Property Franchise Group

Website: Property Franchise Group
Index: AIM
EPIC: TPFG
Supersector: Real Estate
Sector: Real Estate Investment and Services
Subsector: Real Estate Services
Market Cap: £311.07M
Payout Frequency: Semi-Annual

Property Franchise Group Dividend Analysis and Summary

Dividend announcement and key dates

Proposed final dividend: 15.0p per share (FY24 final: 12.0p)
Total FY25 dividend: 22.0p per share (up 22% vs FY24: 18.0p), comprising interim 7.0p and proposed final 15.0p
Ex-dividend date: 07/05/2026
Record date: 08/05/2026
Payment date: 01/06/2026
Dividend cover (on adjusted basic EPS): 1.8x (FY24: 1.8x)
Shares in issue: 63,752,008; cash cost of final dividend c.£9.6m; total FY25 distribution c.£14.0m

Dividend policy and cover

Policy: progressive dividends targeting c.50% payout of earnings.
FY25 adjusted basic EPS: 40.3p; DPS: 22.0p ? payout c.55% (cover 1.8x), consistent with stated framework.

Financial support and cash flow

FY25 revenue up 25% to £84.3m; adjusted PBT up 39% to £31.0m; EBITDA up 49% to £30.3m.
Cash generated from operations: £22.1m (conversion 116% of earnings).
Net debt reduced to £2.3m; leverage <0.1x; liquidity underpinned by Barclays facilities (term loan and RCF total £22m).
Recurring revenue remains high at 51% of group revenue; franchise-led, capital-light model supports cash generation.

Sustainability and growth outlook

Dividend growth (+22%) appears well supported by higher earnings, robust cash conversion, and very low leverage.
Cover steady at 1.8x suggests room to maintain a progressive path if trading holds, with policy anchored around a ~50% payout.
Multiple growth levers (Privilege programme, Financial Services penetration, Licensing expansion, AI initiatives) plus synergy capture from 2024 acquisitions provide forward visibility.

Structural changes and potential impacts

Integration of 2024 acquisitions (Belvoir Group and GPEA/The Guild & Fine & Country) now embedded; scale and synergies bolster earnings durability and dividend capacity.
Post-period acquisition (16 Jan 2026): 85% of Smart Advice Financial Solutions (Financial Services) — modest size, earnings accretive; supports recurring adviser income and cross-sell, positive for dividend resilience.
Capital allocation: Board reiterates disciplined M&A alongside progressive ordinary dividends; with leverage low, ongoing bolt-ons should be manageable without pressuring the dividend. Potential for buy-backs or special dividends considered if surplus capital arises.

Risks and watch items for dividend stability

Regulatory change (Renters’ Rights Act): heightened compliance may pressure some landlords; managed portfolio fell to 149k (from 153k). Group argues complexity favours professional management and platform scale, but landlord attrition remains a risk to lettings MSF.
Property market cyclicality and mortgage dynamics could affect sales/MSF and Financial Services volumes, though diversification and recurring revenue mitigate volatility.
Ongoing M&A appetite: while leverage is currently minimal, a step-up in deal activity or larger targets could temporarily reprioritise cash toward investment over incremental dividend increases.
Licensing member churn (Guild members down to 725 from 749) bears monitoring, though proposition enhancements aim to restore momentum.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
08/05/2025	02/06/2025	Final	12.00p	GBX
18/09/2025	03/10/2025	Interim	7.00p	GBX

Total (Annual Dividends Per Share): 19.00p

Dividend Yield = Annual Dividends Per Share (19.00p) ÷ Share Price (488.21p) = 3.89%

Ex Dividend Date	Payment Date	Type	Amount	Currency
07/05/2026	01/06/2026	Final	15.0000p	GBX
18/09/2025	03/10/2025	Interim	7.00p	GBX
08/05/2025	02/06/2025	Final	12.00p	GBX
19/09/2024	04/10/2024	Interim	6.00p	GBX
16/05/2024	12/06/2024	Final	7.40p	GBX
18/01/2024	02/02/2024	Special	2.00p	GBX
21/09/2023	06/10/2023	Interim	4.60p	GBX
11/05/2023	09/06/2023	Final	8.80p	GBX
22/09/2022	07/10/2022	Interim	4.20p	GBX
28/04/2022	27/05/2022	Final	7.80p	GBX
23/09/2021	08/10/2021	Interim	3.80p	GBX
11/02/2021	23/02/2021	2nd Interim	6.60p	GBX
10/09/2020	23/09/2020	Interim	2.10p	GBX
19/09/2019	01/10/2019	Interim	2.60p	GBX
18/04/2019	28/05/2019	Final	6.00p	GBX
20/09/2018	03/10/2018	Interim	2.40p	GBX
19/04/2018	21/05/2018	Final	5.40p	GBX
21/09/2017	06/10/2017	Interim	2.10p	GBX
20/04/2017	11/05/2017	Final	4.50p	GBX
22/09/2016	07/10/2016	Interim	2.00p	GBX
21/04/2016	16/05/2016	Final	4.10p	GBX
17/09/2015	30/09/2015	Interim	1.80p	GBX
23/04/2015	11/05/2015	Final	2.70p	GBX
17/09/2014	30/09/2014	Interim	1.30p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	6.000	7.400	2.000	GBX	15.400	14.920
2023	4.600	8.800		GBX	13.400	11.660
2022	4.200	7.800		GBX	12.000	15.380
2021	3.800			GBX	10.400	395.230
2020	2.100			GBX	2.100	-75.580
2019	2.600	6.000		GBX	8.600	10.250
2018	2.400	5.400		GBX	7.800	18.180
2017	2.100	4.500		GBX	6.600	8.190
2016	2.000	4.100		GBX	6.100	35.550
2015	1.800	2.700		GBX	4.500	246.150
2014	1.300			GBX	1.300

Number of Shares:

Payment	Paid	Amount
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