Half Year 2026 Property Franchise Group PLC Earnings Call

September 11, 2026

Speaker #1: This is the Group PLC Interim Results 2026 Investor Presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab, situated on the right-hand corner of your screen.

Operator: Group PLC interim results 2026 investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged, and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Gareth Samples. Good afternoon to you.

Speaker #1: Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to CEO Gareth Samples.

Speaker #1: Good afternoon to you.

Speaker #2: Good afternoon, and thank you. Good afternoon, everybody. Delighted to be able to talk to you today about our recently delivered results. Another record for the Group—so a record for six months' performance.

Gareth Samples: Good afternoon, and thank you. Good afternoon, everybody. Delighted to be able to talk to you today about our recently delivered results. Another record for the group, so a record first 6 months performance. Ben and I are going to run you through that performance and talk about some of the things that we're working on in readiness for the remainder of the year and into 2027. What we're going to cover today, highlights, financial review, our strategy, and that's an ever developing strategy, outlook in the short and medium term, and then at the end of the presentation, give you the opportunity to ask any questions. Straight into highlights. Just for those who are new to the story, we are the UK's largest multi-brand property franchise group.

Speaker #2: Ben and I are going to run you through that performance and talk about some of the things that we're working on in readiness for the remainder of the year and into 2027.

Speaker #2: So what we're going to cover today: highlights, financial review, our strategy, and that's an ever sort of developing strategy, outlook, in the sort of short and medium term, and then at the end of the presentation give you the opportunity to ask any questions.

Speaker #2: So, straight into highlights. Just for those who are new to the story, we are the UK's largest multi-brand property franchise group. We have a proven multi-brand franchise model with 18 regional and national brands operating in sales, lettings, and financial services.

Gareth Samples: We have a proven multi-brand franchise model with 18 regional and national brands operating in sales, lettings, and financial services. We've been very acquisitive since inception. We've done 8 acquisitions. The 2 biggest in 2024 when we combined with our biggest competitor, Belvoir, along with The Guild and Fine & Country. Did that in March of 2024 and May of 2024. Since those 2 acquisitions, we created a very large property services business. We're now, from a footprint perspective, the largest in the UK, with 1,900 businesses that are part of the group. As a result of the Belvoir acquisition, we also had a financial services business, which is Mortgage Advice Bureau's largest introducer. That business today, run by Michelle Brook, has 290 employed and self-employed financial advisors, and that business will do circa 25,000 mortgages this year. Why do people like the story?

Speaker #2: We've been very acquisitive since inception. We've done eight acquisitions, the two biggest in 2024 when we combined with our biggest competitor, Belvoir, along with The Guild and Fine & Country. We did that in March 2024 and May 2024.

Speaker #2: And since those two acquisitions, it created a very large property services business. So we're now, from a footprint perspective, the largest in the UK, with 1,900 businesses that are part of the group.

Speaker #2: And as a result of the Belvoir acquisition, we also had a financial services business, which is Mortgage Advice Bureau's largest introducer of that business today.

Speaker #2: Run by Michelle Brook, it has 290 employed and self-employed financial advisors, and that business will do circa 25,000 mortgages this year. Why do people like the story?

Speaker #2: Well, 46% of our revenue is recurring. We are dominant in the letting space, so although we do sales and lettings, like most estate agency businesses, our business is very much weighted towards lettings, and that drives that recurring revenue.

Gareth Samples: Well, 46% of our revenue is recurring. We are dominant in the letting space. Although we do sales and lettings like most estate agency businesses, our business is very much weighted towards lettings and that drives that recurring revenue. We have a Fine & Country international business that operates in 19 distinct countries and have recently opened in Uruguay, Barbados, Dublin, Dubai. Really good uptake on that Fine & Country international model. We have really strong free cash generation. In the first 6 months of the year, GBP 13.4 million. As a result of bringing the business together in the size we now have, we've also invested in our senior leadership team, which is highly experienced, and we have a number of group MDs that run each of the businesses. We have a progressive dividend policy.

Speaker #2: We have a Fine & Country international business that operates in 19 distinct countries and have recently opened in Uruguay, Barbados, Dublin, and Dubai, so really good uptake on that Fine & Country international model.

Speaker #2: We have really strong free cash generation. In the first six months of the year, £13.4 million. As a result of bringing the business together to the size we now have, we've also invested in our senior leadership team, which is highly experienced, and we have a number of group MDs that run each of the businesses.

Speaker #2: And we have a progressive dividend policy, and again, that's been pushed forward this year with a 10% increase in the interim dividend. So that gives you a little bit of understanding about the group and its scale.

Gareth Samples: And again, that is pushed forward again this year with a 10% increase in the interim dividend. That gives you a little bit of understanding about the group and the scale. As a result of the coming together, we changed the way we reported. We split the business into three divisions, and we have added a four as we have integrated the new businesses together. Franchising is our biggest division and always will be. That is where our franchisees pay us a percentage of turnover on a monthly basis. A big financial services business, as we have already talked about, 290 financial advisors, Mortgage Advice Bureau's biggest introducer. That is a business that over the last 5 years, we have committed to a buy and build strategy. We are continually looking at opportunities to increase the size of that business.

Speaker #2: As a result of the coming together, we changed the way we reported. So we split the business into three divisions, and we've sort of added a fourth as we've integrated the new businesses together.

Speaker #2: So, franchising is our biggest division and always will be. That's where our franchisees pay us a percentage of turnover on a monthly basis.

Speaker #2: A big financial services business, as we've already talked about—290 financial advisors, mortgage advice bureaus, the biggest introducer. And that's a business that, over the last five years, we've committed to a buy-and-build strategy.

Speaker #2: So, we are continually looking at opportunities to increase the size of that business. We did an acquisition in January—a business called Saffson. It's likely we'll do another acquisition this year in that financial services space.

Gareth Samples: We did an acquisition in January, a business called SAFS, and it is likely we will do another acquisition this year in that financial services space. Then we have got licensing, which is very akin to franchising. It is a recurring revenue model, but this is where estate agents, independent estate agents, pay us a monthly fee for a range of services. It is recurring. They are on a 1-year contract with a 1-year notice period, so very sticky, and again, very good from a recurring revenue perspective. Then the platform element, which we have worked on extensively over the last 18 months.

Speaker #2: And then we've got licensing, which is very akin to franchising. It's a recurring revenue model, but this is where estate agents—independent estate agents—pay us a monthly fee for a range of services.

Speaker #2: So it's recurring. They're on a one-year contract with a one-year notice period, so very strong from a recurring revenue perspective. And then the platform element, which we've worked on extensively over the last sort of 18 months.

Speaker #2: Because we've now got 1,900 branches that are part of the group, we believe the platform—being able to offer distinct services and negotiate on behalf of all of our members for the keenest price for the right products, and then being able to spread that across the network—gives us a huge opportunity.

Gareth Samples: Because we have now got 1,900 branches that are part of the group, we believe the platform being able to offer distinct services and negotiating on behalf of all of our members the keenest price for the right product, and then being able to spread that across the network, gives us a huge opportunity. The first element of that platform model was Privilege, and we will touch on that a little bit later. We have also launched MarketMore, which is an enhanced marketing services package. We are working and will soon launch our AI Services package that will spread across the group. There are a number of options that we are looking at in the insurance space, conveyancing space, auction space, that will further enhance that sort of platform model. Think of the platform as really that sort of engine for growth going forward from an organic perspective.

Speaker #2: And the first element of that sort of platform model was privilege, and we'll touch on that a little bit later. We've also launched Market More, which is an enhanced marketing services package.

Speaker #2: We're working, and we'll soon launch our AI services package. That will spread across the group. There are a number of other options that we're looking at in the insurance space, conveyancing space, and auction space.

Speaker #2: That will further enhance that sort of platform model. So, think of the platform as really that sort of engine for growth going forward. From an organic perspective—so utilizing the size of the group to take more of the businesses’ spend into very cost-effective, complementary products for each of the businesses.

Gareth Samples: Utilizing the size of the group to take more of the sort of businesses spend into very cost-effective, complimentary products for each of the businesses. That gives you a little bit of insight into our business. Operational highlights. Our managed portfolio is the largest in the estate agency space. We look after 149,000 properties on behalf of landlords. Slightly down on 2025 due to the introduction of the Renters' Rights Act, which again, we will touch on later. But actually, probably a better number than we thought. We launched our Privilege program, which had three elements to it. One was a compliance saver, so a range of products that a business owner needs, things like Professional Indemnity insurance, all at a very attractive price. Most of our network have taken that product.

Speaker #2: That gives you a little bit of insight into our business. Operational highlights: our managed portfolio is the largest in the sort of estate agency space.

Speaker #2: We look after 149,000 properties on behalf of landlords. That's slightly down on 2025, due to the introduction of the Renter's Rights Bill, which again, we'll touch on later.

Speaker #2: But actually, probably a better number than we thought. We launched our privilege program, which had three elements to it. One was a compliance saver.

