TIDMBLV
RNS Number : 7574U
Belvoir Lettings PLC
02 April 2019
2 April 2019
BELVOIR!
BELVOIR LETTINGS PLC
(the "Company", the "Group" or "Belvoir")
Preliminary results for the year ended 31 December 2018
Record Results and 22(nd) year of Continued Growth
Belvoir Lettings plc (AIM: BLV), the UK's largest property
franchise group, is pleased to announce its preliminary results for
the year ended 31 December 2018.
Financial highlights
-- 21% increase in Group revenue to GBP13.7m (2017: GBP11.3m)
-- Growth in management service fees (MSF) of 7% to GBP8.5m (2017: GBP7.9m)
-- Strong lettings bias reflected in gross profit ratio of 71%
lettings:18% sales:11% financial services (2017: 74%:19%:7%)
-- Exceptional credit of GBP0.8m on finalisation of Northwood earn out
-- 40% increase in profit before tax to GBP5.5m (2017: GBP3.9m)
-- Strong cash flow from operating activities of GBP4.6m (2017: GBP3.7m)
-- Increased year-end bank balance of GBP1.8m (2017: GBP1.4m)
-- Net debt of GBP9.6m (2017: GBP5.1m) following GBP4.2m
Northwood earn out settled in cash and the GBP4.0m MAB Glos cash
consideration. Net debt to adjusted EBITDA is 1.8.
-- Adjusted fully diluted EPS of 11.7p (2017: 10.7p)
-- Recommended final dividend up 9% to 3.8p (2017: 3.5p) giving
total dividend for the year of 7.2p (2017: 6.9p)
Operational highlights
-- Acquisition of MAB Glos, a network of 87 financial services
advisers operating through 64 offices
-- Further integration of Northwood into Group functions, reducing cost base by GBP0.2m p.a.
-- 26 (2017: 23) franchisee assisted acquisitions completed,
adding over GBP6.9m (2017: GBP3.3m) of network revenue; ahead of
GBP6.6m target
-- 8% increase in properties under management at 62,780 (2017: 58,020)
-- Average MSF per office up 8% to GBP28,333 (2017: GBP26,333)
-- Recruitment of ten (2017: six) new franchise owners
-- Net increase of 94 financial service advisers (including 87
MAB Glos advisers) to 123 (2017: 29)
-- Number of offices up to 365 (2017: 300)
-- Encouraging start to 2019
Dorian Gonsalves, Chief Executive Officer of Belvoir Lettings,
commented:
"The Group achieved another year of significant growth with
revenue up 21% to GBP13.7m (2017: GBP11.3m), outperforming both the
sales and lettings elements of the housing market and the financial
services market. The increase in our like-for-like lettings MSF of
2.6% outstripped the 1% rental index, and lettings were boosted
further by a 4.5% uplift from our assisted acquisitions programme
which performed ahead of our expectations. Meanwhile, our sales MSF
increased by 8.4% against the backdrop of a flat sales market in
which a 2% fall in the number of UK property transactions was
compensated by a modest increase of 2.5% in house prices. Revenue
from Brook, our 2017 financial services acquisition, increased by
20%, on a full year basis, compared with a 3.7% increase in the
value of gross mortgage advances.
2018 saw the Group invest further into financial services with
the acquisition of MAB Glos which has provided a platform for
Belvoir to build a nationwide network of financial advisers to work
with our franchise owners to maximise the sales of mortgages and
other property-related financial services to our customers.
Belvoir is uniquely positioned within the property sector,
benefiting from the agility of a franchise business model compared
with the larger corporate players, whilst providing our networks
with the Central Office systems and support, not available to the
smaller independent agents. Our value creating strategy has enabled
us to consistently deliver profit growth for over two decades and
achieve a threefold increase in profit before tax since 2014.
Belvoir is a strongly cash generative business with revenues
underpinned by the recurring 'annuity-style' lettings income stream
coupled with the diversification into complementary
property-related services, which will enable the Group to overcome
changes and outperform in the sector over the coming year."
For further details:
Belvoir Lettings PLC 01476 584900
Dorian Gonsalves, Chief Executive Officer investorrelations@belvoirlettings.com
Louise George, Chief Financial Officer
Cantor Fitzgerald Europe
Rick Thompson, Phil Davies, Will Goode 0207 894 7000
Buchanan 0207 466 5000
Charles Ryland, Victoria Hayns, Maddie Seacombe, Tilly Abraham belvoir@buchanan.uk.com
Note to Editors:
About Belvoir Lettings PLC
Founded in 1995 and listed on AIM in 2012 (BLV.L), Belvoir
operates a nationwide property franchise group with 365 offices
across four brands specialising in residential lettings, property
management, residential sales and property-related financial
services. With its Central Office in Grantham, Lincolnshire, the
Group manages 62,780 properties and reported revenue of GBP13.7m in
2018 making Belvoir the largest property franchise group in the
UK.
Chairman's statement
Belvoir achieved a 22(nd) year of uninterrupted profit growth
despite the backdrop of another challenging year for the property
industry with a flat sales market, the ongoing threat of the tenant
fee ban and the uncertainties surrounding Brexit.
I am pleased to report that the Belvoir Group significantly
increased profitability, once again showing how, as a franchising
network, it can rise above the challenges of the sector, and indeed
use them to capitalise on the business growth opportunities
available.
Performance
In 2018 revenue increased by 21% and profit before tax by 40%
driven by a strong performance from our property franchise network
and additional contributions from our recent financial services
acquisitions. These are impressive figures in a flat property
market which saw a modest UK rental index growth and a small
increase in house prices offset by a reduction in residential
property transactions. The Group's franchise owners continue to
thrive by taking advantage of the numerous growth opportunities
available to them, including the roll out of property sales, the
assisted acquisitions programme, the use of our strong branding and
marketing materials, and our growing financial services offering.
Whilst closures have been witnessed elsewhere in the sector, the
number of high street offices within our property network remains
at 300 with the average MSF per franchise office up to GBP28,333
(2017: GBP26,333) compared to just GBP19,753 in 2014. This increase
of 43% over four years is affirmatory of our focus on supporting
our franchisees to develop their businesses.
Governance
During the year the Board adopted the 2018 Quoted Companies
Alliance Corporate Governance Code (the "QCA Code") as the basis of
the Group's governance framework, in line with the London Stock
Exchange's changes to the AIM Rules requiring all AIM-listed
companies to adopt and comply with a recognised corporate
governance code.
