TheNews Mike Goddard


National lettings franchise Belvoir Lettings is to float on the Alternative Investment Market next month in a bid to raise between £6m and £8m to fuel its


growth strategy. It is the UK’s first residential lettings agency initial public offering, and will put the network up alongside industry peers Winkworth and LSL Property Services, as well as portal giant Rightmove. Speaking to The Negotiator,


Belvoir founder and chairman Mike Goddard (pictured), says, “The sales market is depressed and will continue to be for a significant period of time. The lettings market is poised for further growth. There has been a massive increase in lettings agents, and I feel that it is now peaking and there’ll be major consolidation. There is huge potential for consolidation.” The former Royal Air Force wing commander, who founded the business with his wife Stephanie in 1995, adds, “Stephanie and I spent many


EXCLUSIVE Martin & Co to launch sales arm to win more instructions


National lettings franchise


Ian Wilson


Martin & Co is to launch a sales operation in a bid to prevent franchisees from losing instructions.


Martin & Co’s managing director, Ian Wilson (pictured), says, “We are fed up with losing instructions to the big chains, where they accept a sales instruction, then convert it to a let. This makes for an unfair playing field.” He adds, “We’re losing


instructions to the likes of Your Move and Connells, who dual market for sales and lettings. Vizzihome stats suggest this is having an impact in some places, that they are making


12 l March 2012 l TheNegotiator


progress at our expense.” Wilson plans to roll out the


sales operation, which will be called Martin & Co Sales, to existing franchisees with stable lettings businesses in the form of licenses for £1. He says, “We think it’s a good opportunity and yes, we could be clever and charge £4,000, but we know people are stretched at the moment, so we’d rather they keep their money in their business and make more for themselves.” The strategy is part of the


network’s 2012 growth plan, which will also see a brand developed specifically for Scotland, called Martin & Co Lettings Scotland. Wilson says, “It’s to acknowledge that independence has been gathering pace, and one of the best-received ideas we’ve made.”


The network has 19 outlets in Scotland. Meanwhile, Martin & Co is


buying back businesses from franchisees looking to exit the market. The strategy, which the network kicked off last year, will see businesses purchased for three times profit. Worthing in West Sussex is the first of the buy back deals, followed by Bournemouth, where Martin & Co is headquartered. Martin & Co was launched as a franchise in 1995 and now has 182 offices trading across the UK, which includes 12 online businesses. Wilson expects Martin & Co to generate £2m of head office pre-tax profit on turnover of £4.5m income this year. This compares to pre-tax profit of £1.3m on income of £3.7m for 2011.


years building this business, a substantial business, for further growth and this requires further investment and the ability to gear on that and the ability to look to the future. We’re not just going to tick along like many letting agencies. We’re looking at our next era of growth.” Goddard, 63, and his management team, which includes managing director Dorian Gonsalves and finance director Carl Chadwick, expect the flotation to also increase Belvoir’s profile and visibility, to help with organic growth. They have identified 361 free postcode territories into which the network


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FRANCHISING Belvoir Lettings to float on AIM to raise growth funds


could expand, with the majority (85) in the North followed by London (60) and the South (46) of England. Grantham, Lincolnshire- headquartered Belvoir currently operates 142 franchised offices, which collectively manage over 20,000 properties across the UK. An additional four offices covering Hinckley and Nuneaton, Crewe and Nantwich, Perth and Derby West will open in the next few weeks. Between 10 and 15 further office openings are expected across the country in 2012. Chadwick, a chartered


accountant who joined Belvoir last year, will lead the AIM flotation, which has involved more than 40 presentations to a range of prospective investors, including private wealth funds, over the last month.


The network’s existing franchisees are being offered a proportion of the new shares. Goddard will retain 65 per cent of the business, which last year generated £1.3m in pre-tax profit based on turnover of £2.4m This is down on the £1.4m pre-tax profit reported for 2010 but up on the £1.2m reported for 2009.


WORD ON THE STREET


Sold house in tough market. House had been previously valued at £1.2m, but went on the market in August 2011 for £900,000. Sold for £860,000 which we held out for. We wanted to downsize and found that the market for a £500,000 home in the area we were looking was somewhat limited. We eventually found one and negotiated hard, but still had to pay more than I would have liked. Breda, Ipswich


I am a 31-year-old first-time buyer with a cash deposit trying to purchase a new-build, so I qualify for current government schemes (FirstBuy). However, I have found that it is almost impossible to find a builder who is open to negotiations on house prices as soon as you mention the scheme. Clair, Cambridge


Trying to sell a lovely five-bed, four reception room house in South Wales to relocate to North Wales for work. House is well priced, completely refurbished, but no viewings in two months on the market. Richard, Swansea


I’m 26 and still living at home as cannot afford to move out. I can afford repayments on a mortgage easily, but not a deposit. Why should I pay double the amount to rent somewhere and waste money on something that will not be mine? Lauren, Torquay


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