The Property Franchise Group – Pre-Close Trading Update displays confidence, its shares are on the rise again, now 526p, TP 710p

Mark Watson-Mitchell - 09.12.2025

The shares of The Property Franchise Group (LON:TPFG) peaked at 598.68p at the end of September this year, before easing back 478p on bouts of profit-taking.

Now they are climbing back up again, currently 526p, valuing the agency group at £334m, which I consider to be an attractive buying level for investors looking forward to a positive 2026.

Last week’s Pre-Close Trading Update was one of confidence, with the group stating that it was leveraging upon the enlarged scale of the group and now capitalising on its opportunities to drive momentum.

The Business

Since its establishment in 1986, the company has subsequently grown and now has a strategically diverse portfolio of 19 brands operating throughout the UK, comprising longstanding high-street focused brands and two hybrid brands.

With a network of over 1,900 outlets, the group’s brands are: Belvoir, CJ Hole, Country Properties, Ellis & Co, EweMove, Fine & Country, Hunters, Lovelle, Martin & Co, Mr and Mrs Clarke, Mullucks, Newton Fallowell, Nicholas Humphreys, Northwood, Parkers, The Guild of Property Professionals and Whitegates.

The Property Franchise Group is also a member of two leading mortgage networks through its mortgage brokers, Brook Financial (MAB) and The Mortgage Genie (Primis).

More than 60% of the franchise owners have been trading for over five years.

The group prides itself on the comprehensive start-up training, support and investment that it offers: Support & investment; Business planning & development; Training & development; Marketing support; and On-going support.

Headquartered in Bournemouth, the company manages over 73,000 tenanted properties UK-wide.

Management Comment

CEO Gareth Samples stated that:

"We are continuing to leverage the enlarged scale of the Group to capitalise upon additional income opportunities and provide increased value to our franchisees and members.

The uptake of our Privilege programme has been pleasing and is delivering tangible benefits, mitigating the impact of Renters Rights Bill.

Underpinned by a strong franchise model and diversified revenue streams, we have seen strong momentum and significant organic growth in trading to the end of October resulting in our expectations for the full year profitability to be at least in line with market expectations."

The Equity

There are some 63.75m shares in issue.

The larger holders include Gresham House Asset Management (Investment Management) (9.59%), Octopus Investments (7.41%), Richard Martin (7.28%), Link Fund Solutions (5.99%), TrinityBridge Fund Management (4.66%), TrinityBridge Ltd (3.30%), Otus Capital Management (3.12%), Canaccord Genuity Wealth (2.91%), Rathbones Investment Management (2.90%) and Oxeye Capital Management (2.44%).

Analyst Opinions

Analyst Guy Hewett, at Cavendish Capital Markets, rates the group’s shares as a Buy with a Target Price of 710p.

The broker states that:

“We reiterate our view that TPFG is an unrecognised AI/Tech opportunity with its highly entrepreneurial franchise network very well placed to benefit from its tech-enabled transition.”

For the year to end-December 2025, he is looking for group revenues of £84.8m (£67.3m), adjusted pre-tax profits of £30.4m (£22.3m), generating earnings of 35.9p (31.4p) and paying a dividend of 21.0p (18.00p) per share.

For next year, he sees £87.6m sales, £31.9m profits, 37.5p per share of earnings and a 22.3p dividend.

The 2027 year could show £91.4m revenues, £33.9m profits, 39.8p earnings and a 23.7p per share dividend.

Portia Patel, analyst at Canaccord Genuity Capital Markets, has a Buy out on the group’s shares, with a Target Price of 637p.

Her recently upgraded 2025 estimates are for £85.4m sales, £30.4m profits, with 35.9p earnings and a 21.0p dividend per share.

For 2026, she looks for £87.2m sales, with £32.0m profits, 37.7p earnings and a 22.0p dividend.

Her estimates for the year to end-December 2027 are for sales of £90.4m, £34.3m profits, 40.3p earnings and a dividend of 23p per share.

My View

I like this group’s business model and respect its ability to generate cash.

Its shares at 526p offer some clear upside as it progresses into 2026.

I now set a Target Price of 620p.

(Profile 03.04.25 @ 424p set a Target Price of 500p*)

(Profile 09.12.25 @ 526p set a Target Price of 620p)