Belvoir has revealed it received £250,000 of Government support to help get the agency franchise network through the coronavirus pandemic but is now reporting record levels of activity.
It comes as the company reported an 8% annual increase in revenue to £9.7m and gross profit increased by the same figure during the first half of the year to £6.7m.
The brand’s half-year report said the impact of Covid-19 on the group’s expected revenue was “substantially mitigated by a reduction in operating expenses and £250,000 of Government Covid-19 support.”
This support was made up of grants for nine corporate offices and support under the job retention scheme for 36 furloughed staff, all of whom are back working.
The update said there have been some redundancies but did not specify how many.
Management fees from lettings was relatively unchanged at £3.5m during the first half of the year but Belvoir said its fees from sales were down around 50% during the lockdown period between April and May but has since recovered, thanks in part to its acquisition of 12 Lovelle offices in 2019, to only 5% below last year.
Belvoir said instructions, sales agreed and new mortgages written since the market reopened have since exceeded all previous records.
This is expected to result in a strong fourth quarter for sales fees and financial services income.
Dorian Gonsalves, chief executive of Belvoir, said: “Given results are on track in the first half of the year, a promising start to the second half and a strong pipeline of agreed property sales and written mortgage business, the board is confident of meeting management’s pre-Covid expectations for the full year.
“As a reflection of the board’s confidence in the improving outlook, it was decided to reinstate our progressive dividend policy including a partial catch-up of the previously suspended final 2019 dividend.”
Comments (5)
As a Belvoir Franchise owner, I can confirm we have had Zero help from Franchise Head Office. Just a number and a profit generator for them, whilst we struggle to break even
I would put money on you not being a franchisee of Belvoir, TPFG or any other.
The ones I come across, and there a few locally, all seem to be doing okay and they’re a pleasure to chat with. Less whining and more positivity. You’ll feel better for it.
Quotes “the board is confident of meeting management’s pre-Covid expectations for the full year.” & “it was decided to reinstate our progressive dividend policy”
Is there an argument that the £250k should be paid back then?
If you are paying dividends out to shareholders then maybe you didnt actually need it that badly in the first place.
I appreciate back in April you wouldnt have necessarily known that but now that you do know ?
not even an argument…so the taxpayer is funding a share dividend whilst they make people redundant
A cheap headline when nearly all agents have used Gov money to retain jobs, exactly what it was intended for. In three years questions may be asked about whether Gov cash was needed or not. Until then businesses should use every method at their disposal to stay afloat and retain jobs.