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The Property Franchise Group PLC has published its trading update for the six months ended 30 June 2025, reporting a marked upturn in sales activity and revenue increases.
The Group has delivered strong organic growth across its three divisions in the first half of the year, with full-year trading anticipated to be in line with market expectations.
The highlight figures of the report:
Franchising
- Group revenue increased 50% to £40.3m (H1 2024: £26.9m)
- 8% increase on a like for like basis
- Franchising revenue increased by 22% to £21.8m (H1 2024: £17.9m)
- Lettings MSF like-for-like increased 5% to £5.4m (H1 2024: £5.2m)
- Sales MSF like-for-like increased 18% to £3.7m (H1 2024: £3.2m)
- Financial Services revenue increased 54% to £12.2m (H1 2024: £7.9m)
- Licensing revenue increased by 514% to £6.3m (H1 2024: £1.0m)
- Cash generation of £15.2m in the six months ended 30 June 2025 with net debt of £10.8m, following deferred consideration for GPEA, advance tax payments and H1 working capital movements (FY24: £9.1m)
Lettings MSF in H1 grew 24% to £10.4m (H1 2024: £8.4m) as a result of 5% like-for-like growth and an additional two months of Belvoir Group revenues vs H1 2024.
The launch of the Group’s Privilege programme, a set of lettings-focused offerings designed to leverage the new scale of the Group, is expected to provide further opportunity for growth in H2 and into 2026.
H1 saw a strong upturn in sales activity, particularly in Q1 as buyers looked to avoid the change in stamp duty in March 2025. As a result, Sales MSF in H1 grew 28% to £5.0m (H1 2024: £3.9m) and 18% on a like-for-like basis.
Financial Services
The upturn in sales activity, combined with further decreases to the Bank of England base rate, led to a strong H1 for the Financial Services division, with revenue increasing by 54% to £12.2m (H1 2024: £7.9m). A total of 13,000 mortgages (H1 2024: 7,700) were written during the six months ended 30 June 2025.
Licensing
During H1, the Fine & Country business grew to 304 licensees (Dec 2024: 294), contributing to revenue growth on a proforma basis (which includes revenues earnt by Belvoir Group and GPEA within H1 2024 prior to acquisition) for the division of 5% to £6.3m (H1 2024: £6.0m).
During the six months ended 30 June 2025, despite the GPEA business performing in line with expectations, certain customary terms under the SPA were amended, which resulted in a reduction in the deferred consideration payable, down to a net £3.75m. The £1.25m difference is anticipated to be recognised as an exceptional gain in the reported profit before tax within the 2025 accounts.
Current trading and outlook
In anticipation of the upcoming Renters Rights Bill, the rollout of the Privilege programme, to both protect income and provide growth opportunities in H2 and beyond, is well underway and provides an option to landlords considering converting to the agent-managed property model.
The combination of further anticipated interest rate cuts and a strong sales pipeline of £43.5m (Dec 2024: £33.4m), balanced by a softening on new instructions provides confidence in delivering planned income in H2 in Sales MSF and for the Financial Services division.
Progress continues to be made on implementing AI opportunities across the Group to deliver revenue growth and profitability improvement opportunities across our networks with the first launch planned for H2.
The Group expects further growth across the divisions for the remainder of FY25 and expects to deliver trading in line with expectations for the full year.
CEO Gareth Samples commented: “I am delighted that the Group has continued to deliver a strong performance across all three divisions in the first half. With the significant growth and step change achieved in FY24, post acquisitions, we continue to deliver the anticipated synergies whilst leveraging our enhanced scale and capabilities to deliver greater value to our franchisees and members. Our resilient franchise business model, diversified revenue streams and continued strong cash generation provide the board with confidence for the year ahead.”
The company publishes its interim results on Wednesday 10 September 2025.
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