Property management franchise Belvoir Lettings (BLV:AIM) drops 9% to 151p on a profit warning.

Delayed insurance commissions due to a change of broker means that its managed service fees will miss expectations this year ‘adversely affecting the current year profitability’. It says managed service fees are likely to have grown 8.8% to £3.1 million in 2013, missing the 10% expectation.

Belvoir hopes the change of broker will boost sales volumes in the coming years through it offering a new insurance product that includes external consultancy costs.

Web - Belvoir Lettings - 12 March 2014

The running Play of the Week’s (14 March ‘13) core lettings business remains strong with the trading update highlighting that pre-tax profits in the second half of the year were double those generated in the first six months giving it £1.6 million, versus £1.4 million made a year earlier.

The rise was partly the result of owning more of its letting outlets. Indeed, the management are confident enough in future trading to lift the dividend by 17%.

Belvoir was also positive on its estate agency business pilot, although it does not give any figures. All will be revealed when its full-year results are published at the end of the month (26 March).

Issue Date: 12 Mar 2014