Speaker #2: So a range of products that a business owner needs, things like PI insurance, all at a very attractive price. And most of our network have taken that product.

Speaker #2: A rent guarantee product that gave the landlord comfort that if a tenant didn't pay their rent, the rent guarantee product would kick in, pay the rent, cover the court costs to evict that tenant, and pay for any damage that that tenant did while you were getting them evicted.

Gareth Samples: A rent guarantee product that gave the landlord comfort that if a tenant didn't pay their rent, the rent guarantee product would kick in, pay the rent, pay for the court cost to evict that tenant, and pay for any damage that that tenant did while you were getting them evicted. That's gone incredibly well. We've got nearly 50% of the total book covered, which gives both us, our franchisees, and our landlords huge comfort. That's been a real success. The third element of Privilege is the deposit income that historically has been lodged within each of the individual businesses that we've now pulled into one centralized account that will enable us to earn interest on that money and pay our franchisees some of that money back. Financial Services division had a record H1. They did 13,400 mortgages in the H1 against 12,800 last year.

Speaker #2: And that's gone incredibly well. We've got nearly 50% of the total book covered, which gives both us, our franchisees, and our landlords huge comfort.

Speaker #2: That's been a real success. And then the third element of privilege is the deposit income that historically has been lodged within each of the individual businesses.

Speaker #2: That we've now pulled into one centralized account, which will enable us to earn interest on that money and pay our franchisees some of that money back.

Speaker #2: The Financial Services division had a record half-year. They did 13,400 mortgages in the first half of the year. We have been working on our AI solutions for probably 15 months now.

Gareth Samples: We have been working on our AI solutions for probably 15 months now, and I'm delighted to say we've got four of those trials in place across the network. We actually have some franchisees also trialing that technology, and I'll give you some examples a little bit later in the presentation. AI is moving at pace, and I think we'll launch that over the next four to six weeks. We've made a strategic investment in a survey business, Meridian, which was the old Legal & General surveying business. Two reasons for that. One, it was a very, very good business. Two, it was sort of a hedge. There's talk about another sort of HIP, Home Information Pack, type product coming back into the market to try and speed up the transaction cycle.

Speaker #2: And I'm delighted to say we've got four of those trials in place across the network, and actually have some franchisees also trialing that technology.

Speaker #2: And I'll give you some examples a little bit later in the presentation. But AI is moving at pace, and I think we'll launch that over the next sort of four to six weeks.

Speaker #2: We've made a strategic investment in a survey business, Meridian, which is part of what was the old Legal & General surveying business. Two reasons for that.

Speaker #2: One, it was a very, very good business. Two, it was sort of a hedge. There's talk about another sort of "HIP"—Home Information Pack—type product coming back into the market to try and speed up the transaction cycle.

Speaker #2: And our view was, if that was to happen, we would need to guarantee our offices some survey supply. So I think that's a really good strategic investment.

Gareth Samples: Our view was if that was to happen, we would need to guarantee our offices some survey supply. I think that's a really good strategic investment, and we'll work with the guys at Meridian to move that business forward over time. As I've already touched on, we've already done a financial services acquisition at the start of 2026. They would be the operational highlights. I'm now going to hand you over to Ben, who's going to talk you through the financial highlights. Ben?

Speaker #2: And we'll work with the guys at Meridian to move that business forward over time. And then, as I've already touched on, we've already done a financial services acquisition at the start of 2020.

Speaker #2: 2026. So those would be the operational highlights. I'm now going to hand you over to Ben, who's going to talk you through the financial highlights.

Speaker #2: Ben.

Speaker #1: Perfect. Thanks, Gareth. Good afternoon, everybody. So, in terms of key financial highlights, revenue for the first half of the year was up 7% year over year to £43.3 million.

Ben Dodds: Perfect. Thanks, Gareth. Good afternoon, everybody. In terms of key financial highlights, revenue for the H1 of the year was up 7% year-over-year to GBP 43.3 million. Of that GBP 43.3 million, 46% we would define as recurring. That percentage has just dipped very slightly compared to last year. I think that demonstrates the higher level of growth that we've showed in financial services compared to the other divisions, which has just moved that backwards very slightly because financial services is typically non-recurring in nature. Adjusted profit before tax, GBP 15.5 million, up again 7% year-over-year. We've proposed an interim dividend of GBP 0.077, which is up 10% year-over-year. In terms of balance sheet and cash flow, net debt again improved versus this time last year, down to GBP 8.1 million.

Speaker #1: Of that, £43.3 million—46%—we would define as recurring. That percentage has just dipped very slightly compared to last year. I think that demonstrates the higher level of growth that we've shown in Financial Services compared to the other divisions, which has just moved that backwards very slightly, because Financial Services is typically non-recurring in nature.

Speaker #1: Adjusted profit before tax: £15.5 million, up again 7% year over year. And we've proposed an interim dividend of 7.7p, which is up 10% year over year.

Speaker #1: In terms of the balance sheet and cash flow, net debt again improved versus this time last year, down to £8.1 million. That obviously reflects not only the dividends that we've paid out during that time and the debt we've had to pay down, but also the acquisitions that Gareth alluded to earlier on.

Ben Dodds: And that obviously reflects not only the dividends that we paid out during that time and the debt we have had to pay down, but also the acquisitions that Gareth alluded to earlier on. Clearly leverage down at a very low level, which again, we are very happy with. Cash from operations up 2% to GBP 13.4 million. The reason why it is only up 2% compared to, say, the profitability improvement of 7% is because some of the elements that we have been looking at, particularly Privilege, have a slightly or have a longer cash cycle. We will talk a little bit more about Privilege later on. But very simplistically, the commission that we are earning on the rent guarantee, whilst we are able to recognize it in full at the point that the policy goes live, we are actually only receiving the cash evenly over the 12-month length of the policy.

Speaker #1: Clearly, leverage is down at a very low level, which, again, we're very happy with. And cash flow from operations is up 2% to £13.4 million. The reason why it's only up 2%, compared to, say, the profitability improvement of 7%, is because some of the elements that we've been looking at—particularly 'privilege'—have a slightly, or have a longer, cash cycle.

Speaker #1: So, we'll talk a little bit more about privilege later on. But, very simplistically, the commission that we're earning on the rent guarantee—whilst we're able to recognize it in full at the point that the policy goes live—we're actually only receiving the cash evenly over the 12-month length of the policy.

Speaker #1: So you've, in effect, got an accrued revenue with a trade receivable whilst that cash is coming through. And clearly, as we've actually penetrated more and grown the level of landlords that are on cover, that's obviously also increased the trade receivable.

Ben Dodds: So you have in effect got an accrued revenue with a trade receivable whilst that cash is coming through. Clearly, as we have actually penetrated more and grown the level of landlords that are on cover, that has obviously also increased the trade receivable. Still very strong, still very good cash generation, but that is why we have just seen that slight difference there. Adjusted basic EPS again up 8% to 19.8p. So again, overall, particularly in the backdrop of the wider market and potentially some of our peers, actually a really good H1 set of results at a top level. Just to go down a little bit just to kind of give you a feel for the split between the three divisions.

Speaker #1: Still very strong, still very good cash generation. But that's why we've just seen that slight difference there. And adjusted basic EPS, again, up 8% to 19.8p.

Speaker #1: So again, overall, particularly in the backdrop of the wider market and potentially some of our peers, actually a really kind of good first-half set of results at a top level.

Speaker #1: Just to go down a little bit, just to kind of give you a feel for the split between the three divisions—you can see that franchising is still very much the core of what we do as a business, making up well over 50% of our revenue and over 75% of our profit.

Ben Dodds: You can see that franchising still very much is the core of what we do as a business, making up well over 50% of our revenue and over 75% of our profit, then followed by financial services, and then finally licensing. You can see those pink numbers at the bottom just showing you the revenue growth in each of those divisions. So you can see financial services certainly, from a revenue perspective, improving significantly. Even from a profitability perspective, albeit there has been some reclassification that is making that look slightly better than it really should do, again, improving in financial services. Probably the most disappointing, and we will talk a little bit more about it later on, is the fact that licensing has largely remained flat and actually from a profitability perspective, gone backwards a little bit.

Speaker #1: Then, followed by financial services, and finally licensing. You can see those pink numbers at the bottom, just showing you the revenue growth in each of those divisions.

Speaker #1: So you can see financial services, certainly from a revenue perspective, improving significantly. And even from a profitability perspective, albeit there's been some reclassification that's making that look slightly better than it really should do.

Speaker #1: Again, improving in financial services. Probably the most disappointing—and we'll talk a little bit more about it later on—is the fact that licensing has largely remained flat.

Speaker #1: And actually, from a profitability perspective, we've gone backwards a little bit. And that profitability impact is because of some additional provisions that we've had to put in on the fine and country side.

Ben Dodds: And that profitability is because of some additional provisions that we have had to put in on the Fine & Country. We have been working at the start of H2 already in terms of a number of the initiatives that will help to improve and reverse that trend. But clearly, H1, we would have liked to have got that in quicker. So that just gives you a very quick overview. If we just deep dive briefly into each of the divisions. Gareth has already alluded to some of those kind of key KPIs that we monitor. If you have seen this presentation before, what I suppose we are trying to highlight too, is what the key operational KPIs that we monitor to ensure that we are driving the right ultimate results.

