Slides
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Final Results 2024 Transformational year with significantly enhanced scale and 29% increase in full year dividend
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Agenda 1. Highlights 2. Financial Review 3. Strategy 4. Outlook 5. Q&A 2Final Results 2024
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Key Highlights 3 Transformational year, completed two acquisitions 1 Revenue £67.3m Adjusted EBITDA £24.1m Dividend up 29% 2 Managed portfolio of 153,000 properties Financial services facilitated over £4bn of mortgages 4 52% recurring income £14.7m cash generated from operations 3 Sales pipeline Increased to £33.4m 5 Integration, leveraging scale and synergies 6 Final Results 2024
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TPFG Belvoir Group GPEA 2023 Total Revenue £27.3m 2023 Adjusted Profit Before Tax £11.2m Value prior to acquisition £112m 2023 Total Revenue £34.2m 2023 Adjusted Profit Before Tax £11.0m Value prior to acquisition £107m 2023 Total Revenue £13m 2023 Adjusted Profit Before Tax £3m Value prior to acquisition £20m 4 Two major acquisitions completed during the year which have transformed the scale of the Group Transformational Acquisitions Final Results 2024
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Following the acquisitions the business has been structured into three principal divisions Franchising Network of independent businesses operating under our Brands, Procedures and Guidance. % of Revenue Business Model Financial Services Advisers earning commission on mortgages and protection products through an authorised network Licensing Network of independent businesses operating under our Brands. Fixed Fee Model Revenue: 60% Revenue: 29% Revenue: 11% 5 Divisional Business Structure Final Results 2024
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Managed portfolio of 153,000 properties (2023: c.78,000) Sales pipeline increased to £33.4m (2023: £23.1m) Financial Services division delivered 23,000 mortgages in 2024 after acquisition of Brook Financial Services via Belvoir Licensing division now includes 1,043 licensees through the acquisition of GPEA Enhanced Board and senior leadership team to support the next phase of growth Launched new AI-driven marketing tools to enhance lead generation and franchisee support 6 Operational Highlights The Group has seen growth in all key operational metrics 1 2 3 4 5 6 Final Results 2024
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Financial Review Copy Here 7 Financial Review Final Results 2024
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Financial KPIs have significantly improved over the previous year Revenue +147% YoY £67.3m 2023: £27.3m 2023: £11.2m Cash from Operations +63% YoY £14.7m 2023: £9.0m +29% YoY 2023: 14p 2023: 56% Cash Conversion +23% YoY 145% 2023: 122% 8 Financial Highlights Final Results 2024 % Recurring Revenue -4% YoY 52% 2023: 56% Leverage - 0.4x 2023: - Dividend +29% YoY 18p 2023: 14p (Net Debt)/Net Cash -£14.2m YoY £9.1m 2023: £5.1m Adjusted PBT +99% YoY £22.3m 2023: £11.2m
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The franchising division continues to deliver the highest proportion of profitability Revenue Franchising Financial Services Licensing Adj Operating Profit* £67m £40.1m (61%) £19.2m (28%) £7.2m (10%) Franchising Financial Services Licensing £22.4m (82%) £3.3m (12%) £1.8m (7%) £27.4m 9 Revenue/Profitability Split Final Results 2024 *Excludes PLC Costs 9
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Lettings MSF continues to make up nearly half of all franchising income. Supporting the robust recurring revenue % Franchisees offer Lettings, Sales and Financial Services to their clients, with a core focus on Lettings We earn Management Service Fees which are directly linked to each business’ income FY25 Priorities • Continue integration of Belvoir franchising • Deliver mitigating projects for Renters Rights Bill • Execute lending platform to support acquisitions • Maximise sales upside from pipeline Lettings MSF Sales MSF Own Offices Other 8% Lettings LFL 15% Sales LFL 69% Recurring £6m £26m£5m £10m 2023 2024 £9m £19m£41m £7m 10 +57.7% Franchising £5m £6m Final Results 2024 10 Business Model
