The Property Franchise Group Posts Record H1 Revenue and Profit, Lifts Dividend 10%

The Property Franchise Group (LON: TPFG), the UK’s largest multi-brand residential property franchisor behind Belvoir, Martin & Co, EweMove and Hunters, reported record first-half revenue and profit earlier today, alongside a 10% increase in its interim dividend to 7.7p.

Shares traded at 448.66p shortly after the announcement, close to flat against yesterday’s close of 450p, within a 52-week range of 338.32p to 581.63p. The muted reaction suggests markets had already priced in a solid update rather than treating the results as a surprise.

Group revenue rose 7% to £43.3m in the first half, from £40.3m a year earlier, with like-for-like revenue growth of 4%. Adjusted profit before tax climbed 7% to £15.5m, with adjusted earnings per share up 8% to 19.8p, as growth across the group’s three divisions offset the soft sales market.

Franchising revenue, the fees TPFG earns from its network of local agents, rose 8% to £24.0m. Financial services revenue grew 10% to £13.0m, boosted by the SAFS acquisition, while advisers arranged £2.7bn of mortgage lending, up 17% on the £2.3bn arranged a year earlier. Licensing revenue was flat at £6.3m.

Statutory profit before tax — the reported figure before management’s adjustments — fell 7% to £11.3m, down from £12.2m. That reflects the absence of a one-off gain booked last year and a higher share-based payments charge, a reminder that the “record” headline applies to the adjusted profit figure rather than the statutory one.

Chief executive Gareth Samples said: “This has been another record first half for the Group, delivered in a subdued sales market, demonstrating the resilience of our diversified franchise model.”

The board reiterated that full-year trading remains in line with market expectations. Net debt fell to £8.1m from £10.9m a year earlier, with cash conversion of 83%, underpinning the dividend increase even as statutory earnings declined.