Speaker #1: And we have been working at the start of H2 already, in terms of a number of the initiatives that will help to improve and reverse that trend.

Speaker #1: But clearly, H1, we'd have liked to have got that in quicker. So that just gives you a very quick overview. If we just deep-dive briefly into each of the divisions.

Speaker #1: So, Gareth's already alluded to some of those kind of key KPIs that we monitor. And if you've seen this presentation before, what I suppose we're trying to highlight too is what the key operational KPIs are that we monitor to ensure that we're driving the right ultimate results.

Speaker #1: Breakdown of the revenue to give you a feel for that and a little bit more colour on how it's made up within each of the divisions.

Ben Dodds: Breakdown of the revenue to kind of give you a feel for how that's, a little bit more color, for how it's made up within each of the divisions, then obviously, some of the key maybe financial results that we're seeing coming out of the other end. So KPIs, managed lets, as Gareth's already alluded to, 149,000, down very slightly. But in the context of the Renters' Rights Act and the risk of landlords exiting, actually, we're happy that actually since the December year-end, it's stabilized and is flat. And certainly from this time last year, there's only a small reduction. Number of sales, again, look down and are down in terms of volume. But from a comparative perspective, H1 of 2025 had the stamp duty holiday implication, which meant that the first quarter, there was a huge rush of transactions going through. So actually, a slightly peaked comparative.

Speaker #1: And then obviously some of the key, maybe, financial results that we're seeing coming out of the other end. So KPIs, managed let units, as Gareth's already alluded to—149,000, down very slightly.

Speaker #1: But in the context of the Renters' Rights Act and the risk of landlords exiting, actually, we're happy that since the December year-end, it's stabilized and is flat.

Speaker #1: And certainly, from this time last year, there's only a small reduction. Number of sales, again, look down and are down in terms of volume.

Speaker #1: But from a comparative perspective, H1 2025 had the stamp duty holiday implication, which meant that in the first quarter there was a huge rush of transactions going through.

Speaker #1: So actually, a slightly peaked comparative. And as you can see, we've still managed to achieve overall, kind of, MSF sales growth. And then the third kind of key KPI, which is again very key to us, is how we're driving, kind of, productivity.

Ben Dodds: As you can see, we've still managed to achieve overall kind of MSF sales growth. The third kind of key KPI, which is again very key to us, is how we're driving kind of productivity. So the average MSF, so in effect, almost the average revenue that we're driving per franchisee. As you can see, that's increased up to 20.6K as well. So it's not just about those key almost volume metrics, it's how much are we working with those franchisees to make sure that they're driving more revenue and therefore we're getting more revenue in absolute terms as well. You can see in terms of the revenue splits in franchising, it stayed very consistent. Lettings still makes up a significant part of our franchising business, almost 50%. Sales has largely remained flat, as has the income from our owned offices.

Speaker #1: So the average MSF, so in effect almost the average revenue that we're driving per franchisee, as you can see, that's increased up to £20.6K as well.

Speaker #1: So it's not just about those key, almost volume metrics. It's how much are we working with those franchisees to make sure that they're driving more revenue, and therefore we're getting more revenue in absolute terms as well.

Speaker #1: You can see, in terms of the revenue splits in franchising, it's stayed very consistent. Lettings still makes up a significant part of our franchising business—almost 50%.

Speaker #1: Sales have largely remained flat, as has the income from our owned offices. And that 'Other' is where we're seeing some of the additional privilege income coming in.

Ben Dodds: That other is where we're seeing some of the additional Privilege income coming in. Then just on the right-hand side, again, in the context of the wider market, both in lettings with the Renters' Rights Act and some of the uncertainty around that, to achieve 2% lettings growth actually we're reasonably happy with. Sales growth, again, it's a reasonably kind of subdued market. Again, if you compare that to the 2025 first half, which had that stamp duty change, and to still be increasing the revenue despite lower volumes just demonstrates that some of our work that we're doing with franchisees to increase the overall kind of absolute commission or the commission percentage that they are achieving on a sale is coming through and is working.

Speaker #1: And then, just on the right-hand side, again in the context of the wider market, both in lettings with the Renters' Rights Act and some of the uncertainty around that, to achieve 2% lettings growth, actually, we're reasonably happy with that.

Speaker #1: Sales growth—again, it's a reasonably kind of subdued market. And again, if you compare that to the first half of 2025, which had that stamp duty change in, to still be increasing the revenue despite lower volumes just demonstrates that some of our work that we're doing with franchisees to increase the overall absolute commission or the commission percentage that they are achieving on a sale is coming through and is working.

Speaker #1: And as you can see, it's still an incredibly strong business, both in terms of its operating margin at 56%, and the percentage of recurring revenue at 68%.

Ben Dodds: As you can see, it's still an incredibly strong business, both in terms of its operating margin at 56% and the percentage of recurring revenue at 68%. Just quickly then for financial services. Similarly, number of advisors dropped very slightly since this time last year, down to 290. Number of transactions is increased up to 13,400. Again, on the productivity measure, again, really key for us to make sure we're maximizing productivity of our advisors up to 44.9K from just over 40.3K. You can see there that in terms of the mix between employed advisors and business partners, actually, it's taken a bit more of a shift to employed advisors.

Speaker #1: Just quickly then, for financial services, similarly, the number of advisors dropped very slightly since this time last year, down to 290. The number of transactions has increased, up to 13,400.

Speaker #1: And again, on the productivity measure, it's really key for us to make sure we're maximising productivity—our advisors are up to £44.9K from just over £40.3K.

Speaker #1: You can see there that, in terms of the mix between employed advisors and business partners, actually, it's taken a bit more of a shift to employed advisors.

Speaker #1: And you will have heard us speak before that, whilst business partners remain part of our model, we're very keen to be pushing and focusing on those employed advisors because, again, when it comes back to productivity, there's more ability to be able to influence our employed advisors versus the business partners, and therefore drive overall profitability.

Ben Dodds: And you will have heard us speak before that whilst business partners remained part of our model, we are very keen to be pushing and focusing on those employed advisors because, again, when it comes back to productivity, there is more ability to be able to influence our employed advisors versus the business partners, and therefore drive overall profitability. Revenue growth of 6%, the adjusted operating profit up to 20% as a result of some of the actions that we have taken with MAB and some of that reduction in the number of business partners, and a small level of recurring income as a result of the nature of this particular division. Then just finally, licensing. Again, those kind of two key KPIs, operational KPIs that we monitor. Number of licensees actually up very slightly to 1,039. The average license fee per licensee has actually come down.

Speaker #1: Revenue growth of 6%. Adjusted operating profit up to 20% as a result of some of the actions that we've taken with MAB, and some of that reduction in the number of business partners.

Speaker #1: And a small level of recurring income as a result of the nature of this particular division. And then, just finally, licensing. So again, those kind of two key KPIs—operational KPIs—that we monitor: number of licensees actually up very slightly to 1,000.

Speaker #1: And 39. The average license fee per licensee has actually come down. That, in practical terms, is not because we are charging any less. It's actually because, in a few examples within the Fine & Country business, we've had to put some provisions in against a couple of licensees where they are struggling in a market that is a bit subdued in that kind of top upper quartile.

Ben Dodds: That, in practical terms, is not because we are charging any less. It is actually because on a few examples within the Fine & Country business, we have had to put some provisions in against a couple of licensees where they are struggling in the market that is a bit subdued in that kind of upper quartile. So that has just brought down the overall result a little bit. Again, this division is very much a tale of two halves and two businesses. You have got Fine & Country, which certainly from a licensee perspective is doing well. It is continuing to grow both domestically and internationally. It is operating in a sector, in part of the market, which is probably finding it a little bit more challenging at the moment.

Speaker #1: And so that's just brought down the overall result a little bit. Again, this division is very much a tale of two halves and two businesses.

Speaker #1: You've got the filing country, which certainly—from a licensee perspective—is doing well. It's continuing to grow both domestically and internationally. It is operating in a sector, in a part of the market, which is probably finding things a little bit more challenging at the moment.

Speaker #1: That kind of upper quartile, over a million pound area, has definitely slowed down a little. And we're hearing that from the feedback from our franchised country members.

Ben Dodds: That kind of upper quartile, over a million-pound kind of area, has definitely slowed down a little, and we are hearing that from the feedback from our Fine & Country members. Whilst the, I suppose, the beauty of the licensing model means that the pure license fee does not necessarily change. Obviously, over the long term, if that licensee is struggling commercially, that can have challenges in terms of debt and the like, which is why we are very closely managing that. When it comes to The Guild on the other side, that is where we have historically seen a little bit of attrition within the number of advisors. We have relaunched that proposition in H1 of this year and actually then doing some pricing changes at the beginning of H2 of the year that will help to see our margin improving going forward.