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Our Financial Services business has grown significantly with the acquisition of Brook through Belvoir Group FY25 Priorities • Drive digital marketing strategy into FS book • Drive productivity per adviser • Continue recruitment on advisers and business partners • Launch FS into all franchise and license brands Employed Advisers Business Model A network of leading UK mortgage intermediaries operating under Brook Financial “Brook” and The Mortgage Genie. We earn commissions directly from mortgage and insurance providers from the sale of financial services products Split between Business Partners (Independent advisers/small businesses that use our appointed rep status and employed advisers £2m £19m Business Partners 2023 2024 £9m£10m +1,193% 11 Financial Services Revenue Final Results 2024 11
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The acquisition of GPEA adds a licensing division, where a regular recurring monthly fee is paid in return for use of the Brands FY25 Priorities • Focus on the Guild value proposition to drive growth • Assess international growth opportunities and business model The Guild Business Model Membership organisation for 800 Independent Estate Agents Premium brand operating in the UK and Internationally We receive regular recurring fees from the agreements we have in place £0m £7m Fine & Country 2023 2024 £3m£4m 12 Licensing Final Results 2024 12
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2023 £29m £24m £15m £27m £22m £13m £11m 14% £31m £17m £10m - £1.5m £7m £5m £2m £67m £45m £23m In addition to the acquisitions, the underlying business has delivered 14% improvement in profitability PLC Costs £41m TPFG Belvoir GPEA 13 Impact of Acquisitions - £2.5m Final Results 2024 13 Revenue Gross Profit 2024 Adj Op Profit Revenue Gross Profit Adj Op Profit - £2m
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Cash at 31st December 2023 £7.6m Net cash from operations £14.7m Acquisitions (Net of Cash Acquired) (£16.0m) Bank Loans Drawn £20.0m Bank Loans Repaid (£9.3m) Dividends paid (£9.0m) Employee Benefit Trust Loan (£3.4m) Other movements (£0.5m) Cash at 31st December 2024 £4.2m Cash flow continues to be strong and has increased to 30p per share on an adjusted basis Free cash flow per share (£) Net cash generated from operations (£m) *Adjusted to remove exceptional costs which are solely as a result of the acquisitions 14 Cash Final Results 2024 14
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1 2 3 4 5 2024 The Group continues to deliver on its capital allocation strategy Financial Resilience Organic Growth Investment Progressive Dividend M&A Activity Surplus Capital • Pay down debt • Maintain appropriate cash reserves • Strategic spend to support synergy growth • Support acquisitions programme • Invest in cost saving programmes • Pay out ratio c.50% of earnings in dividend • Property Franchisors or complementary business models • Lettings Book acquisitions into owned • Return to shareholders • Special dividends or buy-backs • Debt raised for GPEA acquisition, accelerated pay down • Net Debt £9.1m (2023 – 5.1m Net Cash) • Leverage 0.4x • Restructuring costs incurred to enhance future profitability • AI and Digital Marketing programme investments • Proposed Full Year Dividend of 18p • Pay out ratio of 57% • Acquisition of Belvoir Group PLC • Acquisition of GPEA Limited • No surplus 15 Capital Allocation Final Results 2024
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Consistent Delivery The Group has delivered consistent growth in Adj PBT, EPS and Dividend over the last 10 years *Proforma operating cash generation of TPFG, Belvoir and GPEA from 2021 to 2023 Dividend CAGR 16% EPS CAGR 15% Adj PBT CAGR 27% 3Yr Cash Generation* £64m Dividend Adjusted EPS Adjusted PBT 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 7.7p 11.6p 14.4p 14.0p 15.4p 16.2p 16.8p 27.9p 28.4p 29.7p 31.7p 4.0p 5.9p 6.5p 7.5p 8.4p 2.6p 8.7p 11.6p 13.0p 14.0p 18.0p 1616Final Results 2024
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Copy Here Strategy 17 Financial Review Copy Here Strategy Final Results 2024
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The market was supportive of our growth in 2024 and presents opportunities for 2025 Sales House prices forecast to increase by up to 2.5% within the year Sales agreed have increased by 5% YoY suggesting along with the higher pipeline total transactions in the year are likely to exceed the average of 1.1m Financial Services Gross lending is forecast to increase by 11% to £260Bn in 2025 With further anticipated base rate cuts, average mortgage rates are forecast to drop further over 2025 improving affordability Lettings Uk rents are expected to rise between 3-4% in 2025 There remains a mismatch in supply and demand, which is not going to rebalance in short-term meaning a continued upward pressure on rents Number of homes in the PRS remains stable but may see pressure with RRB Source: Zoopla, UKFinance 18 Market Update Final Results 2024
