Estate and lettings agency franchise Belvoir (BLV) gained 8.1% to 154p as it upgraded profit guidance and announced plans for another catch-up dividend.
In a 10-month trading update the company revealed that its property and financial services divisions had achieved year on year growth in gross profit of 10% and 11% respectively.
Belvoir provides support and guidance to franchisees across 300 high street offices in return for a management service fee.
Management service fee income from lettings was up on 2019 and service fee income from sales was level, as the impact of the Covid lockdown in the second quarter was offset by the acquisition of the Lovelle estate agency franchise network and the strong recovery in the sales market in the second half.
RESILIENT FRANCHISE MODEL
'The group has continued to benefit from the prompt action taken to reduce its cost base at the start of the pandemic, such that overheads are now significantly below the original budget,' the company said.
A catch-up dividend of 1.3p per share will coincide with the final 2020 dividend. 'This additional dividend represents the last payment in respect of the final dividend for 2019 which was suspended in March 2020 and brings the total reinstated 2019 dividend to 3.3p per share,' it added.
The company also said it would repay staff for salary sacrifices during lockdown and return all the furlough money it received from the government.
FinnCap analyst Guy Hewett said: ‘The resilience of Belvoir’s franchise model has been proved and, in our view, highlights the long-term growth potential when markets return to more normal conditions.’
