The Property Franchise Group (TPFG) H2 2024 earnings summary

Executive summary

• 2024 was a transformational year with two major acquisitions, expanding market cap from £100m to nearly £300m and making the group the UK's largest property franchise business.

• Managed portfolio expanded to over 153,000 properties, with financial services facilitating over £4bn in mortgages.

• Revenue rose to £67.3m, adjusted EBITDA to £24.1m, and full-year dividend increased by 29% to 18p.

• Sales pipeline reached a record £33.4m, and the group maintained a robust financial services division.

• Integration of acquired businesses and leveraging scale for synergies and cost savings are ongoing priorities.

Financial highlights

• Revenue grew 147% year-over-year to £67.3m, with 52% recurring income.

• Adjusted EBITDA reached £24.1m; adjusted profit before tax was £22.3m.

• Cash generated from operations increased 63% to £14.7m; cash conversion at 145%.

• Net debt at year-end was £9.1m after raising £20m for acquisitions; leverage at 0.4x.

• Dividend per share increased to 18p (+29% YoY); payout ratio at 57%.

Outlook and guidance

• 2025 has started robustly, with sales and financial services markets expected to grow.

• House prices forecast to rise up to 2.5% in 2025; lending expected to increase 11%.

• Lettings market remains strong, with rent inflation finishing 2024 at 8% and expected to moderate to 3-4%.

• High recurring revenue and strong cash generation position the group well for future growth.

• Focus on integration and synergy realization from recent acquisitions.