Property finance firm Belvoir Group has expanded in the South West after completing two acquisitions
The company, which has its head office in Grantham, Lincolnshire, has bought two brokers in the region representing fellow London-listed firm Mortgage Advice Bureau.
In an update to investors, Belvoir bosses said it had purchased Plymouth-based MAB (South West) Ltd for a cash consideration of £1m, to follow up a £1.1m swoop for BMA Bristol Ltd in June.
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Belvoir has bought the entire issued share capital of BMA and MAB SW through its subsidiary Brook Financial Services for a total net consideration of £2.1m, settled in cash from existing cash reserves. As part of the deals, Tim Wood - Brook's financial services director - will manage both businesses, overseen by Michelle Brook, managing director of Brook and an executive director on Belvoir’s board.
Belvoir’s new acquisitions provide mortgage and related financial services to clients through a combined network of around 40 advisers.
In the year to September 30 2022, MAB SW reported revenue of £1.5m, pre-tax profits of £0.1m and net assets of £0.2m. In the year to December 31 2022 BMA had revenue of £1.8m, pre-tax profits of £0.3m and net assets of £0.1m.
Belvoir’s board said they expected the new additions to boost the group’s earnings “immediately”, adding around £0.6m to annual pre-tax profits.
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Chief executive Dorian Gonsalves said: "We are delighted to announce the acquisitions of BMA Bristol and MAB (South West), which extend our network of experienced financial advisers across the South West, supporting both our franchisees at a local level, as well as servicing leads from independent agents.
"The acquisitions have been secured during a more challenging phase of the property sector cycle which has been reflected in the price paid. However, the Board is confident that given the strong client banks within these businesses, they can be developed further and be positioned to take advantage of future upsides in the new purchase and remortgage markets."
The deals bring Belvoir's financial services network up to around 320 advisers. Founded in 1995, Belvoir now operates a nationwide property franchise Group with almost 500 offices nationwide, specialising in residential lettings, property management, residential sales and property-related financial services.
The group manages 75,500 properties and reported record revenues of £33.7m in 2022, as well as its 26 consecutive year of profit growth.