30 March 2020 – final results

The UK’s largest property franchise group has announced final results for the year ended 31 December 2019.  Group revenue increased by 43% to £19.3m (2018: £13.4m).  Profit before tax was £5.6m (2018: £5.5m including an exceptional credit of £0.6m), with diluted earnings per share edging up from 12.6p to 12.9p.  The company has a strong balance sheet with cash of £3.6m at the year end (2018: £1.8m) and net debt reduced significantly to £6.9m (2018: £9.6m).  However, in response to Covid-19, the final dividend was scrapped for the current year.  The shares have come down significantly from what appeared to be a full valuation earlier in the year so for now we rate the shares as a HOLD.