Hunters Property PLC Trading Statement (7657R)

TIDMHUNT

RNS Number : 7657R

Hunters Property PLC

14 December 2016

14 December 2016

Hunters Property PLC

("Hunters" or "the Group")

Trading update

Hunters, one of the UK's largest national sales and lettings agency and franchise businesses, is pleased to provide the following trading update.

The strong performance that we reported at the time of our interim results in September has continued in the second half of the year, despite the well-publicised uncertainty in the UK housing market in the wake of the government's changes to stamp duty earlier in the year and the UK's decision to leave the EU. The Board expects trading for the full year to be significantly ahead of last year and slightly ahead of the Board's expectations.

The recruitment of franchisees and roll-out of new branches is on-track to exceed 30 or more new branches for the third consecutive year. The Company will continue to help independent businesses join the Hunters network and take advantage of the Hunters systems, with the intention of developing their (and our) income streams. In 2015, agents who converted to Hunters, and for whom 2015 was their first full calendar year, grew their turnover on average by 29%.

Network Income to 31 October 2016 was almost GBP29 million (October 2015: GBP24.3 million) split 58/42 between South and North. Lettings income over this period increased by 18% compared to the same period last year. Q4 2016 has started with a strong pipeline of sales, lettings and scheduled branch openings, reflecting the strength of Hunters' proposition to franchisees. As at 31 October our network comprised 180 branches; 11 owned and 169 franchised.

The Board continues to monitor and review the Government's proposal to ban tenant fees. The Company has a strong sales bias (72% of Group revenues) and is therefore confident it can manage and adapt accordingly. The Board is aware that the industry experienced a similar situation in Scotland in 2012 where the industry adapted to the change(s) without long-term damage to profitability.

To the end of 2016 and looking to 2017 the Board believes that the skills and reputation of the Group's experienced management team and its track record of success will continue to attract high-quality individuals and businesses to the Group. The Group already has a number of branch openings scheduled for the remainder of 2016 and into Q1 2017. The Board confidently expects significant further network expansion during 2017 through attracting high-quality franchisees. The Board continues to review strategic acquisitions.

It is the Board's intention on the back of the full year results to look to increase its final dividend as part of its progressive dividend strategy.

The Company expects to announce its full year results on or around the 26 April 2017.

For further information please contact:

 
 Hunters Property PLC 
  Glynis Frew, Chief Executive 
  Officer 
  Ed Jones, Chief Financial 
  Officer                         01904 756 197 
 Numis Securities 
  Stuart Skinner, Paul 
  Gillam (Nomad) 
  Tom Ballard (Corporate 
  Broking)                        020 7260 1000 
 Smithfield Consultants 
  Alex Simmons                    0207 360 4900 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 14, 2016 02:00 ET (07:00 GMT)