Within the Belvoir Group we promote a culture of good governance
in dealing with all key stakeholders: our franchisees, our
financial advisers, our employees, our customers and our
shareholders. Our corporate governance structures and processes and
how they were applied throughout the year are reported upon in full
later in this report.
Board changes
Since my report last April, Andrew Borkowski has stepped down as
Non-Executive Director. I would like to thank Andrew for his
considerable contribution to the growth strategy of the Group over
the last four years. At the same time, I am delighted to welcome
Paul George who joined the Board last June as a Non-Executive
Director. Paul currently has executive responsibilities for
corporate governance and corporate reporting at the Financial
Reporting Council. His considerable experience and deep
understanding of these areas have further strengthened the
Board.
The Group has a stable and highly skilled team of Directors and
senior managers and as Chairman, I am indebted to them for their
leadership, loyalty, hard work and professionalism. Indeed, it is
this longevity and stability of the senior team that provides the
strong base from which the Group continues to grow and prosper in
this competitive environment.
Shareholder returns
The Group aims to offer a reliable income stream to investors
whilst also investing in the business to further its strategic
growth objectives. I am delighted to announce that our proposed
final dividend payment for 2018 will be 3.8p (2017: 3.5p) giving a
total dividend for the year of 7.2p (2017: 6.9p) in line with our
progressive dividend policy.
Outlook
The Board is confident that 2019 will see further opportunities
for growth for the Belvoir Group as the sector continues to
consolidate. It has finally been announced that the tenant fee ban
will come into effect in June; however, due to the steps we have
taken to mitigate the effects of the ban, the impact on Belvoir's
continuing growth will be significantly mitigated. Overall, I am
confident that the Belvoir Group will continue to grow in both size
and reputation during this coming exciting year, leading the way in
both the property and franchising industries.
Mike Goddard
Chairman
Operating review
The Group achieved another year of significant growth
outperforming both the sales and lettings elements of the housing
market and the property-related financial services market.
Performance
Management service fees (MSF), our main source of revenue from
our property franchisees, increased by 7.3% with growth across all
three brands both from lettings and sales. Our like-for-like
lettings growth of 2.6% was more than double the rental index of
1%(1) . Lettings were further boosted by 4.5% from our successful
assisted acquisition strategy. Against a backdrop of a 2%(2)
decrease in the number of UK property transactions and a modest
increase of 2.5%(3) in house prices, our MSF from sales increased
by 8.4%.
Financial services are of growing importance to the Group
following our acquisition of Brook and MAB Glos, and now represents
10% of gross profit. Brook, on a full-year comparative basis,
increased its revenue from financial services by 20% compared with
a 3.7%(4) increase in the value of gross mortgage advances.
The Group's network revenue, this being total revenue across all
our Group companies, franchisees and advisers, now stands at GBP83m
(2017: GBP74m) with 62,780 (2017: 58,010) properties under
management, marking another noteworthy year of growth.
Our strategic priorities
Our Group strategy is to develop individual businesses operating
within a network supported by a Central Office function. In recent
years, we have migrated from operating solely through our original
franchise network, Belvoir, to encompassing Newton Fallowell and
Northwood as part of a multi-brand strategy, and we still see
further strategic opportunities from bringing other significant
franchise networks into the Group.
Having built a platform of 300 franchised offices across our
three brands, we have targeted growth of those offices through
organic growth and franchisee-led acquisitions and additional
property-related income streams, and this is evidenced by the
significant average MSF per office growth.
Our assisted acquisitions strategy has proved to be an
incredible success story. In 2018 we processed 26 (2017: 23) deals
bringing on board a total of GBP6.9m (2017: GBP3.3m) additional
network revenue, which exceeded our target of GBP6.6m and doubled
for the second year running. The Group's Central Office lent
GBP0.6m to facilitate these deals which was 9% of total
consideration. At the year end there were a further 81 franchise
owners registered on our assisted acquisitions programme and 24
opportunities under consideration.
Financial services is the first step in our broader strategy of
bringing other property-related services into the Group. Brook and
MAB Glos provide the platform for building a nationwide network of
financial advisers to maximise the penetration of mortgages and
other property-related financial services to our customers, to the
mutual benefit of the advisers themselves, our franchisees and the
wider Group.
Creating value
We believe that the creation of value for our shareholders is
deliverable through the creation of value for our franchisees and
financial advisers, and it is this belief that underpins the
strategies outlined above. There are economies of scale in
operating a larger network and our focus on the growth of existing
offices can be achieved with minimal increase in overheads. The
Group has consistently delivered profit growth, and since 2014
adjusted profit before tax has increased three-fold to GBP5.5m
(2014: GBP1.8m) and adjusted earnings per share has more than
doubled to 12.4p (2014: 5.6p). Our dividend of 7.2p (2017: 6.9p)
with cover at 1.8x provides a strong and reliable yield for our
investors, whilst retaining funding for the Group's growth
strategy.
Our marketplace
House price increases and rental growth were both at
historically low levels nationally. House price inflation of
2.5%(3) was the lowest annual growth since July 2013 and the rental
index of 1%(1) was the lowest reported by the ONS over the last
seven years. However, within these national figures, there were
significant regional variations. The uncertainty caused by the
potential impact of Brexit has had a disproportionate impact on the
property market in London with house prices falling by 0.6%(3) and
rents increasing by just 0.2%(1) . By comparison the East and West
Midlands reported the largest and second largest rent increases at
2.5%(1) and 1.8%(1) , and house prices in these regions also
performed well up 4.2%(3) and 5.2%(3) respectively. Belvoir has
benefited from the regional variations as 35% of our property
franchise offices are based in the Midlands, including our strong
estate agency brand, Newton Fallowell, and our exposure to the
London market is limited to 7% of our offices.
The proportion of households in the private rented rector (PRS)
has remained static and whilst the changes to the tax regime for
landlords has seen landlord instructions decline, this has not been
at the rate expected. Further legislative changes including the
tenant fee ban, compulsory client money protection for lettings
agents, and, in the longer term, the introduction of a redress
scheme for tenants of the 52% of private landlords managing their
own portfolio will undoubtedly impact on the lettings market in the
coming years.
