TPFG confident it can 'navigate difficult backdrop'

The Property Franchise Group (TPFG) is still expecting a strong 2022 after posting increased half-year revenues and profits this morning.

The listed agency brand said its revenues were up 18% to £3.1m and pre-tax profit rose 9% to £3.8m.

Its sales agreed pipeline increased 15% to £33.8m, while its franchise brands EweMove and Hunters were seeing more territories.

The Property Franchise Group PLC, the UK's largest property franchisor, is pleased to announce its interim results for the period ended 30 June 2022. 

Gareth Samples, chief executive of TPFG, said: “Reflecting on the first half of the year and the challenges businesses and consumers have faced, I am particularly delighted to report robust results for the Group’s half year period. 

“We have traded in line with the board’s expectations, against a comparative period in which we benefitted from the buoyant sales market. 

“While factors such as the cost-of-living crisis and inflation are driving a challenging macroenvironment, we are secure in the quality of our business and our ability to successfully navigate a more difficult backdrop. 

“We have an excellent team in place, a very experienced group of franchisees and a proven strategy, which we expect to continue delivering growth. 

“We are extremely well-placed in the current environment and have a substantial growth opportunity to capitalise on. Post period end activity indicates the second half will perform at least as strongly as the first and ahead of H2 2021. As a result, the board expects the full year results to be in-line with market expectations and this confidence is reflected in the interim dividend for 2022, which I am pleased to report is up 11% on 2021.”

Financial Highlights 

• Group revenue increased 18% to £13.1m (H1 2021: £11.1m)

• Management Service Fees increased 5% to £7.5m (H1 2021: £7.1m) 

• Adjusted operating margin 41% (H1 2021: 47%) 

• Adjusted EBITDA increased 8% to £5.7m (H1 2021: £5.3m)

• Profit before tax increased 9% to £3.8m (H1 2021: £3.5m) 

• Adjusted basic earnings per share of 14.1p (H1 2021: 15.3p). 

• Increased interim dividend by 11% to 4.2p (H1 2021: 3.8p)

Operational Highlights

• Sales agreed pipeline increased 15% to £33.8m (H1 2021: £29.5m) 

• Managing 74,000 rental properties (H1 2021: 73,000) 

• 8 acquisitions at the franchisee level (H1 2021: 5), added 1,001 managed properties (H1 2021: 647) contributing £1.0m (H1 2021 £0.5m) of managed income per annum to franchisee turnover 

• EweMove sold 19 new territories (H1 2021: 37), now totalling 178 territories 

• Hunters sold 5 personal agent territories (H1 2021: nil)