Property Franchise Group PLC (The) Launch of new Financial Services Division (6605Z)

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RNS Number : 6605Z

Property Franchise Group PLC (The)

14 January 2020

14 January 2020

THE PROPERTY FRANCHISE GROUP PLC

("TPFG", the "Company" or the "Group")

Launch of new Financial Services Division

The Property Franchise Group PLC (AIM:TPFG), one of the UK's largest property franchises, is pleased to announce that it has launched a new financial services division and appointed Mark Graves to the new role of Financial Services Director, a non-board position.

The Group intends to pursue a "buy and build" strategy to develop this new division, targeting the acquisition of quality financial services businesses which are relevant to the Group's core business and directly authorised by the FCA. This division will operate as a subsidiary of the Group and will service the Group's existing franchisees.

This strategy seeks to enable the financial services division to capitalise on the significant volume of leads generated by the core business, whilst the property franchisees are able to generate further revenue without adding to fixed overheads.

To harness the franchisees' full commitment it is the Group's intention to make financial services available as a new franchise opportunity, with the Group holding the master franchise rights and delivering to its franchisees a separate financial services brand, back office systems, a supply of "whole of market" mortgage products and a compliance function.

As part of this new strategy and to seed the division, TPFG has acquired a 72.25 per cent. stake in Auxilium Partnership Limited, a protection advisory business, for a non-material sum. Auxilium Partnership is the first business in the newly formed subsidiary, Aux Group Limited. Auxilium Partnership was launched by Mark Graves in March 2019 with the aim to enfranchise, educate and encourage intermediaries, such as mortgage brokers, to develop their protection business, making it a core part of every mortgage and finance recommendation. The Company has no debt and is cash generative.

Mark Graves has 30 years' experience at a senior level in the life assurance sector, with FCA authorisation. He has held roles as Managing Director at Sesame Bankhall Group, Head of Network at Pink Network and Managing Director at Linear Financial Services.

Ian Wilson, Chief Executive Officer of The Property Franchise Group, commented:

"We are delighted to welcome Mark to the Group as Financial Services Director. His industry credentials are top drawer, and he has both the contacts and commercial acumen to help us identify the winners as we scale our broker network. With the knowledge that protection assurance sales are key in bringing about improved operating margins for brokers, we are very pleased to have a protection advisory business joining us as our first financial services acquisition.

"Our Financial Services division will focus on generating a high quality of earnings and improved operating margins compared to the sector average. We look forward to updating shareholders on its development in due course."

For further information, please contact:

 
 The Property Franchise Group PLC 
  Ian Wilson, Chief Executive Officer 
  David Raggett, Chief Financial Officer               01202 292829 
 Cenkos Securities plc 
  Max Hartley, Callum Davidson (Nominated Adviser) 
  Julian Morse (Sales)                                 0207 397 8900 
 Alma PR 
  Susie Hudson 
  Rebecca Sanders-Hewett                               0203 405 
  Jessica Joynson                                       0205 
 

About The Property Franchise Group PLC:

The Property Franchise Group PLC (AIM: TPFG) is one of the largest property franchises in the UK. The Company was founded in 1986 and has since grown to a diverse portfolio of six brands operating throughout the UK, comprising longstanding high-street brands and a hybrid, no sale no fee agency.

The Property Franchise Group's brands include:

-- Martin & Co: a national lettings focused brand

-- EweMove: a national, digitally enabled, hybrid sales and lettings brand

-- CJ Hole: a full-service estate agency serving the West Country for 151 years

-- Ellis & Co: a full-service estate agency serving London for 168 years

-- Parkers: a full-service estate agency serving the M4 corridor for 70 years

-- Whitegates: a full-service estate agency serving the Midlands and North of England for 40 years

Headquartered in Bournemouth, UK, the Company was listed on AIM on the London Stock Exchange in 2013. More information is available at www.propertyfranchise.co.uk

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January 14, 2020 02:00 ET (07:00 GMT)