Belvoir is well prepared for the tenant fee ban, which comes
into force on 1 June 2019 and is likely to have a significant
effect on the landscape of lettings agents. Furthermore, our
lettings agents are unaffected by the introduction of compulsory
client money protection on 1 April 2019 as this has been a
requirement of our franchisees for many years, so we will benefit
from all agents being required to operate on the same playing
field. We predict that up to 20% of agents which heavily rely on
tenant fees or do not hold client money in a separate account to
their trading account will either choose to sell their portfolios
or go out of business. Our franchisees see the opportunities that
consolidation in the market present and many are already working
with our acquisitions team to secure those businesses that become
available.
Outlook
Belvoir is uniquely positioned within the property sector
benefiting from the agility of a franchise business model compared
with the larger corporate players, whilst providing our networks
with the Central Office systems and support not available to the
smaller independent agents. Our revenue is underpinned by the
recurring "annuity-style" lettings income stream, and coupled with
this we have diversified into complementary property-related
services, which will enable the Group to overcome changes in the
sector over the forthcoming year.
Dorian Gonsalves
Chief Executive Officer
(1)
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/december2018
(2)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/771859/UK_Tables_Jan_2019__cir_.pdf
3
https://www.gov.uk/government/publications/uk-house-price-index-summary-december-2018/uk-house-price-index-summary-december-2018
(4) https://www.fca.org.uk/data/mortgage-lending-statistics
Financial review
Revenue
Group revenue in 2018 increased by 21% to GBP13.7m (2017:
GBP11.3m) reflecting the full year's impact of our 2017 acquisition
of Brook and the 2018 acquisition of MAB Glos.
MSF, our key underlying revenue stream, increased by 7.3% to
GBP8.5m (2017: GBP7.9m). Lettings MSF was up 7.1% of which 4.5%
resulted from Belvoir's successful assisted acquisitions programme
and 2.6% was attributable to like-for-like growth, and MSF from
property sales was up 8.4%.
Income from corporate-owned offices was down GBP0.4m as a result
of the disposal of three Belvoir offices to franchisees between
November 2017 and March 2018. As planned, at the year end there
were two corporate-owned offices, the original Grantham offices of
Belvoir and Newton Fallowell, which are both profitable and will be
retained for future development purposes.
Within our property franchise division the ratio of lettings to
sales remains at 80:20 (2017: 80:20).
Revenue from franchise sales in 2018 was GBP0.2m (2017:
GBP0.3m). The Group's recruitment policy is geared towards bringing
on new franchise owners via a resale of an existing franchised
territory or into a "hot start" where a portfolio acquisition is
executed at the time of opening, providing our new franchise owners
a launch pad. During 2018, we processed ten (2017: five) resales
and opened in six (2017: nine) new territories which included two
"hot starts" and the conversion of an independent agency.
Revenue from financial services benefited from a full year
ownership of Brook acquired July 2017 and of five weeks trading of
MAB Glos acquired November 2018. As a result revenue from financial
services is up three-fold to GBP3.6m (2017: GBP1.2m).
Gross profit
The inclusion of financial services over the past two years has
introduced gross profit into our reporting due to the commission
paid to the financial advisers being a direct cost. Gross profit
increased by 5% to GBP11.3m (2017: GBP10.8m).
The greater significance of financial services to the Group is
evidenced by our gross profit ratio by business activity of
lettings to sales to financial services being 71%:18%:11% (2017:
74%:19%:7%).
Administrative expenses
Non-exceptional administrative expenses increased by GBP0.1m to
GBP6.6m (2017: GBP6.5m). The incremental cost of operating Brook
for a full year (2017: 24 weeks) and one month of MAB Glos added
GBP0.3m. This was mitigated by GBP0.5m cost savings due to further
restructuring within Northwood and from the franchising out of
three corporate offices. Also, within administrative expenses there
is a charge of GBP0.2m (2017: GBP0.1m) associated with the share
options issued to Directors and certain staff between 2014 and
2018. Full disclosure is detailed in note 28 to the accounts.
Exceptional administrative expenses of GBP0.2m (2017: GBP0.3m)
include GBP0.1m relating to legal and professional fees associated
with the acquisition of MAB Glos (2017: GBP0.1m in relation to the
acquisition of Brook) and GBP0.1m (2017: GBP0.1m) in relation to
Northwood restructuring costs as further functions were
transferred. Further transaction costs of GBP0.2m were incurred in
2017 on an abortive merger offer.
Operating profit
Operating profit was GBP4.5m (2017: GBP3.9m), an increase of 16%
over the prior year.
Other income
Other income of GBP0.1m (2017: GBPnil) related to the valuation
of share options in Mortgage Advice Bureau (Holdings) plc, arising
from the acquisition of Newton Fallowell Limited and Brook
Financial Services Limited.
Exceptional items
Exceptional items include a credit of GBP0.8m (2017: charge of
GBP0.1m). This reflected the change in fair value to contingent
consideration following the final settlement of the Northwood
consideration which was based on performance during the year to 31
May 2018.
Profit before taxation
Profit before taxation of GBP5.5m (2017: GBP3.9m) is after
interest receivable on franchisee loans of GBP0.3m (2017: GBP0.3m),
which is regarded by the Group as part of its ongoing operations to
extend the network reach.
Taxation
The effective rate of corporation tax for the year was 20.2%
(2017: 24.2%). In 2017 the effective rate of corporation tax was
higher due to GBP0.3m of exceptional legal and professional costs
associated with acquisitions and GBP0.1m of deemed interest on
contingent consideration not being an allowable deduction from
profits for tax purposes. By comparison the effective rate of
corporation tax in 2018 has been reduced by an exceptional credit
of GBP0.8m relating to the change in fair value to contingent
consideration not being allowable for tax purposes.
Earnings per share
Basic earnings per share was up 45% to 12.5p (2017: 8.6p) based
on an average number of shares in issue in the year of 34,938,606
(2017: 34,638,939). When diluted to incorporate 2,171,073 (2017:
1,830,399) share options, the earnings per share was 11.8p (2017:
8.1p).
Adjusted basic earnings per share of 12.4p (2017: 11.3p)
reflects net adjustments of GBP0.04m credit (2017: GBP0.9m charge)
for exceptional administrative costs, share-based payments,
amortisation of acquired intangibles, profit/(loss) on disposal of
corporate offices and adjustments relating to the Northwood
contingent consideration. The adjusted diluted earnings per share
was 11.7p (2017: 10.7p).