Speaker #1: And whilst, I suppose, the beauty of the licensing model means that the pure license fee doesn't necessarily change, obviously over the long term, if that licensee is struggling commercially, that can have challenges in terms of debt and the like, which is why we're very closely managing that.

Speaker #1: When it comes to the Guild on the other side, that's where we've historically seen a little bit of attrition within the number of advisors.

Speaker #1: We've relaunched that proposition in the first half of this year, and actually, then did some pricing changes at the beginning of the second half of the year that will help us see our margin improving going forward.

Speaker #1: So, certainly helping to improve that revenue, that flat revenue growth that we saw in H1, but also, importantly, trying to move that adjusted operating profit up and over above 30%.

Ben Dodds: Certainly helping to improve that revenue, that flat revenue growth that we saw in H1, but also importantly, trying to move that adjusted operating profit up into and over above 30%. Just more generally, and a slide that I think is really key to understanding and ever more important right now to be able to demonstrate when times are a little bit more difficult. If you go back to when this business first listed and look at the dividend, the adjusted earnings per share, and the adjusted profit before tax that this business has earned over that time, you can see from this slide that, with the exception of the dividend paid in the COVID year, almost without exception, each one of those metrics has increased year over year. We have shown this slide before, and I suppose we are demonstrating that certainly in 2025, we continued that trend.

Speaker #1: Just more generally, and this is a slide that I think is really key to understanding—and ever more important right now—to be able to demonstrate when times are a little bit more difficult.

Speaker #1: If you go back to when this business first listed and look at the dividend, the adjusted earnings per share, and the adjusted profit before tax that this business has earned over that time, you can see from this slide that, with the exception of the dividend paid in the COVID year, almost without exception, each one of those metrics has increased year over year.

Speaker #1: And we've shown this slide before, and I suppose we're demonstrating that, certainly in 2025, we continued that trend, and clearly the first half of this year has put us in a great position to be able to deliver the consensus, which will continue that trend even further.

Ben Dodds: And clearly, the H1 of this year has put us in a great position to be able to deliver the consensus, which will continue that trend even further. I think really important to flag that that's obviously easy or easier to do in a time when the market looks great and the sales market is very buoyant and the lettings market similarly. If you think about some of the challenges that we've been having to navigate as a business with the Renters' Rights Act and a slightly slowing down sales market and still manage to deliver this result, even when perhaps some of our peers are struggling to do the same, I think it demonstrates the resilience of this business. The reason why, again, to reiterate why it's so resilient, is because of really principally two things.

Speaker #1: And I think it’s really important to flag that that’s obviously easy, or easier, to do in a time when the market looks great and the sales market is very buoyant. And unless it’s market similarly—if you think about some of the challenges that we’ve been having to navigate as a business with the Renters’ Right Act and a slightly slowing down sales market—and still manage to deliver this result, even when perhaps some of our peers are struggling to do the same, I think it demonstrates the resilience of this business.

Speaker #1: And the reason why, again, to reiterate why it's so resilient is because of really principally two things. It's the fact that we are predominantly letting and we have that high level of recurring income, which means we have the stability and consistency of income almost regardless of some of the wider economic conditions. But also, secondly, that franchise model means that if there are large movements in, say, the sales market, actually the impact on our P&L—because we're only broadly taking that 10% MSF charge—is absolutely diluted.

Ben Dodds: It's the fact that we are predominantly lettings and we have that high level of recurring income, which means we have the stability and consistency of income almost regardless of some of the wider economic conditions. But also secondly, that franchise model means that if there are large movements in, say, the sales market, actually the impact on our P&L, because we're only broadly taking that 10% MSF charge, is absolutely diluted. Therefore, we're able to navigate those ups and downs with other opportunities as we see fit. We're really excited with where we can continue to take this graph going forward. Then probably just finally from me on the finance section, then I'll hand back to Gareth. In terms of capital allocation, our strategy remains really quite consistent with what it has been previously when we've presented to you.

Speaker #1: And so, therefore, we're able to navigate those ups and downs with other opportunities as we see fit. We're really excited about where we can continue to take this graph going forward.

Speaker #1: And then, probably just finally from me on the finance section, and then I'll hand back to Gareth. In terms of capital allocation, our strategy remains really quite consistent with what it has been previously when we've presented to you.

Speaker #1: Financial resilience clearly very important for us. We've continued to pay our bank debt down. Organic growth investment, where we're able to, we look for those opportunities to invest capital light model.

Ben Dodds: Financial resilience, clearly very important for us. We've continued to pay our bank debt down. Organic growth investment where we're able to, we look for those opportunities to invest organically. This is a principally capital-light model. It doesn't require a huge amount of organic investment. But that said, we have done small bits in AI that Gareth has already referred to, and we'll talk a little bit further about later on. We've also been exploring some financial incentives for agent conversion, which again, Gareth will refer to later on. Progressive dividend, obviously, as I mentioned earlier on, we've increased by 10% for the half year dividends. M&A activity, again, Gareth has alluded to the acquisition and the investment that we've done in both Smart Advice Financial Services and Meridian. Then in terms of surplus capital, we've not done any specific buyback programs or anything like that.

Speaker #1: It doesn't require a huge amount of organic investment. But that said, we have done small bits in AI that Gareth has already referred to, and we'll talk a little bit further about that later on.

Speaker #1: And we've also been exploring some financial incentives for agent conversion, which, again, Gareth will refer to later on. Progressive dividend, obviously—as I mentioned earlier on—we've increased by 10% for the half-year dividend.

Speaker #1: M&A activity—again, Gareth has alluded to both the acquisition and the investment that we've done in both Smart Advice Financial Services and Meridian.

Speaker #1: And then, in terms of surplus capital, we've not done, say, any specific buyback programs or anything like that. However, because we believe that the share price has been at a point that would be economically advantageous for us to buy some shares in, we've been buying some shares into our EBT to make sure that we're making the most of that current price, and therefore reducing down any future dilution to shareholders from rewards to management.

Ben Dodds: However, because we believe that the share price has been at a point that would be economically advantageous for us to buy some shares in, we've been buying some shares into EBT to make sure that we're making the most of that current price, and therefore reducing down any future dilution to shareholders for awards to management. So that's how we've been looking at capital allocation. The strategy has very much stayed the same, and that's how we've been applying it within the H1 of the year. I think with that, I'll hand back over to Gareth to take you through the market.

Speaker #1: So that's how we've been looking at capital allocation. The strategy has very much stayed the same, and that's how we've been applying it within the first half of the year.

Speaker #1: And I think with that, I'll hand back over to Gareth to take you through the market.

Speaker #2: Thank you. So just an update on the market. So, lettings obviously have been disruptive with getting ready for the Renters’ Rights Act. For the first sort of five months of the year, for us as the franchisor, it was very much about ensuring we were ready, and then ensuring that our franchisees were trained and understood the Act and understood the new processes, procedures, and systems. So, that was quite distracting.

Gareth Samples: Thank you. Just an update on the market. Lettings has obviously been disruptive with getting ready for Renters' Rights Act. The first five months of the year for us as the franchisor was very much about ensuring we were ready and then ensuring that our franchisees were trained and understood the act and understood the new processes, procedures, and systems. That was quite distracting. But overall, with everything going on in the lettings market, it is still very strong. Rent inflation is probably slightly down on last year, running about 2.2% as opposed to 3.4% last year. Again, I think that is because everyone has been distracted in terms of getting ready. The number of properties becoming available and the demand for those properties is really good. There are eight people for every property that becomes vacant.

Speaker #2: But overall, with everything going on in the lettings market, it's still very strong. Rent inflation is probably slightly down on last year, running at about 2, 2.5% as opposed to 3.4% last year.

Speaker #2: But again, I think that's because everyone's been distracted in terms of getting ready. The number of properties becoming available, and the demand for those properties, is really good.

Speaker #2: So there's eight people for every property that becomes vacant, so we're able to fill those properties really, really quickly. So, demand for letting properties is still sound.

Gareth Samples: We are able to fill those properties really, really quickly. The demand for letting properties is still sound. The fundamentals in the lettings market, irrespective of what is going on in the economy, are still really, really strong, and we are really pleased about that. Financial services in the first six months of the year has been a record result, which is great. That is partly due to increased individual productivity, which is something we talked about last year, and we are focused on it, and Michelle has done a really good job on that. Partly to do with the improved commercials, and partly to do with the fact that Michelle has been running that business now for whatever, 15 years, has built an incredible reputation in the space, has a really high quality back book of her customers.

Speaker #2: So, the fundamentals in the lettings market, irrespective of what's going on in the economy, are still really, really strong. And we're really pleased about that.

Speaker #2: Financial services in the first six months of the year have been a record result, which is great. And that's partly due to increased individual productivity, which is something we talked about last year, and we're focused on it.

Speaker #2: And Michelle's done a really good job on that. Partly to do with the improved commercials. And partly to do with the fact that Michelle's been running that business now for whatever, 15 years, has built an incredible reputation in the space, has a really high-quality backbook of her customers.

