At the same time, the number of advisers within the group increased by 21 per cent to 294. It said advisers benefitted from their “extensive client books” as purchase activity decline and the demand for remortgages rose.
The group said September’s mini Budget created uncertainty within the market which impacted on instruction levels for house sales and the demand for mortgages in Q4. It said this would impact trading in the first half of 2023.
Revenue from its property division increased by a modest one per cent to £15.5m.
Belvoir said its reach had extended in 2022 due to the acquisition of Time Mortgage Services which added to its network of financial services advisers. Since the acquisition, Time has contributed revenue of £2.6m to the group, while its buyout of estate agency Mr and Mrs Clark (MMC) enabled Belvoir to recruit agents in six new territories.
Recovery in 2023
Belvoir said the recovery would “build slowly over the year”.
The firm said the time from instruction to house sale and or mortgage application to drawdown was around five months, so the benefits of this improved activity would not show until the second half of the year.
Because of this, the group expects its profitability for the full year to be below 2022, then rebound in 2024.
Overall, the group’s revenue rose to a record £33.5m, a 13 per cent rise on 2021. Its full audited results will be published on 27 March.
Dorian Gonsalves, CEO of Belvoir Group, said: “I am delighted to report that during 2022 our acquisition strategy both at Group and at franchisee level enabled Belvoir to both extend its service offering and mitigate the lower level of activity in the housing market following the exceptionally strong conditions in 2021.
“Our property franchisees and financial services advisers are highly motivated entrepreneurs who continue to demonstrate the ability to make the most of the opportunities presented in all market conditions. Our financial services advisers have substantial client books from which to offer remortgages and other financial products, so are not entirely reliant on new mortgage business.
He added: “Whilst we anticipate continuing challenging market conditions in 2023, we remain confident that the resilience and diversity of our business model will enable the group to perform well against the market as a whole. As always, the board will continue to identify suitable acquisition targets to support continued growth and enhance shareholder value still further.”