The profit attributable to owners was up 48% to GBP4.4m (2017:
GBP3.0m).
Dividends
The Board is proposing a final dividend for 2018 of 3.8p per
share (2017: 3.5p). Together with the interim dividend of 3.4p paid
to shareholders on 2 November 2018 this equates to a total dividend
for the year of 7.2p per share (2017: 6.9p), a modest increase in
line with the Board's progressive dividend policy. Over the past
five years the dividend cover has increased from 1 to 1.8x,
reflecting the Board's aim to offer a reliable and growing income
stream to investors whilst also investing in the business to
further its strategic growth objectives.
Subject to shareholders' approval at the AGM on 16 May 2019, the
dividend will be paid on 20 May 2019 based upon the register on 12
April 2019. The ex-dividend date will be 11 April 2019.
Cash flow
The net cash inflow from operations was GBP4.6m (2017: GBP3.7m)
reflecting the enlarged Group.
The net cash used in investing activities was GBP6.4m (2017:
GBP0.9m):
-- On 26 November 2018 the Group acquired the entire share
capital of MAB (Gloucester) Limited, a network of specialist
mortgage advisers, for cash consideration of GBP4.0m; the net cash
flow impact was GBP3.3m after settlement of certain vendor-related
balances on completion
-- The Newton Fallowell Grantham lettings franchise was acquired
for GBP0.3m and brought into the corporate-owned Newton Fallowell
Grantham sales office.
-- The deferred and contingent consideration of GBP4.2m relating
to the acquisition of Northwood was settled in cash.
-- GBP0.05m was received following the sale of Belvoir Cumbria
and Belvoir Sleaford, which had been operated as corporate offices,
to new franchise owners.
-- During the year the net cash inflow from the franchise loan
book was GBP1.1m (2017: GBP0.1m).
-- GBP0.1m was returned from the Northwood escrow account to settle a tax liability.
During the year, loans advanced by the HSBC totalled GBP12.0m
out of which GBP6.5m settled the NatWest loan, and for which there
was an arrangement fee of GBP0.1m. GBP0.5m was repaid to HSBC
during the year. Finance costs were GBP0.2m (2017: GBP0.2m) and
dividend payments totalled GBP2.4m (2017: GBP2.4m). As a result,
net cash inflow from financing activities totalled GBP2.3m (2017:
net cash outflow of GBP3.1m).
Liquidity and capital resources
At the year end the Group had cash balances of GBP1.8m (2017:
GBP1.4m) and a term loan of GBP11.5m (2017: GBP6.4m). The Group
entered into new banking facilities with HSBC on 28 March 2018. As
part of that process the NatWest bank loan of GBP6.5m was settled
and a new revolving credit facility of GBP12.0m was put in its
place. This provided the Group with sufficient liquidity to settle
the Northwood earn-out and to acquire MAB Glos in cash. The HSBC
facility is repayable GBP0.9m per year in half-yearly repayments
until March 2023 followed by a final repayment of GBP7.9m.
Financial position
The Group continues to operate from a sound financial platform
and is strongly cash generative. This, together with the GBP1.8m
opening cash balance, will enable the Group to meet the bank loan
repayment of GBP0.9m in 2019. Also, the capital repayments from the
existing franchisee loan book will enable the Group to give further
financial assistance to franchisees acquiring local managed
lettings portfolios, which delivers both network growth and
favourable rates of return for the Group.
Key performance indicators
The Group uses a number of key financial and non-financial
performance indicators to measure performance. The Group also uses
alternative performance measures to improve comparability of
information between reporting periods and across the sector for
uncontrollable and one-off factors, which impact upon IFRS
measures, to aid the users of the annual report in understanding
the activity taking place across the Group's portfolio.
The Board has reviewed and updated the KPIs below to ensure that
they remain relevant to the Group's operations. Following the
Group's investment in two financial services businesses, the Board
has recognised the need to introduce new KPIs to track the
performance of the financial services division. Also, the assisted
acquisitions growth strategy is achieving increased success in the
territories affected, and so the average size of the franchise
offices is deemed by the Board to be as important an indicator of
progress as the number of offices itself. As such, the key
performance indicators have been extended to include the net
financial services commission as a key financial indicator, and the
average MSF per franchise office, the number of financial advisers
and the average commission per adviser as new key non-financial
indicators.
The key financial indicators are as follows:
-- management service fees;
-- net financial services commission;
-- adjusted net profit before tax; and
-- adjusted earnings per share.
The key non-financial indicators are as follows:
-- number of franchised offices;
-- number of managed properties;
-- average MSF per franchised office;
-- additional MSF arising from assisted acquisitions;
-- number of financial advisers; and
-- average commission per adviser.
The KPIs will be reported on in further detail in the Annual
Report.
Louise George
Chief Financial Officer
Group statement of comprehensive income
For the financial year ended 31 December 2018
2018 2017
Notes GBP'000 GBP'000
------------------------------------------------------ ----- -------- --------
Continuing operations
Revenue 3 13,702 11,299
Cost of sales 4 (2,372) (510)
------------------------------------------------------ ----- -------- --------
Gross profit 11,330 10,789
------------------------------------------------------ ----- -------- --------
Administrative expenses
Non-exceptional 4 (6,616) (6,540)
Exceptional 6 (169) (326)
------------------------------------------------------ ----- -------- --------
(6,785) (6,866)
------------------------------------------------------ ----- -------- --------
Operating profit 4,545 3,923
Changes in fair value to contingent consideration 6 809 (134)
Finance costs (226) (192)
Finance income 265 313
Other income 87 -
Profit before taxation 5,480 3,910
Taxation (1,106) (948)
------------------------------------------------------ ----- -------- --------
Profit and total comprehensive income for the
financial year 4,374 2,962
------------------------------------------------------ ----- -------- --------
Profit for the year attributable to the equity
holders of the parent company 4,374 2,962
------------------------------------------------------ ----- -------- --------
Basic earnings per share from continuing operations 8 12.5p 8.6p
Diluted earnings per share from continuing operations 8 11.8p 8.1p
------------------------------------------------------ ----- -------- --------
The Group's results shown above are derived entirely from
continuing operations.
The accompanying notes form an integral part of these condensed
consolidated financial statements.