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1 The Renters’ Rights Bill has potential challenges but also presents a significant opportunity 2 3 4 What is it? When is it coming into law? What are the potential impacts? How are TPFG responding? End fixed term tenancies, removes no fault evictions and brings in hefty fines for non- compliant landlords Expected to be implemented in Autumn 2025 May result in some landlords moving from self managed to letting agents, or in some cases exit • Presents an opportunity to engage self managed landlords which we are doing through local briefing events • Renewal fees replaced with rent review fees • Market Leading Rent Guarantee Product • Where a landlord wants to exit, working to sell to another landlord 19 Renters’ Rights Bill Final Results 2024
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Lettings Increase our market penetration and keep lettings at our core Sales Financial Services Recruitment Acquisitions Digital Marketing & AI 20 Growth Strategy 2025 - Launch rent guarantee product and funding deal to support franchisee acquisitions Capitalise upon the market upturn and develop sales activities in the high-street-led brands 2025 – Launch a more extensive sales offering in Belvoir brands Financial services division presents significant opportunity to scale across broader footprint 2025 – Launch FS programmes across remainder of our brands. Improve processes to drive productivity Attract new franchisees, licensee and advisers, to increase coverage and enable resale 2025 – Improve Guild offering, drive international strategy in F&C. Refresh network recruitment drives Accelerate business growth through acquisitions of similar and complementary businesses 2025 – Focus on completing integration of Belvoir and GPEA. Acquire lettings books into owned offices Provide an intuitive and engaging journey for the 14m customers we hold records for 2025 – Launch tailored use case pilot AI programmes. Launch marketing strategy within FS division Final Results 2024
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Copy Here Strategy 21 Financial Review Copy Here Outlook Final Results 2024
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2025 will deliver another step change in profitability and cash generation Q1 trading in line with management’s expectations Focused on completing integration & delivering synergies of acquisitions Well positioned to take advantage of market conditions in 2025 Level of cash generation provides opportunities going forward 22 Outlook High level of recurring revenue supports resilient business model Final Results 2024
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Copy Here Strategy 23 Financial Review Copy Here Q&A Final Results 2024
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Copy Here Strategy 24 Financial Review Copy Here Appendix Final Results 2024
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Franchising Financial services Licensing The largest Franchise business in the UK Significantly strengthened Financial Services division New Licensing division Revenue £40.1m £19.2m £7.2m What we do Franchisees offer Lettings, Sales and Financial Services to their clients, with a core focus on Lettings A network of leading UK mortgage intermediaries operating under Brook Financial “Brook” and The Mortgage Genie Operating under Fine & Country and The Guild of Property Professionals Business model We earn Management Service Fees which are directly linked to each business’ income We earn commissions directly from mortgage and insurance providers from the sale of financial services products We receive regular recurring monthly membership and license fees from the agreements we have in place Scale Operating 15 brands, managing 153,000 rental properties and achieving over 30,000 sales during 2024 Over 23,000 mortgages valued at over £4bn in 2024 and 300 financial consultants added to the Group A total of 1,036 outlets, of which 65 are international Business Structure Following the acquisitions the business has been structured into three principal divisions £41m 25
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Profit & Loss Summary 26 Final Results 2024
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Balance Sheet Summary 27 Net (Debt)/Net Cash £9.1m after raising £20m of debt for acquisitions in the year Net Assets +257% to £204m as a result of the two acquisitions. Final Results 2024
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The Board 28 Final Results 2024