Speaker #2: So even when the transaction cycle reduces, she's got a big back book where she can do product transfers and re-mortgages that then boost those numbers up.

Gareth Samples: Even when the transaction cycle reduces, she has got a big back book where she can do product transfers and remortgages that then boost those numbers up. We are really confident that irrespective of the market for the remainder of this year and next year, even if transactions fall slightly, we will be able to make up the difference through the high quality back book that Michelle has built over the long term. Then you have got sales, and sales have not been that bad this year. We always guide all of our investors that normal for us is 1.1 million transactions. Last year was 1.15, so a bit better. We think this year will be 1,050 to 1,080. So slightly down on 1.1, but no disaster. It is running about 5% less than last year.

Speaker #2: So we're really confident that, irrespective of the market, for the remainder of this year and next year, even if transactions fall slightly, we'll be able to make up the difference through the high-quality back book that Michelle has built over the long term.

Speaker #2: And then you've got sales. And sales haven't been that bad this year. We always guide all of our investors that normal for us is 1.1 million transactions.

Speaker #2: And last year was £1.15 million, so a bit better. And we think this year will be £1.05 million to £1.08 million.

Speaker #2: So slightly down on 1.1, but no disaster. So it's running about 5% less than last year. However, there are some sort of headwinds there.

Gareth Samples: However, there are some headwinds there that basically got worse, I guess, in the last three to four weeks. The key driver to housing transactions is mortgage rates. If the five-year mortgage rate goes above 6%, that will have a detrimental effect on volume. If it goes above 5.5%, it will also have a detrimental effect. We are watching the mortgage rates really, really closely. We have come out of the summer and activity is reasonable. I think our nervousness is probably the last two or three weeks with everything you have seen on the news. We are watching that with interest. The market at the moment, excluding central London, which we are not that represented in, is relatively good. We have got a budget coming up on 28 October, so we will see what, if any, stimulus for the housing market is included in the budget.

Speaker #2: But basically, it got worse, I guess, in the last three to four weeks. So the key driver to housing transactions is mortgage rates. If the five-year mortgage rate goes above 6%, that will have a detrimental effect.

Speaker #2: On volume, if it goes above 5.5%, it'll also have a detrimental effect. So we're watching mortgage rates really, really closely. We've come out of the summer, and activity is reasonable.

Speaker #2: I think our nervousness is probably the last two or three weeks, with everything you've seen on the news, so we're watching that with interest.

Speaker #2: The market at the moment, excluding central London, where we're not that represented, is relatively good. We've got a budget coming up on October 28th.

Speaker #2: So we'll see what, if any, stimulus for the housing market is included in the budget. I think there is an understanding—and we will tell everybody that will listen to us—that a strong economy requires a strong housing market.

Gareth Samples: I think there is an understanding, and we will tell everybody that will listen to us that strong economy requires a strong housing market. We will wait to see what comes in the budget. Ultimately, H2 2026 and 2027, depending on interest rates, we think will be somewhere between 1 million and 1.1 million transactions. If that is the case, then our numbers will be fine. The last time there was the million transactions was just after the Liz Truss budget in 2023. We are sort of going back to the activity levels from 2023, and you will see from our numbers back then that they were still pretty positive. That is a little bit about the market. I think I am now handing back to you, Ben, on strategy.

Speaker #2: So we'll wait to see what comes in the budget. But ultimately, in the second half of 2026 and into 2027, depending on interest rates, we think there will be somewhere between 1 million and 1.1 million transactions.

Speaker #2: And if that is the case, then our numbers will be fine. The last time there was a million transactions was just after the Liz Truss budget in 2023.

Speaker #2: So we're sort of going back to the activity levels from 2023, and you'll see from our numbers back then that they were still pretty positive.

Speaker #2: So that's a little bit about the market. I think I'm now handing back to you, Ben, on strategy.

Speaker #1: Yeah. So, for those of you that have listened to Gareth and me previously, we've talked about a strategy, which has been around how we drive sales, how we're driving lettings within the business, and how we're potentially driving some of the financial services.

Ben Dodds: Yeah. For those of you that have listened to Gareth and I previously, we have talked about a strategy which has been around how we drive sales, how we are driving lettings within the business, how we are potentially driving some of the financial services. I think we have realized as part of the platform strategy that we have been working on, but also the evolution of the business through the combination with Belvoir and GPA 2 years ago, that actually the strategy itself is now becoming much more evolved and much more driven around that kind of platform. Our strategy, really, and we now look at our strategy, I suppose, in three kind of key almost buckets. The first one is about growing the core business. What do we mean by that?

Speaker #1: And I think we've realized, as part of the platform strategy that we've been working on, but also through the evolution of the business with the combination of Belvoir and GPA two years ago, that actually the strategy itself is now becoming much more evolved and much more driven around that kind of platform.

Speaker #1: And so our strategy, really—and we now look at our strategy as it's in three kind of key, almost, buckets. The first one is about growing the core business.

Speaker #1: And what do we mean by that? Well, that's looking at how we are growing the number of franchisees that we have, the number of financial advisors, the number of licensees, and the size of that network.

Ben Dodds: Well, that is looking at how we are growing the number of franchisees that we have, the number of financial advisors, the number of licensees, the size of that network, and whether that is growing number of franchisees through converting agents through a better proposition. Whether that is attracting new licensees, again, by the fact that we have the best proposition because of the size and scale. It is not just about the volume of our network, it is actually the productivity. It is the core operating performance almost of that network. Again, referencing back to what I said earlier on, how are we driving the productivity per advisor? How are we making sure that the MSF per franchisee is as high as we can make it? That is really, I suppose, one element which is growing that kind of core business. The second then is how we are looking at driving cross-platform synergies.

Speaker #1: And whether that's a growing number of franchisees through converting agents through a better proposition, or whether that's attracting new licensees, again, by the fact that we have the best proposition because of the size and scale.

Speaker #1: But it's not just about the volume of our network; it's actually the productivity. It's the core operating performance, almost, of that network. So, again, referencing back to what I said earlier on: how are we driving the productivity per advisor?

Speaker #1: How are we making sure that the MSF per franchisee is as high as we can—as high as we can make it? So that's really, I suppose, one element which is growing that kind of core business.

Speaker #1: The second, then, is how we're looking at driving cross-platform synergies. So, we obviously have the three divisions now. And probably the best example of this, and the easiest to explain, is how we're making sure that the Financial Services division is being fed by the Franchising division or the Licensing division in terms of leads and opportunities for new mortgages or protection products.

Ben Dodds: We obviously have the three divisions now, and probably the best example of this and the easiest to explain is how are we making sure that the financial services division is being fed by the franchising division or the licensing division in terms of leads and opportunities for new mortgages or protection products. There are a number of other examples where between the three divisions, there are synergies to be made, particularly around our customer data, but also the way that we are sharing services and technology in order to be able to optimize how the combined output of those three divisions is working. The third aspect is really how are we expanding the platform. We have talked about the benefits of having this platform, of being able to push and apply products for the benefit of our network across the network.

Speaker #1: And there are a number of other examples where, between the three divisions, there are synergies to be made, particularly around our customer data, but also the way that we're sharing services and technology in order to be able to optimize how the combined output of those three divisions is working.

Speaker #1: And then the third aspect is really how we are expanding the platform. So we've talked about the benefits of having this platform and being able to push and apply products for the benefit of our network across the network.

Speaker #1: And actually, that's worked incredibly well. So, what other things are there that we can look to do, either organically and internally by creating it—such as our more marketing agency proposition—or acquire or invest in, such as the Meridian Survey opportunity? That is an additional offering that we're able to then apply across that network.

Ben Dodds: And actually that's worked incredibly well. So what other things are there that we can look to do, either organically and internally by creating it, such as our MarketMore marketing agency proposition, or acquire or invest in, such as the Meridian Survey opportunity, that is an additional offering that we're able to then apply across that network. That's really the third element. That is also therefore, those three buckets are also driving how we're thinking about acquisitions. Certainly, obviously in the growing the core business, it's whether there are still any franchise businesses to acquire. It's the buy and build that we've talked about previously in terms of financial services businesses. It's letting portfolios to drive that recurring income into our owned offices.

Speaker #1: And that's really the third element. And that is also there, so those three buckets are also driving how we're thinking about acquisitions. So, certainly, obviously, in growing the core business, it's whether there are still any franchise businesses to acquire.

Speaker #1: It's the buy and build that we've talked about previously in terms of financial services businesses. It's letting portfolios drive that recurring income into our owned offices.

Speaker #1: But again, in the expanding the platform, it's what complementary businesses are there out there that provide that either allow for us to be able to support the greater proportion of a franchisees or a network members wallet spend, or be in that kind of wider ecosystem of the property buying and letting kind of process.

Ben Dodds: But again, in the expanding the platform, it's what complementary businesses are there out there that provide, that either allow for us to be able to support the greater proportion of a franchisee's or a network member's wallet spend, or be in that kind of wider ecosystem of the property buying and letting kind of process. You can see we've made quite a lot of progress on all three of those aspects within 2026. In the H1 of 2026, we've driven the productivity really and increased the number or been working on acquiring the number of advisers into financial services. We've revisited The Guild value proposition in terms of those cross-platform synergies, and making sure that we're working as one combined group.