Statements of financial position
As at 31 December 2018
Group Company
-------------------------------------- ----- ------------------- --------------------
Restated 2017
2018 2017 2018 GBP'000
Notes GBP'000 GBP'000 GBP'000
-------------------------------------- ----- --------- -------- --------- ---------
Assets
Non-current assets
-------------------------------------- ----- --------- -------- --------- ---------
Intangible assets 29,156 26,162 - -
Investments - - 39,722 39,533
Financial assets 159 - - -
Property, plant and equipment 646 635 35 45
Trade and other receivables 2,768 3,617 - -
-------------------------------------- ----- --------- -------- --------- ---------
32,729 30,414 39,757 39,578
Current assets
-------------------------------------- ----- --------- -------- --------- ---------
Trade and other receivables 3,729 2,813 6,490 4,931
Cash and cash equivalents 1,798 1,350 214 226
-------------------------------------- ----- --------- -------- --------- ---------
5,527 4,163 6,704 5,157
-------------------------------------- ----- --------- -------- --------- ---------
Total assets 38,256 34,577 46,461 44,735
-------------------------------------- ----- --------- -------- --------- ---------
Liabilities
Non-current liabilities
-------------------------------------- ----- --------- -------- --------- ---------
Trade and other payables - - - -
Interest-bearing loans and borrowings 9 10,452 5,578 10,452 5,578
Deferred tax 2,018 1,989 6 8
-------------------------------------- ----- --------- -------- --------- ---------
12,470 7,567 10,458 5,586
Current liabilities
-------------------------------------- ----- --------- -------- --------- ---------
Trade and other payables 2,499 6,137 1,169 5,657
Interest-bearing loans and borrowings 9 925 866 925 866
Tax payable 769 566 - -
-------------------------------------- ----- --------- -------- --------- ---------
4,193 7,569 2,094 6,523
-------------------------------------- ----- --------- -------- --------- ---------
Total liabilities 16,663 15,136 12,552 12,109
-------------------------------------- ----- --------- -------- --------- ---------
Total net assets 21,593 19,441 33,909 32,626
-------------------------------------- ----- --------- -------- --------- ---------
Equity
Shareholders' equity
-------------------------------------- ----- --------- -------- --------- ---------
Share capital 10 349 349 349 349
Share premium 10 12,006 12,006 12,006 12,006
Share-based payments reserve 337 148 337 148
Revaluation reserve 162 162 (50) (50)
Merger reserve (5,774) (5,774) 8,101 8,101
Retained earnings 14,513 12,550 13,166 12,072
-------------------------------------- ----- --------- -------- --------- ---------
Total equity 21,593 19,441 33,909 32,626
-------------------------------------- ----- --------- -------- --------- ---------
The Company made a profit after tax of GBP3,505,000 (2017:
GBP3,508,000).
The accompanying notes form an integral part of these condensed
consolidated financial statements.
Statements of changes in equity
For the financial year ended 31 December 2018
Group
Share-based
Share Share payments Revaluation Merger Retained Total
capital premium reserve reserve reserve earnings equity
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 1 January
2017 336 10,583 76 162 (5,774) 11,948 17,331
Changes in equity
Issue of equity share
capital 10 13 1,423 - - - - 1,436
Share-based payments 5 - - 72 - - - 72
Dividends 7 - - - - - (2,360) (2,360)
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Transactions with owners 13 1,423 72 - - (2,360) (852)
Profit and total comprehensive
income for the financial
year - - - - - 2,962 2,962
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 31 December
2017 349 12,006 148 162 (5,774) 12,550 19,441
Issue of equity share
capital 10 - - - - - - -
Share-based payments 5 - - 189 - - - 189
Dividends 7 - - - - - (2,411) (2,411)
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Transactions with owners - - 189 - - (2,411) (2,222)
Profit and total comprehensive
income for the financial
year - - - - - 4,374 4,374
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 31 December
2018 349 12,006 337 162 (5,774) 14,513 21,593
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Company
Share-based
Share Share payments Revaluation Merger Retained Total
capital premium reserve reserve reserve earnings equity
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 1 January
2017 336 10,583 76 (50) 8,101 10,924 29,970
Changes in equity
Issue of equity share
capital 10 13 1,423 - - - - 1,436
Share-based payments 5 - - 72 - - - 72
Dividends 7 - - - - - (2,360) (2,360)
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Transactions with owners 13 1,423 72 - - (2,360) (852)
Profit and total comprehensive
income for the financial
year - - - - - 3,508 3,508
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 31 December
2017 349 12,006 148 (50) 8,101 12,072 32,626
Issue of equity share
capital 10 - - - - - - -
Share-based payments 5 - - 189 - - - 189
Dividends 7 - - - - - (2,411) (2,411)
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Transactions with owners - - 189 - - (2,411) (2,222)
Profit and total comprehensive
income for the financial
year - - - - - 3,505 3,505
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
Balance at 31 December
2018 349 12,006 337 (50) 8,101 13,166 33,909
------------------------------- ----- -------- -------- ----------- ----------- -------- --------- --------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
Statements of cash flows
For the financial year ended 31 December 2018
Group Company
------------------------------------------- ----- ------------------ ------------------
2018 2017 2018 2017
Notes GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------- ----- -------- -------- -------- --------
Operating activities
------------------------------------------- ----- -------- -------- -------- --------
Cash generated from/(used in) operating
activities 11 5,612 4,612 (2,216) 2,183
Tax paid (1,018) (912) - -
------------------------------------------- ----- -------- -------- -------- --------
Net cash flows generated from/(used
in) operating activities 4,594 3,700 (2,216) 2,183
Investing activities
------------------------------------------- ----- -------- -------- -------- --------
Acquisitions net of cash acquired 12 (3,595) (1,854) - (3,647)
Working capital and cash introduced
by companies acquired - 29 - -
Deferred and contingent consideration (4,236) (76) (4,236) (76)
Capital expenditure on property, plant
and equipment (140) (114) (2) (52)
Disposal of corporate offices 45 324 - -
Franchisee loans granted (729) (681) - -
Loans repaid by franchisees 1,806 761 - -
Finance income received 265 313 4 -
Return of funds from escrow 145 434 145 434
Dividends received - - 4,000 4,445
------------------------------------------- ----- -------- -------- -------- --------
Net cash flows (used in)/generated
from investing activities (6,439) (864) (89) 1,104
Financing activities
------------------------------------------- ----- -------- -------- -------- --------
Bank loan advance 12,000 - 12,000 -
Loan repayments (7,000) (525) (7,000) (525)
Equity dividends paid 7 (2,411) (2,360) (2,411) (2,360)
Finance costs (296) (192) (296) (192)
Net cash generated from/(used in)
financing activities 2,293 (3,077) 2,293 (3,077)
------------------------------------------- ----- -------- -------- -------- --------
Net change in cash and cash equivalents 448 (241) (12) 210
Cash and cash equivalents at the beginning
of the financial year 1,350 1,591 226 16
------------------------------------------- ----- -------- -------- -------- --------
Cash and cash equivalents at the end
of the financial year 1,798 1,350 214 226
------------------------------------------- ----- -------- -------- -------- --------
The accompanying notes form an integral part of these condensed
consolidated financial statements.
