Belvoir Lettings’ pretax profit increased by 25% to £2.2m in 2015, reflecting a strong UK rental market.
The chain said its 25% growth year-on-year in management services fees to £4m reflected more landlords using letting agency services owing to heavier regulation across the private rented sector.
Belvoir’s core revenue is derived from management service fees, of which lettings represents more than three quarters.
The results follow the company’s acquisitions of Newton Fallowell and Goodchilds last year, increasing its network by 31% to 212 outlets.
Belvoir chief executive Mike Goddard said: “Looking to the future, I expect Belvoir to be at the forefront of further consolidation within the property franchising industry as the benefits of centralised franchising expertise and economies of scale become more attractive.”
Belvoir, which manages 37,000 properties, said it expects to open an extra 41 estate agency offices in 2016.
Revenue from property sales in 2015 grew by 60% to £1.4m, which Belvoir said primarily reflected the increased service offering from the acquired businesses.
However, it said its intention was to remain a “lettings-dominant business”.
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