The Property Franchise Group reported record first-half revenue of £43.3 million, up 7%, as its franchising and financial services businesses continued growing despite subdued activity in the UK housing market.
Like-for-like revenue increased 4%, franchising revenue rose 8% to £24 million, and financial services revenue increased 10% to £13 million. Licensing revenue remained stable at £6.3 million, while recurring revenue represented 46% of group revenue.
Adjusted EBITDA increased 3% to £16.2 million, adjusted profit before tax rose 7% to £15.5 million, and adjusted basic earnings per share increased 8% to 19.8 pence. Net debt declined to £8.1 million from £10.9 million, while operating cash generation reached £13.4 million.
The board increased the interim dividend 10% to 7.7 pence per share.
TPFG’s Privilege program generated £1.2 million of revenue in its first full half year, and its Rent Guarantee product now protects more than 72,000 managed properties. The group’s overall managed portfolio remained around 149,000 properties, while its sales-agreed pipeline increased to £44.6 million.
The Financial Services division completed 13,400 mortgages, compared with 12,800 a year earlier. TPFG also completed the acquisition of Smart Advice Financial Solutions in January, invested in Meridian, the parent of Legal & General Surveying Services, and commercially launched its first AI-enabled products.
Those AI products are designed to improve franchisee productivity, inbound lead management and financial-services lead progression, with 14 franchisees already onboarded.
TPFG operates more than 1,900 outlets across 18 brands and is the UK’s largest multi-brand property franchisor. The group expects full-year trading to remain in line with market expectations.
KEY QUOTE:
“This has been another record first half for the Group, delivered in a subdued sales market, demonstrating the resilience of our diversified franchise model. We maintained our managed portfolio at 149,000 properties whilst supporting our network through the implementation of the Renters’ Rights Act, and pleasingly, Privilege delivered £1.2m of revenue in its first full half year.
“We have continued to broaden the platform, acquiring SAFS, investing in Meridian and launching our first AI-enabled products. Each extends our reach across the property transaction lifecycle and, together with our strong cash generation and the resilience of our business model, supports the 10% increase in the interim dividend.
“I would like to thank our franchisees, licensees, advisers, and colleagues across the Group for their continued hard work and commitment. Looking ahead, whilst the external environment remains uncertain, our diversified income streams and growing recurring revenue base give us confidence in delivering full year trading in line with market expectations.”
Gareth Samples, Chief Executive Officer of The Property Franchise Group