Notes to the condensed consolidated financial statements
For the financial year ended 31 December 2018
1 Approval
This announcement was approved by the Board of Directors on 2
April 2019.
2 Basis of preparation
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31 December 2018
or 2017, but is derived from those accounts. Statutory accounts for
2017 have been delivered to the Registrar of Companies and those
for 2018 will be delivered following the Company's Annual General
Meeting. The auditors have reported on those accounts: their
reports were unqualified, did not draw attention to any matters by
way of emphasis and did not contain a statement under Sections
498(2) or (3) of the Companies Act 2006.
The Group and Company financial statements have been prepared
under the historical cost convention with the exception of the
freehold property which has been revalued and financial assets
which are included at fair value through profit or loss. Being
listed on AIM, the Company is required to present its consolidated
financial statements in accordance with International Financial
Reporting Standards (IFRS) and IFRS Interpretations Committee
(IFRIC) interpretations as adopted by the European Union and with
the Companies Act 2006 applicable to companies reporting under
IFRS.
The finalisation of the fair value exercise carried out on the
acquisition of Brook has resulted in an adjustment to reverse an
accrual of GBP325,000 reported in 2017. The 2017 statement of
financial position has been restated to reflect this. This has no
impact on the profit before taxation for that year.
Standards adopted for the first time
A number of new and revised standards, including IFRS 9 and 15,
are effective for annual periods beginning on or after 1 January
2018. Adoption of these standards, on a modified retrospective
basis, has not had an impact on the Group's financial statements,
except the following, set out below:
-- IFRS 9 Financial Instruments came into effect on 1 January
2018 and impacted the rules relating to the classification,
measurement and impairment of financial assets. The Group holds all
financial assets with the intention of collecting the contractual
cash flows, and no contractual terms have failed the "solely
payments of principal and interest" test. However, moving from the
"incurred credit loss" model under IAS 39 to the "expected credit
loss model" has given rise to an additional bad debt provision of
GBP61,000.
-- IFRS 15 Revenue from Contracts with Customers came into
effect on 1 January 2018 replacing IAS 18 Revenue and related
interpretations. It dealt with revenue recognition and established
principles for reporting useful information to users of financial
statements about the nature, amount, timing and uncertainty of
revenue and cash flows arising from an entity's contracts with
customers. Revenue is recognised when a customer obtains control of
a good or service and thus has the ability to direct the use and
obtain the benefits from the good or service. The Group has carried
out a review of existing contractual arrangements as part of this
process to identify the customer contracts, the performance
obligations, the transaction price and when the performance
obligation is satisfied, and has determined that there was no
material impact on the Group's revenue streams as set out in note
2.
Standards, amendments and interpretations to existing standards
that are not yet effective
There is one new standard effective for annual periods beginning
after 1 January 2019 which has an impact on the Group; this being
IFRS 16 Leases which replaces IAS 17 Leases and related
interpretations. The Group intends to apply the simplified
transition approach and will not restate comparative amounts for
the year ended 31 December 2018. All right-of-use assets will be
measured at the amount of the lease liability on adoption, adjusted
for any prepaid or accrued lease expenses. This standard has not
been applied in preparing these statements but will have an effect
on the financial statements of the Group or Company as set out
below:
IFRS 16 Leases addresses the definition of a lease, recognition
and measurement of leases, and establishes principles for reporting
useful information to users of financial statements about the
leasing activities of both lessees and lessors. A key change
arising from IFRS 16 is that most operating leases will be
accounted for on balance sheet for lessees. The Directors have
reviewed the contracts for all property, vehicle and equipment
leases held by the Group to identify any additional lease
arrangements that would need to be recognised under IFRS 16. As a
result, approximately GBP0.4m would be recognised as additional
tangible fixed assets together with an additional lease liability
as of 1 January 2019, and the estimated 2019 operating charge of
GBP0.1m would be replaced by an estimated depreciation and an
interest charge of GBP0.1m. This is not considered to be materially
different to our reporting of operating profit.
There are no other new standards, amendments to existing
standards or interpretations that are effective as at 31 December
2018 which have a significant impact on the Group.
3 Segmental information
The Executive Committee of the Board, as the chief operating
decision maker, reviews financial information for and makes
decisions about the Group's overall franchising business. In the
year ended 31 December 2018 the Board identified two operating
segments, that of franchisor of property agents and
property-related financial services.
The Directors consider gross profit as the key performance
measure. The reported segment is consistent with the Group's
internal reporting for performance measurement and resources
allocation.
Management does not report on a geographical basis and no
customer represents greater than 10% of total revenue in either of
the periods reported. The Directors believe there to be: three
material property franchise income streams, which are management
service fees, revenue from corporate-owned offices and fees on the
sale or resale of franchise territory fees; and one material
financial services income stream, which is commission receivable on
financial services. These revenue streams are split as follows:
Lettings Property sales Total revenue
------------------------------ ------------------ ------------------ ------------------
2018 2017 2018 2017 2018 2017
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- -------- -------- -------- --------
Management service fees 7,107 6,634 1,349 1,244 8,456 7,878
Corporate-owned offices 481 756 540 646 1,021 1,402
------------------------------ -------- -------- -------- -------- -------- --------
7,588 7,390 1,889 1,890 9,477 9,280
------------------------------ -------- -------- -------- --------
Initial franchise fees
and other resale commissions 198 310
Other income 468 514
------------------------------ -------- -------- -------- -------- -------- --------
Franchise property division 10,143 10,104
------------------------------ -------- -------- -------- -------- -------- --------
Commission receivable
on financial services 3,559 1,195
------------------------------ -------- -------- -------- -------- -------- --------
Financial services division 3,559 1,195
Total revenue 13,702 11,299
------------------------------ -------- -------- -------- -------- -------- --------
Gross profit for the two divisions is split as follows:
Gross profit
---------------------------- ------------------
2018 2017
GBP'000 GBP'000
---------------------------- -------- --------
Property franchise division 10,143 10,104
Financial services division 1,187 685
---------------------------------------- -------- --------
Total gross profit 11,330 10,789
---------------------------------------- -------- --------
Profit for the financial year
The parent company has taken advantage of Section 408 of the
Companies Act 2006 and has not included its own statement of
comprehensive income in these financial statements. The profit on
ordinary activities after taxation of the Company for the year was
GBP3,505,000 (2017: GBP3,508,000).
