Belvoir weathered mini budget interest rate storm with small dip in profit
Belvoir reported a small dip in pre-tax profit this morning as its chief cited a “general pressure on interest rates” from the mini-budget for its results.
For the year, the London-listed property firm reported pre-tax profits dip two per cent to £9.1m from £9.3m, saying the budget from Liz Truss shook the market.
The Lincolnshire headquartered group said its revenues increased 14 per cent to £33.7m up from £29.6m, which was bolstered by two acquisitions it completed that year.
Chief of Belvoir, Dorian Gonsalves, said that the fall out from the disastrous mini budget in September “crystallised” the general pressure on interest rates and created “significant uncertainty in the financial markets”.
As a result the group saw the number of house sales down 11 per cent to 10,970 compared to 12,320 in 2021.
Gonsalves continued: “Despite challenging market conditions, we remain confident that the resilience and diversity of our business model and multi-brand strategy will enable the group to perform well against the market as a whole during 2023 and beyond.”
It comes as last month, both Persimmon Homes and Barratt Developments saw their share price tumble following the publication of their financial results, as investors remain cautious about pumping their funds into the residential market due to a hike in interest rates.
Belvoir operates 487 offices across seven brands specialising in residential lettings, property management, residential sales and property-related financial services.