Speaker #1: And you can see we've made quite a lot of progress on all three of those aspects. Within 2026, in the first half of 2026, we've really driven productivity and increased the number of—been working on acquiring the number of advisors into financial services.

Speaker #1: We've revisited the Guild value proposition. In terms of those cross-platform synergies, and making sure that we're working as one combined group, certainly when it came to the Renters' Right tax, we took a group-wide approach on that to make sure that our licensees and our franchisees, and, where relevant, the advisors, were absolutely supported as best as we possibly could.

Ben Dodds: Certainly when it came to the Renters' Rights Act, we took a group wide approach on that to make sure that our licensees and our franchisees and where relevant, the advisers were absolutely supported as best as we possibly could. We increased partner income across the group, again by utilizing those synergies. Then on the expanding the platform side, clearly we've invested in Meridian. We've rolled out the Privilege and further kind of driven the penetration of that product throughout the H1. So you can see how we're trying to drive this business going forward and it really being around taking the scale, growing that core business and continuing to grow that scale and applying it where we possibly can across the platform for the benefit of the overall group. I think with that, I'll probably move on to outlook.

Speaker #1: We increased partner income across the group, again by utilizing those synergies. And then, on the expanding the platform side, clearly, we've invested in Meridian, we've rolled out the Privilege, and further driven the penetration of that product throughout the first half.

Speaker #1: So, you can see how we're trying to drive this business going forward, and it really is about taking the scale, growing that core business, and continuing to grow that scale and applying it where we possibly can across the platform, for the benefit of the overall group.

Speaker #1: And I think with that, I'll probably move on to Outlook.

Speaker #2: Brilliant. Thanks, Ben. So some really exciting stuff to share with you all in terms of AI and those that have listened to me and Ben over the last year, 18 months, will know that this was a real focus in terms of how could we utilize technology to drive either increased lead generation for our franchisees and ultimately turnover, or could we look at an efficiencies for our franchisees to make them more profitable.

Gareth Samples: Brilliant. Thanks, Ben. So, some really exciting stuff to share with you all in terms of AI and those that have listened to me and Ben over the last year, 18 months, will know that this was a real focus in terms of how could we utilize technology to drive either increased lead generation for our franchisees and ultimately turnover? Or could we look at efficiencies for our franchisees to make them more profitable? We've made huge progress in the last nine months. We're now at trial stage. Some of you will know that we've got 11 owned offices as part of the group. So all of the trials, we do in our owned offices, so if we're going to make any mistakes, they're our mistakes. I think that's really important in terms of credibility with our franchisees.

Speaker #2: And we've made huge progress in the last nine months. We're now at the trial stage. Some of you will know that we've got 11 owned offices as part of the group.

Speaker #2: So all of the trials we do in our owned offices. So if we're going to make any mistakes, they're our mistakes. And I think that's really important in terms of credibility with our franchisees.

Speaker #2: And currently, we've got four different AI trials going on. And I'll probably talk about a couple of them now, yeah? So, the first one, which I'm really excited about, is property management.

Gareth Samples: Currently we have four different AI trials going on, I will probably talk about a couple of them now. The first one, which I am really excited about, is property management. Again, I said last year, property management for us as a group is probably more important than it would be for others because we are predominantly a lettings business. Getting that property management triage via technology correct is game changing for us. We turned on live about 6 weeks ago in our owned offices, the property management AI negotiator. 4 weeks ago, we had a lady at 9:30 at night ring into the office and say, "I have no hot water." The virtual negotiator said, "I am sorry to hear that, let me take some details." Took some details, then said, "I am now going to transfer you over to WhatsApp.

Speaker #2: And again, I said last year, property management for us as a group is probably more important than it would be for others, because we are predominantly a lettings business.

Speaker #2: So getting that property management triage via technology correct is sort of game-changing for us. So, we turned on—live about six weeks ago in our owned offices—the property management AI negotiator.

Speaker #2: Four weeks ago, we had a lady at half past nine at night ring into the office and say, "I've got no hot water." The virtual negotiator said, "I'm sorry to hear that."

Speaker #2: Let me take some details, talk through some details." And then said, "I'm now going to transfer you over to WhatsApp. I'm going to send you a link."

Gareth Samples: I am going to send you a link. Open that link and we will continue the conversation." Sent the link, pressed the link, continued the conversation. The virtual neg said, "Please take a photo of your boiler." Took a photo of the boiler. "Please take a photo of the pipework beneath the boiler." Took a photo, sent it. Then advised to open one of the taps and repressurize the boiler. Did that. Lady had hot water about 35 minutes later. We had seen and listened to the call all the way through, and it was seamless. It was amazing. You then start to think about what would that have looked like without AI. The lady would have rang in at 9:30 in the evening. Nobody would have been there. They would have left a message on the answer machine.

Speaker #2: Open that link, and we'll continue the conversation. Send the link, press the link, continue the conversation. The virtual agent said, "Please take a photo of your boiler, a photo of the boiler. Please take a photo of the pipe work beneath the boiler." Took a photo and sent it.

Speaker #2: Then advised to open one of the taps and re-pressurize the boiler. Did that, lady had hot water about 35 minutes later. And we've seen and listened to the call all the way through, and it was seamless.

Speaker #2: It was amazing. You then start to think about what that would have looked like without AI. So, a lady would have rung in at half past nine in the evening.

Speaker #2: Nobody would have been there. They'd left a message on the answering machine. The staff coming in in the morning would have hopefully prioritized the answering machine messages, but maybe not.

Gareth Samples: The staff coming in in the morning would have hopefully prioritized the answer machine messages, but maybe not. Let us say by 10:30, they would have had a return call. I am not sure one of our property managers would advise the repressuring of the boiler. I think they may well have said, "We will get a plumber out to you." That plumber may have taken a day or 2 days. At best, it would have been towards the end of the day after she reported the issue. So we have gone from a 30-minute situation where the lady has got hot water to something that could have been 1 to 2 or 3 days later that that lady got hot water. As I say, the actual flow of that conversation was amazing. I was blown away by it. Better than we could have hoped for.

Speaker #2: But they're saved by 10:30. They'd have had a return call. I'm not sure. One of our property managers would have advised the repressurizing of the boiler.

Speaker #2: I think they may well have said, "We'll get a plumber out here." That plumber may have taken a day or two days at best.

Speaker #2: It would have been towards the end of the day after she reported the issue. So, we've gone from a 30-minute situation where the lady's got hot water, to something that could have been one, two, or three days later that that lady got hot water.

Speaker #2: So, as I say, the actual flow of that conversation was amazing. I was blown away by it—better than we could have hoped for.

Speaker #2: So, it's now been in all of the owned offices for about three weeks. What we've learned so far is that, without human intervention, it's been able to solve 31% of the issues that have come in.

Gareth Samples: It has now been in all of the owned offices for about 3 weeks. What we have learned so far is so far, without human intervention, it has been able to solve 31% of the issues that have come in. We thought between 20% and 30%, so the fact that it is over 30% is a really good thing. It has also identified other stuff that has been really clever as well in terms of being able to automatically getting a locksmith out and stuff like that. So that is really exciting. We have loads of our franchisees that want that, so that is really, really important. Second trial that I will talk about today is financial services appointment generation. We have turned this live with our EweMove brand. Every single customer that goes through a journey with EweMove, is now talked to via AI regarding their mortgage arrangements. Okay?

Speaker #2: We thought between 20 and 30, so the fact that it's over 30 is a really good thing. But it's also identified other stuff that's been really clever as well, in terms of being able to automatically get a locksmith out and stuff like that.

Speaker #2: So, that is really exciting. We've got loads of our franchisees that want that, so that's really, really important. The second trial that I'll talk about today is financial services appointment generation.

Speaker #2: So, we've turned this live with our YouMove brand. So every single customer that goes through a journey with YouMove is now talked to via AI regarding their mortgage arrangements, okay?

Speaker #2: And every single customer is asked whether they need a mortgage. For the ones that say yes, they need a mortgage, AI then takes them through a data capture exercise.

Gareth Samples: Every single customer is asked whether they need a mortgage. For the ones that say yes they need a mortgage, AI then takes them on a data capture exercise. You will remember I talked earlier in the financial services section about individual productivity. Historically, the only way when somebody says they would like mortgage advice, to be able to start that journey is to put them in front of the financial advisor. That financial advisor may spend 20 minutes establishing that that individual cannot get a mortgage. What we are trying to do is take some of that abortive time away from the financial consultant, do some of the data capture via technology so that we are passing to the financial consultant a better quality lead, with more likelihood of signing up.

Speaker #2: So you'll remember I talked earlier in the financial services section about individual productivity. Historically, the only way when somebody says they'd like mortgage advice to be able to start that journey is to put them in front of a financial advisor.

