The Property Franchise Group PLC on Tuesday said it outperformed the market in sales and lettings, with increased profit and revenue, in its first half year.

The Bournemouth, England-based lettings and estate agency franchising firm said pretax profit increased 11% in its first half year to £4.2 million from £3.8 million the year before.

Revenue increased 0.7% to £13.2 million from 13.1 million. Management service fees, which it said were the ‘key element’ of its lettings and sales results, increased 2.7% to £7.7 million from £7.5 million. Lettings MSF increased 12% to £4.8 million, which contributed 61% of the total fees and ‘more than offset’ a 11% decrease in sales MSF to £2.9 million, which PFG said it had expected.

‘It’s another period of record revenue for us, outperforming the market in both lettings and sales,’ commented Chief Executive Officer Gareth Samples. ‘Moreover, with continued focus on costs, slightly down despite the pay increases needed by our employees, we have also set another record for profit before tax.’

‘This year...demonstrates the strength of our franchise business model and the power that results from a network of entrepreneurial franchisees seeking to maximise the opportunities in their local marketplaces.’

Property Franchise declared a 4.6 pence interim dividend, up 10% from 4.2p for the same period last year. Samples said this reflected the board’s ‘confidence’ in its ongoing strong performance.

The company said trading so far in the second half year was in line with its full-year expectations, and said it expects current market conditions to continue through the current half. It said it expects rents to continue increasing ‘for the forseeable future’ but that the sales market has proven ‘more resilient than many commentators had been predicting.’

Samples said: ‘We remain extremely well-placed in the current environment and have a substantial growth opportunity to capitalise on.’ He added that the second half year ‘usually generates higher revenues and profits,’ and its performance ‘appears to be following that trend so far.’

Property Franchise Group shares were up 3.6% at 290.00 pence in London on Tuesday.

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