Belvoir Lettings PLC’s (LON:BLV) interim profits surged as it shrugged off the impact of changes to the buy-to-let tax regime and sticky housing market.
A restructuring, focus on franchising and full six months from Northwood (acquired just over a year ago) helped profits jump to £1.73mln (£1.07mln) on revenues of £4.92mln (£4.29mln) in the half year to June.
Management services fees (MSF), the bulk of revenue, rose 47% to £3.8mln, with 57,000 properties now on the books.
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Dorian Gonsalves, chief executive, said: “In H1 the group achieved organic growth from MSF, our key revenue stream, of 4% which is higher than the reported rental index within the sector, and continued growth from property sales, in a market that has seen some mixed results from other companies in the sector.
"Our ability to outperform the market has helped to deliver a strong set of first half results, and with a promising start to the second half, Belvoir is on track to meet management expectations for the year."
The interim dividend is maintained at 3.4p.
Shares rose 4% to 108.5p.