Property Franchise Group Reports 1% Revenue Increase in First Half

Property Franchise Group announced on Wednesday that its first-half revenue has risen by 1%, driven by a continued focus on growing lettings revenue. The estate and lettings agency reported a revenue of £13.2 million ($16.9 million), up from £13.1 million in the previous year.

This modest increase was primarily attributed to the growth in lettings management service fees, which more than offset the reduction in sales fees. The residential sales market has been adjusting to uncertainties surrounding inflation, interest rates, and house prices.

Management service fees increased by 3% to £7.7 million, with a significant 12% growth in letting fees compensating for the decline in sales fees. However, the company's agreed sales pipeline experienced a 16% decrease, amounting to £28.4 million.

Chief Executive Gareth Samples hailed the benefits of their focused franchise model with multiple income streams, stating that these results demonstrate considerable resilience in the face of an uncertain macroeconomic backdrop. Despite expecting continued macroeconomic uncertainty, Samples expressed confidence that the company's performance aligns with market expectations for the full year.

At 0803 GMT, shares rose by 10.0 pence or 3.8%, reaching 275.0 pence.