The Property Franchise Group has reported higher first-half revenue despite a subdued property sales market. Group revenue increased 7% to £43.3m in the six months to 30 June 2026, up from £40.3m a year earlier.
Adjusted pre-tax profit rose 7% to £15.5m. Adjusted EBITDA increased 3% to £16.2m. The AIM-listed group, which owns brands including Belvoir and Martin & Co, increased its interim dividend by 10% to 7.7p per share.
Revenue Breakdown
Franchising revenue increased 8% to £24m, while financial services revenue rose 10% to £13m. Licensing revenue remained unchanged at £6.3m. Recurring income accounted for 46% of group revenue, compared with 47% a year earlier.
The group’s managed lettings portfolio stood at around 149,000 properties. That compares with approximately 150,000 in H1 2025. Its Privilege programme generated £1.2m during its first full half-year.
Financial Performance
The Rent Guarantee element now covers more than 72,000 managed properties. Meanwhile, the group’s sales agreed pipeline increased by around 2.5% to £44.6m. The financial services division completed 13,400 mortgages, up from 12,800.
Chief executive Gareth Samples stated that this has been another record first half for the group, delivered in a subdued sales market, demonstrating the resilience of the diversified franchise model.
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The group’s ability to maintain its managed portfolio and support its network through the implementation of the Renters’ Rights Act is a key factor in its success. The diversified income streams and growing recurring revenue base also give the group confidence in delivering full year trading in line with market expectations.
Investments and Acquisitions
The group launched its first commercial AI-enabled products during the period. The technology aims to improve franchisee productivity, inbound lead handling and financial services lead progression. So far, 14 franchisees have adopted the products.
The acquisition of Smart Advice Financial Solutions (SAFS) was completed in January. The business has since integrated and is performing in line with expectations. They also invested in Meridian, the parent company of Legal & General Surveying Services.
Net debt fell to £8.1m from £10.9m a year earlier. The group generated £13.4m in cash from operations during the six-month period. Samples added that whilst the external environment remains uncertain, the diversified income streams and growing recurring revenue base give the group confidence in delivering full year trading in line with market expectations.
The group’s financial performance is also reflected in its key metrics, including adjusted EBITDA, adjusted profit before tax, and adjusted basic earnings per share, which increased by 3%, 7%, and 8% respectively.
The cash generated from operations and the reduction in net debt are important indicators of the group’s financial health and its ability to manage its debt obligations. The group’s confidence in delivering full year trading in line with market expectations is based on its diversified income streams and growing recurring revenue base, which provide a solid foundation for its future performance.
