Property Franchise Group has reported increased overall revenue to £11.4m for the year ended 31 December 2019, despite the wider lettings market being “adversely impacted by the tenant fee ban”.
Management Service Fees rose to £9.6m, compared with £9.4m during the previous year, and the number of tenanted managed properties serviced increased to c.58,000 at the year-end, up from 55,000 in 2018.
The Property Franchise Group said it “successfully navigated a difficult year” for UK residential property and performed in line with market expectations, delivering growth in both revenues and management service fees.
It added its franchisees “successfully mitigated” much of the impact of the tenant fee ban and achieved a record performance for lettings revenue. The group said its hybrid brand, EweMove, is also anticipated to show another significant improvement in profit over the prior year.
Additionally, during the financial year, the group’s assisted acquisitions programme supported 24 acquisitions by franchisees and added 2,381 managed properties.
Chief executive Ian Wilson said: “Our ability to deliver revenue growth and continued operational progress over the year, notwithstanding the market headwinds, is testament to the strength of our business and the franchise model.
“Looking ahead, there are numerous opportunities for us to now build further momentum across the business, as we continue to invest in our traditional brands and EweMove remains robust. In parallel we will focus our attention on growing a national mortgage brokerage network under our newly created financial services division.”
He added: “This is my last year with TPFG and I’m delighted that we have continued the journey that we started with our IPO in December 2013, having materially increased the dividend every year. We are dedicated to continuing to create value for all our stakeholders and are confident we will continue to do so in the year ahead.”