Speaker #2: And that financial advisor may spend 20 minutes establishing that that individual can't get a mortgage. So what we're trying to do is take some of that abortive time away from the financial consultant, do some of the data capture via technology, so that we are passing to the financial consultant a better quality lead with more likelihood of signing up.

Speaker #2: Now, we thought we'd get something like a 6% strike rate on the number of buyers coming through the YouMove journey, and that's currently running at 18%.

Gareth Samples: Now, we thought we would get something like a 6% strike rate on the number of buyers coming through the EweMove journey. That is currently running at 18%, so three times what we thought it was going to be. Again, that is quite embryonic. We are tweaking it, the conversations. We are looking at how much more information we can take. That is now taking information and then booking appointments in with financial consultants and so on and so forth. Do I think we can increase productivity? Yeah. Do I think I can increase efficiency? Absolutely. Those two things that we talk about, absolutely can be proven on the financial services test case. We are working with a bespoke partner in that AI space who is delivering tech that is unique for us. We have got good levels of demand from our franchise network.

Speaker #2: So, three times what we thought it was going to be. So, again, that's quite embryonic. We're tweaking it. The conversations—we're looking at how much more information we can take.

Speaker #2: But that is now taking information and then booking appointments into the financial consultant's diary. So do I think we can increase productivity? Yeah. Do I think I can increase efficiency? Absolutely.

Speaker #2: Absolutely. So those two things that we've talked about absolutely can be proven on the financial services test case. We're working with a bespoke partner in that AI space who's delivering tech that's unique for us.

Speaker #2: And we've got good levels of demand from our franchise network. So that will become, probably from September, our next platform product. And I think we'll have 100 to 200 franchisees that want to take that technology, put it into their business, and look at where that goes.

Gareth Samples: That will become, probably from September, our next platform product. I think we will have 100 to 200 franchisees that want to take that technology, put it into their business and look at where that goes. The final angle on AI is this customer for life journey. I have talked before about the 18.5 million data records that the group has access to. If I look back over the last 20 years, everybody has told you that data is gold, but nobody has ever been able to commercialize it. I do believe data is gold, but you need a cost-effective way of being able to interact with that data. I think technology finally is there that is going to enable us to do that.

Speaker #2: The final angle on AI is this customer for life journey. So I've talked to before about the 18 and a half million data records that the group has access to.

Speaker #2: And if I look back over the last 20 years, everybody's told you that data is gold, but nobody's ever been able to commercialize it.

Speaker #2: And I do believe data is gold, but you need a cost-effective way of being able to interact with that data. And I think technology finally is there.

Speaker #2: It's going to enable us to do that. So building this customer for life journey with multiple touchpoints, with each of the consumer being able to deliver really relevant, incredible content to the end user, with the right call to action, with the right products that are going to I think is a huge opportunity for this group.

Gareth Samples: Building this customer for life journey with multiple touch points with each of the consumer being able to deliver really relevant, incredible content to the end user with the right call to action or the right products that are going to, I think is a huge opportunity for this group. It is a big part of what we are going to be doing in the next six to nine months. We have got the people, we need to have the journey, we need the technology, and then we need the strategy in terms of how we are going to communicate with those customers. That will then deliver me valuations that I can give to my franchisees, mortgage appointments that I can give to my franchisees, which will increase their market share and increase their turnover. That is the other objective with our technology.

Speaker #2: And it's a big part of what we're going to be doing in the next six to nine months. So, we've got the people; we need to have the journey.

Speaker #2: We need the technology, and then we need the strategy in terms of how we're going to communicate with those customers. But that will then deliver me valuations that I can give to my franchisees, mortgage appointments that I can give to my franchisees, which will increase their market share and increase their turnover.

Speaker #2: So that's the other objective with our technology. The other piece, which I think is really exciting moving forward—the big opportunity for growth over the next three to five years—is agent conversion.

Gareth Samples: The other piece which I think is really exciting moving forward, the big opportunity for growth over the next three to five years is agent conversion. We now believe we have built a proposition that is comparing and we have test drove it on our franchisees. Privilege went really well. MarketMore gone really well. AI services really, really good. We also do loads of commercial deals that no individual business could go and negotiate on their own and get the rates that we get on CRMs, on portals, on insurance, on everything. We are now at a point where I genuinely believe we can give more back to a franchisee than they give to us in financial return. I get 10% of turnover on average. Let us say it is turning over half a million pounds, I get GBP 50,000.

Speaker #2: So, we now believe we've built a proposition that is compelling, and we've test-drove it on our franchisees, okay? So, Privilege went really well. Market More, gone really well.

Speaker #2: AI services, really, really good. We also do loads of commercial deals that no individual business could go and negotiate on their own and get the rates that we get on CRMs, on portals, on insurance—everything.

Speaker #2: So, we're now at a point where I genuinely believe we can give more back to a franchisee than they give to us in financial return.

Speaker #2: So I get 10% of turnover, on average. So let's say it's turning over half a million pounds. I get 50,000 pounds. I believe with everything I can now provide and offer, we give more than that back.

Gareth Samples: I believe with everything I can now provide and offer, we give more than that back. That is a unique position for a franchisor to be in. You then look at the market outside of us, and there are 18,500 small independent estate agents that on a day-to-day basis have to run their own website, run their own technology department, run their own CRM, run their own commercial department, run their own compliance department, look at their marketing, all of the things they have got to do. I am surprised they have got any time to sell or let a house. All of that cost takes time out of the business in terms of generating income but also costs more money than those products that I can provide at a better price to them. I can do it better and I can do it cheaper.

Speaker #2: And that's a unique position for a franchisor to be in. And you then look at the market outside of us, and there are 18,500 small independent estate agents that, on a day-to-day basis, have to run their own website, run their own technology department, run their own CRM, run their own commercial department, run their own compliance department, look at their marketing—all of the things they've got to do.

Speaker #2: I'm surprised I've got any time to sell or let a house, yeah? And all of that cost takes time out of the business, in terms of generating income.

Speaker #2: But it also costs more money than those products that I can provide at a better price to them. So I can do it better, and I can do it cheaper.

Speaker #2: So our next step, and this will be in H2 2026, the second half of this year, is to go out and start to talk to independent estate agents.

Gareth Samples: Our next step, and this will be in H2 2026, so second half of this year, is to go out and start to talk to independent estate agents. As I say, there are 18,500 of them. I have currently got about 700 franchises. If I get one in 20 of that 18,500 to agree with me and say, "Yeah, actually that proposition is fantastic," then I double the size of my franchise business. That is a really exciting growth opportunity that we want to explore now we have built that platform, now we have built that sort of product range. I am really excited about that. They are the things we are going to be working on in the second half of the year. Finally, just finish with we have got a really resilient business model.

Speaker #2: Let's say there's 18 and a half thousand of them. I've currently got about 700 franchises. So if I get one in 20 of that 18 and a half thousand to agree with me and say, "Yeah, actually, that proposition's fantastic," then I double the size of my franchise business.

Speaker #2: Okay, so that's a really exciting growth opportunity that we want to explore, now that we've built our platform, now that we've built that sort of product range.

Speaker #2: And yeah, I'm really excited about that. So there are things we're going to be working on in the second half of the year. And finally, I'll just finish with the fact that we've got a really resilient business model.

Speaker #2: I think that slide that Ben showed you—the continual growth of this business—when our peers, if you put some of our peers on that graph, it would look nothing like our graph.

Gareth Samples: I think that slide that Ben showed you, the continual sort of growth of this business when our peers, if you put some of our peers on that graph, it would look nothing like our graph. Should give you all confidence that we deliver every half year, every full year. We do not believe that will change. Our full year trading is, or remains in line with expectations. I think that is the final slide, Ben, yeah?

Speaker #2: This should give you all confidence that we deliver every half year and every full year, and we don't believe that will change. Our full-year trading is, or remains, in line with expectations.

Speaker #2: So I think that's the final slide, Ben, yeah?

Speaker #1: It is, yep.

Ben Dodds: It is, yep.

Speaker #2: Okay. So, one, thanks for listening. Two, we're going to move on to questions, I think, Ben.

Gareth Samples: Okay. So, thanks for listening. We are going to move on to questions, I think, Ben.

Speaker #3: Fantastic, that's great. Gareth, Ben, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated in the top right corner of your screen.

Operator: Fantastic. That is great. Gareth, Ben, thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q&A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard. Gareth, Ben, if I may, I will get us straight into the Q&A session. The first question here has many parts to it and reads as follows: Management described the departure of three financial services business partner hubs at the end of 2025 as managed.

Speaker #3: While the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via our investor dashboard.

Speaker #3: Gareth, Ben, if I may, I will get us straight into the Q&A session. The first question here has many parts to it, and reads as follows:

Speaker #3: Management described the departure of three financial services business partner hubs at the end of 2025 as 'managed.' Could you please explain who initiated the departures and why?

Operator: Would you please explain who initiated the departures and why, how many advisors were involved, their FY 2025 gross revenue, retained net commission and profit contribution, whether their departure was already reflected in FY 26 forecasts, whether any further hub departures are anticipated, and how the lost revenue profit contribution has been replaced?

