Property Franchise Group PLC (The) Trading Update (0017Q)

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RNS Number : 0017Q

Property Franchise Group PLC (The)

06 September 2017

6(th) September 2017

THE PROPERTY FRANCHISE GROUP PLC

(the "Company" or the "Group")

Trading Update

The Property Franchise Group Plc today announces that trading for the first six months ended 30 June 2017 has been encouraging. Revenue for the period was approximately GBP4.7m and profit before tax was approximately GBP2.1m including exceptional items.

Our traditional high street brand businesses have continued to perform well with revenue up 4% year-on-year to GBP3.8m and profits up 22% to GBP2.0m.

The disruption caused by the early departure of the EweMove co-founders on 30(th) June 2017, as announced on 29(th) March 2017, has meant that EweMove's trading position is behind management expectations with (unaudited) losses for EweMove at the half year to 30(th) June 2017 of GBP0.3m against a target loss of GBP0.1m, on revenues of GBP0.9m. As a result, the management expects underlying profits for the full year for the Group to be below market expectations.

The Board remains committed to EweMove, which it believes continues to offer significant growth prospects in the medium term. EweMove has over 100 franchisees and the Group's strategy remains to scale the business over the next 2 years. The business recruited 18 new franchisees in the first six months of 2017 and Management Services Fees revenue is up 35% year-on-year to GBP0.6m.

The Group will announce its interim results on 14(th) September 2017.

Ends

This announcement contains inside information.

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 (Nomad), Alex Aylen (Sales)    020 7397 8925 
 Bell Pottinger                              020 3772 
  David Rydell, Henry Lerwill                 2500 
 

About The Property Franchise Group

The Property Franchise Group operates one of the UK's largest property franchise businesses through over 370 offices and six franchise brands: Martin & Co, CJ Hole, Parkers, Ellis & Co, EweMove and Whitegates.

The Group added an estate agency service in 2012 and franchisees currently manage 49,000 properties on behalf of private clients. In 2016 the Group acquired EweMove, a "hybrid" online estate agency franchisor.

The Group is a multiple award winning business and the Directors and senior management have over 100 years of combined residential letting and estate agency experience.

http://www.propertyfranchise.co.uk/

This information is provided by RNS

The company news service from the London Stock Exchange

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September 06, 2017 08:25 ET (12:25 GMT)