Martin & Co get more Xperience in London.

Martin & Co, the AIM-listed estate agency franchisor, announced the purchase of all four of the Xperience franchise estate agency brands, comprising CJ Hole, Parkers, Whitegates and in London and the South-East, Ellis & Co. They paid £6m to acquire Whitegates Estate Agency Ltd and Legal & General Franchising Ltd from Legal & General.

The enlarged group will consist of 283 offices and over 43,000 managed rental properties.

The Ellis & Co brand adds 21 franchise offices to the existing 26 Martin & Co offices in London. Only two of the new offices overlap with existing ‘franchise areas’.

According to GetAgent, the estate agent comparison site, Ellis & Co have listed 572 properties in London over the past 6 months. Martin & Co’s combined London branches listed 358 properties for sale over the same 6 month period.

 

Known primarily as a lettings agent, the company introduced estate agency services in 2012, alongside a rebrand.

The acquisition of mostly estate agency offices from Legal & General gives the enlarged franchise group a stronger foothold in the current property sales boom being experienced since 2009.

Alongside other estate agency stocks like Foxtons and Countrywide, Martin & Co has been trading at 12 months lows in October, with the share price going as low as 100p. However the acquisition news has boosted the share price to 125p with a wide spread of 122-128p, giving the company a market capitalisation of £25m and a price-to-earnings ratio of 35.7.

Franchisees, in addition to start-up support costs, pay 9% plus VAT to Martin & Co. There is clear scope for Martin & Co to extract cost savings from the deal. What will be interesting is if the group decide to unite the offices in London under one brand, or continue to operate two different names.

Also of note, Xperience Group had signed up to the upcoming Agents’ Mutual portal. Will that deal be honoured? And will Martin & Co commit all their branches to OnTheMarket.com?

Financial background

The Xperience business has seen little top-line turnover growth in 18 years, however profit grew sharply from £170k in 2000 to £525k by 2007. However, they suffered in the wake of the credit crunch alongside the general decline in the property market, posting an £87k profit the year after.

The extent of the UK property market recovery is clear in these financial results: while the dire situation of 2007-08 is no longer prevalent, we’ll never see pre-crash volumes of home sales again.

From 89 agency franchise branches, Xperience recorded a pre-tax profit of £341,167 on turnover of £1,187,362 in the year ending 31 December 2013,according to filings with Companies House.

This compares with Martin & Co earning £1.6m pre-tax profit (excluding exceptional items) on turnover of £3.7m over the same 12 month period ending 31 December 2013.

An FT article at the time of Martin & Co’s floatation reported: “The agency has a 1.7 per cent share of the overall letting market in the UK. Although this figure is small, it is the largest business in the sector, underlining how fragmented the market is.”)

Alex Evans

You May Also Enjoy

Breaking News

Popping the Asking Price Bubble

Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price   New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More
Rightmove logo
Breaking News

Highest demand to lease office space since pre-pandemic

The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More
Planning disputes on new build land
Estate Agent Talk

Planning consultations for major infrastructure to be streamlined

Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More
Breaking News

‘The property ladder pulls further away’ warns Open Property Group

For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More
Estate Agent Talk

How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase

Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More
Love or Hate Rightmove
Breaking News

Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings

Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More