The parent firm of estate agent brands Martin and Co, Hunters and CJ Hole said it has experienced a "significantly stronger" residential housing market.
The Property Franchise Group (TPFG), which describes itself as the largest operator of its kind in the º£½ÇÊÓƵ property market, released its interim results on Wednesday (August 2) saying its performance was in line with management's expectations due to its lettings revenues.
The Bournemouth-headquartered company saw revenue increase by 1% to £13.2m, when compared to the same period last year.
However, the group saw a 16% dip in its sales agreed pipeline falling from £33.8m last year to £28.4m, while lettings performed strongly growing by 12%.
Read more: Plymouth's Sutton Harbour Group records losses in latest financial update
According to the group this growth "more then offset" the reduction in sales as the residential sales market continued to adjust to the uncertainty regarding inflation, interest rates and house prices.
Sustained demand for lettings properties, growth in the portfolio of managed properties and rental inflation meant lettings continued to be a growing and highly resilient revenue stream for the group, contributing 61% of total revenue for the period.
Chief executive, Gareth Samples, commented: "We are pleased with our performance in the first half of 2023. The benefits of operating a focused franchise model with multiple income streams are reflected in these results, as we continue to demonstrate considerable resilience in the face of an uncertain macro-economic backdrop. Whilst the Board expects the macro-economic uncertainty to continue, it is confident that trading remains in line with expectations for the full year."
In its results The Property Franchise Group said that seasonally adjusted º£½ÇÊÓƵ property transactions were 20% lower than the in 2022, which was reflected in Hunters performance, whilst other brands grew market share. While EewMove increased sales by 15%. It sold 17 new territories during the first half of the year.
In a statement the group said: "This model continues to be attractive especially during more uncertain macro-economic times, allowing franchisees to benefit from a low-cost base and increased flexibility.
"Our network of franchisees continues to benefit from the strength and experience of the senior management team. We are pleased to have further bolstered the team in H1, with the recruitment of our first commercial director, the appointment of a group franchise services director and finance director. The investment in our management team will further enhance our ability to support the franchise network to seize the opportunities that exist and invest where further value can be derived."
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