4 Cost of sales and administrative expenses
Group
Cost of sales and administrative expenses (non-exceptional) by
nature:
2018 2017
GBP'000 GBP'000
------------------------------------------------------ -------- --------
Staff costs 3,880 4,013
Depreciation and amortisation 581 619
Marketing 326 365
Auditor's remuneration
- Fees payable to the Company's auditor for the audit
of the Company's annual accounts 53 46
- Tax compliance services 16 14
- Statutory audit of subsidiaries 45 42
Operating lease expenditure 247 235
Financial services commission 1,694 363
Other cost of sales and administrative expenses 2,146 1,353
------------------------------------------------------ -------- --------
8,988 7,050
------------------------------------------------------ -------- --------
5 Share-based payments
Administrative expenses includes a charge of GBP189,000 (2017:
GBP72,000) after valuation of the Company's employee share options
schemes in accordance with IFRS 2 'Share-based payments'. Under
this standard, the fair value of the options at the grant date is
spread over the vesting period. These items have been added back in
the statement of changes in equity.
6 Exceptional items
Group
A total credit of GBP640,000 (2017: charge of GBP460,000) in
relation to exceptional items in the year arose from:
2018 2017
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Transaction costs on acquisition 104 87
Transaction costs on abortive merger offer - 191
Restructuring costs 65 48
-------------------------------------------------- -------- --------
Exceptional administration costs 169 326
Changes in fair value to contingent consideration (809) 134
(640) 460
-------------------------------------------------- -------- --------
Exceptional administration costs include GBP104,000 of
professional fees in relation to the acquisition of MAB Glos and
GBP65,000 of redundancy costs incurred as further elements of the
Northwood operations were incorporated into Group functions.
Other exceptional items comprise a GBP809,000 reduction in the
fair value of contingent consideration of Northwood following the
end of the two-year earn out period.
These costs are deemed to be non-recurring.
7 Dividends
Group
2018 2017
GBP'000 GBP'000
---------------------------------------------------------- -------- --------
Final dividend for 2017
3.5p per share paid 31 May 2018 (2017: 3.4p per share
paid 31 May 2017) 1,223 1,172
Interim dividends for 2018
3.4p per share paid 2 November 2018 (2017: 3.4p per share
paid 27 October 2017) 1,188 1,188
---------------------------------------------------------- -------- --------
Total dividend paid 2,411 2,360
---------------------------------------------------------- -------- --------
The Directors propose a final dividend of 3.8p per share
totalling GBP1,328,000, payable on 20 May 2019. As this remains
conditional on shareholders' approval, provision has not been made
in these financial statements.
8 Earnings per share
Group
Basic earnings per share is calculated by dividing the profit
for the financial year by the weighted average number of ordinary
shares in issue during the year. Options over ordinary shares and
rights of conversion are described in note 28. The calculation of
diluted earnings per share is derived from the basic earnings per
share, adjusted to allow for the issue of shares under these
instruments.
The Directors use adjusted earnings before exceptional items,
amortisation of acquired intangibles and share-based payment
expense as a measure of ongoing profitability and performance. In
this way, the adjusted measure eliminates non-recurring
transactions and significant non-cash charges which can
disproportionately affect the interpretation of ongoing performance
and profitability.
Adjusted earnings per share and diluted adjusted earnings per
share are calculated in the same way as basic and diluted earnings
per share but using the adjusted earnings instead of the profit for
the financial year.
2018 2017
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Profit for the financial year 4,374 2,962
Exceptional items (640) 460
Amortisation of acquired intangibles 422 422
Share-based payment charge 189 72
Tax on deductible exceptional items (10) (10)
----------------------------------------------------- -------- --------
Adjusted profit for the financial year 4,335 3,906
----------------------------------------------------- -------- --------
Weighted average number of ordinary shares - basic 34,939 34,639
Weighted average number of ordinary shares - diluted 37,110 36,469
----------------------------------------------------- -------- --------
Basic earnings per share 12.5p 8.6p
Diluted earnings per share 11.8p 8.1p
----------------------------------------------------- -------- --------
Adjusted basic earnings per share 12.4p 11.3p
Adjusted diluted earnings per share 11.7p 10.7p
----------------------------------------------------- -------- --------
9 Maturity of borrowings and net debt
2018 2017
GBP'000 GBP'000
---------------------------------------- -------- --------
Group and Company
Repayable in less than six months 658 615
Repayable in seven to twelve months 572 434
---------------------------------------- -------- --------
Current portion of long-term borrowings 1,230 1,049
Repayable in years one to five 11,279 5,938
---------------------------------------- -------- --------
Total borrowings 12,509 6,987
Less: interest included (1,132) (543)
---------------------------------------- -------- --------
Total debt 11,377 6,444
---------------------------------------- -------- --------
Less: cash and cash equivalents (1,798) (1,350)
---------------------------------------- -------- --------
Net debt 9,579 5,094
---------------------------------------- -------- --------
Borrowings comprise a term loan of GBP11,475,000 (2017:
GBP6,475,000) secured by a fixed and floating charge over the Group
assets and is repayable in half yearly instalments of GBP445,000
from June 2019 with a final payment of GBP7,868,000 in March 2023
and bears interest at 2.2% over the LIBOR rate. The arrangement fee
of GBP144,000 is being amortised over the life of the loan, which
gave rise to a charge to the profit and loss account of GBP22,000
(2017: GBP9,000). All bank covenants were complied with throughout
the year.
