Sumary of MIDAS SHARE TIPS UPDATE: Belvoir reaping rewards of boom in property:
- When estate agency group Belvoir unveiled its 2019 figures on March 30, 2020, Britain had just entered into its first lockdown and chief executive Dorian Gonsalves said he thought Covid-19 would have a significant effect on trading for the rest of the year, so much so that the final dividend was axed.
- In the event, Gonsalves – and Belvoir’s shareholders – were pleasantly surprised.
- Last week, Gonsalves said first-half revenues were 41 per cent higher than in 2020 and 53 per cent ahead of 2019, driven by strong demand across every part of the business.
- On the move: Soaring demand for new homes has boosted revenues for estate agency BelvoirBelvoir differs from many peers because it operates a franchise model, with 243 franchisees effectively acting as small businesses, supported by Gonsalves and his team.
- This makes the group nimbler and more entrepreneurial than many large property firms, a particular bonus during the ups and downs of the pandemic.
- Belvoir suffered from virtually no arrears last year and in the first half of this year, underlying rental revenues rose 10 per cent, with further strong growth expected through 2021 and beyond.
- On the sales side, Belvoir has benefited from soaring demand for new homes, as people rush to find larger properties more in keeping with flexible working lifestyles.
- Belvoir derives around 90 per cent of its revenues from rentals, rather than salesIn recent years, Belvoir has moved into financial services as well, offering mortgage advice through 242 independent advisers.