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TPFG.L131.50GBp0.00 (+0.00%)

52wk Low / High
120.00 / 180.88
Market Cap
£28.93m
Shares in Issue
22.00m
Earnings Per Share (TTM)
9.79p
Current PE Ratio (TTM)
13.43
Div / Yield
5.90p / 4.49%

Quotes delayed, except where indicated otherwise. Currency in GBp.

Overview

MartinCo Plc (AIM: MCO) operates one of the UK’s largest property franchise businesses through its 282 offices and 5 franchise brands:

  • Martin & Co
  • CJ Hole
  • Parkers
  • Ellis & Co
  • Whitegates

The Group’s franchisees manage approximately 43,000 properties on behalf of private clients. The Group is weighted towards lettings, which accounts for 78% of Management Service Fees revenue.

In October 2014 MartinCo bought the Xperience Franchising Ltd. and Whitegates Estates the property franchise business of Legal & General Group PLC for up to £6m in cash.

The acquisition adds 89 offices to the Group, increasing total U.K. offices to 283.

www.martinco.com

Directors

  • Richard Martin (Chair) – Founded Martin & Co in 1986 in Yeovil. Awarded Franchisor of the Year in 2003 by British Franchise Association.
  • Ian Wilson (CEO) – 30yrs sector experience. Ex Halifax Property Servs, General Accident Property Servs & latterly as National Lettings Dir at Connells.
  • David Raggett (CFO) – held financial roles at Ford & Porsche. Ex FD, Motability Scooter & Powered Wheelchair Scheme.
  • Paul Latham (NED) – on Residential Board for Royal Institution of Chartered Surveyor. Ex Dep Group CEO of LSL Property Services plc until 2010.

Financials

P&L2016
£~000
2015
£~000
Revenue*8,,3017,131
Cost of sales*(570)(357)
Gross profit*7,7306,774
Profit before income tax*3,1922,693

* Less discontinued operations

BALANCE SHEET2016
£~000
2015
£~000
Cash & cash equivalents199196
Total assets35,22724,811
Total liabilities5,6972,676

Peer Group

  • Foxtons (LSE: FOXT): – UK estate agents
  • Savills (LSE: SVS): – Commercial, residential prop servs.
  • M Winkworth (AIM: WINK): – London residential sales & lettings
  • Belvoir Lettings (AIM: BELV): – UK specialist property lettings
  • HML Holdings (AIM: HML): – Residential Property management & insurance services

Major Shareholders

Directors

  • Richard Martin – 38.45%
  • Ian  Wilson – 5.85%
  • Paul Latham – 0.11%

Other

  • Miton Asset M’gt – 14.6%
  • ISIS EP LLP – 6.93%
  • Artemis – 5.81%
  • Hargreave Hale – 5.26%

Macro Indicators

Savills, “Rental Growth in the Mainstream Market.” (Jan 2015)
“We are forecasting that the number of households in the private rented sector will rise by 1.2 million over the next five years”

Media coverage

Shares (Feb 2015)
“Rising demand for rental properties and a war chest of around £4m to expand its network are set to drive huge profit growth.”

Broker Coverage

Panmure Gordon (House Broker, Apr 2015)
“MCO has delivered its targets set at the time of listing in 2013. The franchise expanded 49% to 282 offices. Properties managed across the network grew by >10,000 to 42,000. The financial performance is in line with expectations with earnings before interest and tax up 25.9% to £2m. The outlook for the sector is encouraging with lettings demand exceeding supply and housing transactions set to increase with wage inflation.” (Buy. Target Price 168p)

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