The Property Franchise Group – shares trading at All-Time High levels, with Interims due tomorrow, brokers TP’s up to 650p

08.09.2025

Despite reports of quieter property markets, especially residential, some companies are still looking quite appealing within the overall sector.

One company that stands out for me is The Property Franchise Group (LON:TPFG), which is reporting its Interim Results for the six months to end-June tomorrow morning.

Its shares, now 556p, are currently trading at around their all-time highest levels.

I consider that there is still more to come from this £354m-capitalised company.

It is the UK’s largest multi-brand lettings and estate agency franchising group, with a portfolio of outstanding estate and letting agency brands that encompass the power of online and high street delivery for an exceptional service to residential clients across the UK.

The Business

Since its establishment in 1986, the company has subsequently grown and now has a strategically diverse portfolio of 18 brands operating throughout the UK, comprising longstanding high-street focused brands and two hybrid brands.

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).

The group operates a pure franchise model that is tried, tested and trusted with over 350 franchise owners operating high street and hybrid agencies, with a total of over 580 branches and hybrid agents across the length and breadth of the UK.

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.

Trading Update

At the start of August, the group issued a Trading Update for the six months to end-June, reporting that it had delivered strong organic growth across its three divisions in the first half of the year, with full year trading anticipated to be in line with market expectations.

Looking ahead to the remainder of 2025, the focus for H2 will be on continuing to deliver the additional income opportunities resulting from the scale of the enlarged group.

It noted that the strength of the group's franchise model and diversified revenue streams puts TPFG in a strong position and continues to shelter it from market cyclicality.

As such, the group expects further growth across the divisions for the remainder of FY25 and expects to deliver trading in line with expectations for the full year.

Management Comment

CEO Gareth Samples stated that:

"I am delighted that the Group has continued to deliver a strong performance across all three divisions in the first half.

With the significant growth and step change achieved in FY24, post acquisitions, we continue to deliver the anticipated synergies whilst leveraging our enhanced scale and capabilities to deliver greater value to our franchisees and members.

Our resilient franchise business model, diversified revenue streams and continued strong cash generation provide the Board with confidence for the year ahead."

The Equity

There are some 63.75m shares in issue.

The larger holders include Gresham House Asset Management (Investment Management) (13.82%), Link Fund Solutions (7.84%), Richard Martin (7.28%), Octopus Investments (5.11%), TrinityBridge Fund Management (4.66%), Gresham House Asset Management (4.12%), TrinityBridge Ltd (3.30%), Otus Capital Management (3.12%), Canaccord Genuity Wealth (2.91%), and Oxeye Capital Management (2.80%).

Analyst Opinions

Analyst Greg Poulton, at Singer Capital Markets, rates the group’s shares as a Buy with a Target Price of 600p.

He states that the strength of the franchise model and diversified revenue streams puts TPFG in a strong position and continues to shelter it from market cyclicality.

For the year to end-December 2025, he is looking for group revenues of £82.3m (£67.3m), adjusted pre-tax profits of £30.1m (£22.3m), generating earnings of 37.5p (31.4p) and paying a dividend of 20.0p (18.00p) per share.

For next year, he sees £88.7m sales, £32.5m profits, 40.0p per share of earnings and a 21.0p dividend.

Justin Bates and Portia Patel, analysts at Canaccord Genuity Capital Markets, also have a Buy out on the group’s shares, with a recently increased Target Price of 637p (595p).

Their 2025 estimates are for £84.2m sales, £29.8m profits, with 35.2p earnings and a 20.0p dividend per share.

For 2026, they look for £87.1m sales, with £32.0m profits, 37.7p earnings and a 22.0p dividend.

Both Cavendish Capital Markets and Peel Hunt also have positive research notes out on the group, commenting upon the group’s strong first half performance – with Peel Hunt having a Buy on the group’s shares, with a 650p Target Price.

In My View

Just take a look at this group’s share price performance over the years, it is one of steady growth up to the current levels.

Now at 556p, unless tomorrow’s accompanying statement has bearish tones reflecting the unsettling Budget measures to come, the shares offer a continuance of that price progression.

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

Asterisk * denotes that Target Price has been achieved since Profile publication.