10 Called up share capital
2018 2017
-------------------------------- ------------------- -------------------
Number GBP'000 Number GBP'000
-------------------------------- ---------- ------- ---------- -------
Group and Company
Allotted, issued and fully paid
Ordinary shares of 1p each 34,938,606 349 34,938,606 349
-------------------------------- ---------- ------- ---------- -------
Group and Nominal Share
Company share capital premium
Number GBP'000 GBP'000
----------------------------------- ---------- -------------- --------
At 1 January 2017 33,660,160 336 10,583
Issue of shares during the year:
23 January 2017 - share price 117p 803,284 8 928
12 July 2017 - share price 105p 475,162 5 495
----------------------------------- ---------- -------------- --------
At 31 December 2017 34,938,606 349 12,006
At 31 December 2018 34,938,606 349 12,006
----------------------------------- ---------- -------------- --------
11 Reconciliation of profit before taxation to cash generated
from operations
Group
2018 2017
GBP'000 GBP'000
------------------------------------------------------------- -------- --------
Profit before taxation 5,480 3,910
Depreciation and amortisation charges (including impairment) 581 619
Share-based payment charge 189 72
Impairment of franchisee loan book 272 -
Impairment on sale of Newton Fallowell Newark trade and
assets (note 26) 88 -
Loss on disposal of corporate offices 15 -
Changes in fair value to contingent consideration (809) 134
Amortisation of debt costs 52 -
Finance costs 226 192
Finance income (265) (313)
MAB share option recognition and related income (87) -
------------------------------------------------------------- -------- --------
5,742 4,614
(Increase)/decrease in trade and other receivables (1,393) 176
Increase/(decrease) in trade and other payables 1,263 (178)
Cash generated from operations 5,612 4,612
------------------------------------------------------------- -------- --------
Company
2018 2017
GBP'000 GBP'000
--------------------------------------------------------- -------- --------
Profit before taxation 3,504 3,516
Dividend received (4,000) (4,445)
Changes in fair value to contingent consideration (809) 134
Finance costs 223 192
Depreciation and amortisation charges 12 10
--------------------------------------------------------- -------- --------
(1,070) (593)
(Increase)/decrease in trade and other receivables (1,559) 3,356
Increase/(decrease)/increase in trade and other payables 413 (580)
--------------------------------------------------------- -------- --------
Cash (used in)/generated from operations (2,216) 2,183
--------------------------------------------------------- -------- --------
12 Acquisitions
On 21 September 2018 Newton Fallowell Limited, a Group
subsidiary, acquired Uplong Limited for GBP370,000, which operated
the Newton Fallowell lettings franchise for Grantham and Newark.
The assets and trade of the Newark lettings portfolio were
immediately sold to Belvoir Newark for GBP88,000 and the remaining
assets and trade relating to the Grantham lettings portfolio were
hived up into Newton Fallowell Limited. The Newton Fallowell
corporate office in Grantham now operates both sales and lettings
out of the same premises.
On 26 November 2018 Brook, a Group subsidiary, acquired 100% of
the equity of MAB (Gloucester) Limited ("MAB Glos"), which, like
Brook, trades as an appointed representative of Mortgage Advice
Bureau, one of the UK's leading networks for mortgage
intermediaries. As part of the Belvoir Group financial services
division, MAB Glos will develop its network of financial advisers
to offer mortgage products and services across all Group networks,
increasing the Group's presence in the franchised property sector
and opening up additional growth opportunities. Total consideration
was GBP4,228,000. Net assets acquired included certain
vendor-related balances that were settled on completion leaving
acquired cash of GBP692,000. The acquisition was satisfied from
existing cash resources and the drawdown of existing bank
facilities.
In October 2018 Belvoir Property Management (UK) Limited took
back the Leeds South franchise which is now being managed on behalf
of the Group by a neighbouring franchise owner for a period of time
until a new franchise owner is appointed.
The above transactions met the definition of a business
combination and have been accounted for using the acquisition
method under IFRS 3. The assets and liabilities below are shown at
their book values which have been, in general, assessed as also
being the provisional fair values at acquisition. The exceptions
relate to the acquisition of MAB Glos for which fair value
adjustments were made of a GBP109,000 accrual for the provision of
unearned indemnity commission and GBP29,000 in recognition of the
valuation of MAB share options. There were no adjustments required
on trade debtors on acquisition.
Leeds
South Uplong MAB Glos Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------- -------- --------
Intangible assets 47 200 - 247
Financial assets - - 29 29
Trade and other receivables - 32 568 600
Cash and cash equivalents - 27 692 719
Deferred tax liabilities - (38) - (38)
Trade and other payables - (44) (258) (302)
--------------------------------- -------- -------- -------- --------
Identifiable net assets acquired 47 177 1,031 1,255
--------------------------------- -------- -------- -------- --------
Goodwill on acquisition - 105 3,197 3,302
--------------------------------- -------- -------- -------- --------
Consideration 47 282 4,228 4,557
--------------------------------- -------- -------- -------- --------
Consideration settled in cash 47 262 4,005 4,314
--------------------------------- -------- -------- -------- --------
Deferred consideration - 20 223 243
Total consideration 47 282 4,228 4,557
--------------------------------- -------- -------- -------- --------
The goodwill represents the value attributable to the new
businesses and the assembled and trained workforce. Deferred tax at
17% has been provided on the value of intangible assets defined as
customer contracts. Acquisition costs of GBP104,000 were incurred
and charged to exceptional items in the consolidated statement of
comprehensive income.
Uplong MAB Glos Total
GBP'000 GBP'000 GBP'000
----------------------------------- -------- -------- --------
Post acquisition financial results
Revenue 57 544 601
Profit before tax 27 91 118
----------------------------------- -------- -------- --------
If the acquisitions had completed on the first day of the
financial year, Group revenues would have been GBP17.3m and Group
profit before tax would have been GBP6.3m.
13 Posting of accounts
It is intended that the financial statements for the year ended
31 December 2018 will be made available to shareholders on the
company's website www.belvoirlettingsplc.com by 16 April 2019 and
will also be available thereafter at the registered office, The Old
Courthouse, 61a London Road, Grantham, NG31 6HR.
14 Annual General Meeting
The Annual General Meeting will be held at 10.00am on Thursday
16 May 2019 at the registered office, The Old Courthouse, 61a
London Road, Grantham, NG31 6HR
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR IBMLTMBBMBFL
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April 02, 2019 02:01 ET (06:01 GMT)
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