TPFG maintains positive outlook despite sales slump

The Property Franchise Group (TPFG) has said its multiple income streams will help it navigate the uncertain markets after it revealed a dip in sales.

A trading update from TPFG ahead of the publication of its interim results next month showed that its sales agreed pipeline decreased by 16% annually during the first half of 2023.

TPFG highlighted HMRC data showing UK property sales were down 20% annually in the first half of the year, which the company said was reflected in Hunters’ performance, while its other brands grew market share.

Group revenue increased 1% to £13.2m, while its performance was boosted by its lettings businesses, the update said.

Lettings management service fees (MSF) rose 12% annually during the period, offsetting a reduction form the sales cohort and contributing 61% of total MSF in the period.

This was up from 55% this time last year.

Gareth Samples, chief executive of TPFG, said: "We are pleased with our performance in the first half of 2023. The benefits of operating a focused franchise model with multiple income streams are reflected in these results, as we continue to demonstrate considerable resilience in the face of an uncertain macro-economic backdrop. 

“Whilst the board expects the macro-economic uncertainty to continue, it is confident that trading remains in line with expectations for the full year."