also operates a financial services arm which provides its customers with mortgages and other property-related financial services products.

How it’s doing

In December, Belvoir updated that trading has been ahead of even its pre-coronavirus (COVID-19) expectations in the first ten months of 2020 as lettings and sales had bounced back strongly after the lockdown.

Gross profit in the property and the financial services divisions grew year-on-year by 10% and 11% respectively, the firm said, ad agreed house sales were running significantly ahead of the previous record level.

In financial services, the pipeline of written mortgages is also at a record level.

Overheads have fallen significantly and, as a result, Belvoir expects that its profit before tax will be comfortably ahead of management’s expectations with 62% of gross profits coming from recurring revenues.

What the boss says: Dorian Gonsalves, chief executive

“This year has demonstrated beyond doubt the incredible resilience of our franchise business model. 

“I am delighted that we are in a position to be able to reimburse staff for their earlier sacrifice, to repay the Government Covid subsidies and to make good the missed 2019 dividend for shareholders. 

 “2021 will present further challenges, however, we will start the year with strong sales and financial services pipelines, and we have confidence in our business model.”

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Inflexion points

  • Profits and revenues to grow for 23rd consecutive year
  • Housing market reopened earlier than expected
  • Swift recovery in lettings market

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