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(Sharecast News) - Multi-brand property franchisor the Property Franchise Group announced a surge in revenue for the first half on Wednesday , following its merger with Belvoir Group and the acquisition of GPEA.
The AIM-traded firm said group revenue more than doubled, rising 104% to £26.9m compared to £13.2m in the same period last year.
It put the growth down to substantial increases in franchising and financial services, as well as the introduction of a new licensing revenue stream.
Key highlights from the first half included a 60% increase in management service fees (MSF) to £12.3m, and a 67% rise in the sales agreed pipeline, which reached £47.5m.
The group said its portfolio of managed rental properties grew to 152,500, significantly up from 77,000 a year earlier.
It said its merger with Belvoir, effective from March, contributed £12.2m in revenue during the period, with £7.1m coming from financial services.
Meanwhile, the acquisition of GPEA, completed at the end of May, added £1m in revenue.
Financial services commissions saw a 778% increase to £7.9m, driven entirely by Belvoir's contribution.
The group said its financial position included net debt of £14.3m, following a £20m loan to fund the GPEA acquisition.
Despite that, the recent cut in base interest rates was expected to positively impact sales and financial services in the second half of the year.
The board said the integration of Belvoir and GPEA was progressing smoothly, with the senior leadership restructuring largely complete and efforts underway to realise synergies and develop new revenue opportunities.
"The first half of 2024 has been transformational for our group, building on our track record of growth and completing two significant acquisitions which has created a substantially larger group with an international presence," said chief executive officer Gareth Samples.
"We are delighted with our organic revenue performance in the first half year and the contributions from each of our new businesses."
Samples said the company had a "very resilient and focused" franchise model and multiple income streams across 18 brands, including a "significantly enhanced, exciting" opportunity in financial services.
"With an improving pipeline and at least one interest rate reduction behind us, the board is confident that trading remains at least in line with market expectations for the full year."
At 1132 BST, shares in Property Franchise Group were up 2.2% at 464p.
Reporting by Josh White for Sharecast.com.