Speaker #3: How many advisors were involved? The FY25 gross revenue retained, net commission, and profit contribution? Whether their departure was already reflected in FY26 forecasts? Whether any further hub departures are anticipated?

Speaker #3: And how has the loss revenue profit contribution been replaced?

Speaker #2: Okay, all right. Well, there's a fair amount to try and unpack there, so let me try and summarize as best as I can and cover off as much of that as possible.

Ben Dodds: Well, there's a fair amount to try and unpack there. Let me try and summarize as best as I can and try and cover off as much of that as I possibly can. You'll remember that business partners are effectively akin to franchisees within financial services. They are working with us as the appointed representative of MAB in order to be able to trade. In effect, using us as the middleman because they are typically too small to be of interest to MAB to deal with directly. That's actually a really important point for why these certainly 2 out of the 3 left. The third one was actually just a mutual departure that was only 2 advisors anyway, so it wasn't really an issue.

Speaker #2: So, you'll remember that business partners are effectively akin to franchisees within financial services. They are working with us as the appointed representative of MAB in order to be able to trade.

Speaker #2: So, in effect, using us as the middleman, because they are typically too small to be of interest to MAB to deal with directly. And that's actually a really important point for why certainly two out of the three left. The third one was actually just a mutual departure; that was only two advisors anyway.

Speaker #2: So it wasn't really an issue. But the two key business partners that moved to Mortgage Advice Bureau did so effectively because they had come to the end of their five-year agreement with ourselves, with Brook, and they had grown during that time period to a size where, actually, Mortgage Advice Bureau would deal with them directly.

Ben Dodds: The 2 key business partners that moved to Mortgage Advice Bureau was effectively because they had come to the end of their 5-year agreement with ourselves, with Brook Financial. They had grown during that time period to a size where actually Mortgage Advice Bureau would deal with them directly. Commercially, it made more sense for those business partners to contract directly with Mortgage Advice Bureau than it did to retain with The Property Franchise Group, who, as you can imagine, being in the middle, are taking a proportion of that value chain. Therefore, taking us out and going directly to Mortgage Advice Bureau meant that they were going to get better terms. There's a couple of things around this. Answering, I think, some of the specifics in terms of the amount of advisors that were involved, it was about 25 across those 2 businesses.

Speaker #2: So commercially, it made more sense for those business partners to contract directly with Mortgage Advice Bureau than it did to retain with TPFG, who, as you can imagine, being in the middle, are taking a proportion of that value chain.

Speaker #2: And so, therefore, taking us out and going directly to Mortgage Advice Bureau meant that they were going to get better terms. Now, there's a couple of things around this.

Speaker #2: So, answering, I think some of the specifics in terms of the amount of advisors that were involved—it was about 25 across those two businesses.

Speaker #2: In terms of the amount of revenue and the profitability, as I've talked about before, the business partners, whilst an established part of the business model up to this point, are not particularly profitable because we are just taking that small chunk as the commission passes through.

Ben Dodds: In terms of the amount of revenue and the profitability, as I've talked about before, the business partners, whilst an established part of the business model up to this point, is not particularly profitable because we are just taking that small chunk as the commission passes through. Unfortunately, though, under the accounting rules, we have to recognize the revenue gross. In terms of the amount of revenue that they reflected, it was about GBP 1 million, literally just under GBP 1 million. The profitability was somewhere in the region of about GBP 0.1 million. You can see pretty small in the grand scheme of things. Was it in the 2026 forecasts? Yes, but obviously in terms of then our ability to be able to replace that is through some of the renegotiation that we've done with Mortgage Advice Bureau.

Speaker #2: Unfortunately, though, under the accounting rules, we have to recognize the revenue gross. So in terms of the amount of revenue that we that they reflected, it was about a million pounds, literally just under a million pounds.

Speaker #2: And the profitability was some of the reason, or about £0.1 million, so you can see it's pretty small in the grand scheme of things. Was it in the 2026 forecasts?

Speaker #2: Yes, but obviously, in terms of then our ability to be able to replace that, it is through some of the renegotiation that we've done with Mortgage Advice Bureau.

Speaker #2: And the other very quick point I will make here is: clearly, the right question to be asking would be, why would we continue to do the business partners if they're just going to get to a certain size and then move over to Mortgage Advice Bureau?

Ben Dodds: The other very quick point I will make here is clearly the right question to be asking would be, why would we continue to do the business partners if they're just going to get to a certain size and then move over to Mortgage Advice Bureau? We had the exact same conversation with Mortgage Advice Bureau and made sure that in a scenario where that does happen, that there is still some commercial benefit coming to us from Mortgage Advice Bureau. The final thing on this particular point is, do we expect this to be happening every month? Are there lots more to go? Those 2 just came across both at the same time. It was a timing issue rather than anything else.

Speaker #2: And we had the exact same conversation with Mortgage Advice Bureau and made sure that, in a scenario where that does happen, there is still some commercial benefit coming to us from Mortgage Advice Bureau.

Speaker #2: And the final thing on this particular point is: do we expect this to be happening every month? And are there lots more to go?

Speaker #2: Those two came at a particular—came at a—just came across both at the same—both at the same time. It was a timing issue rather than anything else.

Speaker #2: If I look forward to the next 12 months, because obviously, we have visibility of when contracts are coming to an end, we have foresight as to whether these risks come up.

Ben Dodds: If I look forward the next 12 months, because we have visibility of when contracts are coming to an end, we have foresight as to whether these risks come up. Generally, actually, the size of the businesses that we have remaining within that business partner model are not sufficient enough, even if they were coming to the end of their five-year term, in order to be able to contract directly with MAB. We do not see this as being a particularly ongoing issue where we are going to see a significant amount of decrease over time. But we have also tried to protect ourselves financially. So that would be the answer to that question.

Speaker #2: And generally, actually, the size of the businesses that we have remaining within that business—if they were coming to the end of their five-year term—would be able to contract directly with MAB.

Speaker #2: So, we don't see this as being a particularly ongoing issue where we're going to see a significant amount of decrease over time. But we have also tried to protect ourselves financially.

Speaker #2: So, yes, that would be the answer to that question.

Speaker #3: That's great. Thank you, Ben, for the detailed answer. Another question here asks, "Are you aware of the success of Rent Guarantor Holdings PLC and their rent product franchisees?"

Operator: That is great. Thank you, Ben, for the detailed answer. Another question here asks, "You will be aware of the success of RentGuarantor Holdings PLC and their rent guarantee service. Do you offer a similar product to franchisees, and if so, how is it performing?

Speaker #3: And if so, how has it been performing?

Speaker #2: Yeah, so, I mean, we've been asked this question a lot over the last couple of days, actually. So, just to sort of give context, the rent guarantee we offer is for landlords, and it guarantees rent in the event of a tenant not paying their rent—the core cost to evict them.

Gareth Samples: Yeah. We have been asked this question a lot over the last couple of days, actually. Just to context, the rent guarantee we offer is for landlords, and it guarantees rent in the event of a tenant not paying their rent, the court cost to evict them, and any damage that tenant does. Okay? RentGuarantor is guaranteeing the tenant, and is usually for students or overseas students who need a guarantor, or for people that have not passed the traditional lettings reference, or for some people that may be on benefits. So they are completely different markets. We have a student business that does have guarantor insurance, and most of the other insurers offer a product that is similar.

Speaker #2: And any damage that the tenant does, okay? Rent-guarantor is guaranteeing the tenant and is usually for students or overseas students who need a guarantor, or for people that haven't passed a traditional lettings reference, or for some people that may be on benefits.

Speaker #2: So they're completely different markets. We have a student business that does have guarantor insurance, and most of the other insurers offer a product that is similar.

Speaker #2: So instead of having your mum and dad guarantee the rent in the event of default, you take out an insurance policy with RentGuarantor that will cover that rent in the event of default, okay?

Gareth Samples: So instead of having your mom and dad guarantee the rent in the event of default, you take out an insurance policy with RentGuarantor that will cover that rent in the event of default, okay? I think it is for two months. So we have a similar policy, but it is a very small part of our market.

Speaker #2: And I think it's for two months, so we have a similar policy, but it's a very small part of our market.

Speaker #3: Thank you, Gareth. Moving on—you did well to get better terms with Mortgage Advice Bureau. What is the background? Did you just lower the rate, or is it a volume discount, or similar?

Operator: Thank you, Gareth. Moving on. You did well to get better terms with Mortgage Advice Bureau. What is the background? Did you just lower the rate, or is it a volume discount or similar? Why did they agree? Could you step up the margin further by negotiating something even better?

Speaker #3: And why did they agree? Could you increase the margin further by negotiating something even better?

Speaker #2: So, obviously, we don't want to go around commercials with one of our key partners. But I think what we can probably share is that we have a fantastic relationship with Peter at Mortgage Advice Bureau and the entire senior management team there.

Ben Dodds: Well, obviously we don't want to get into specific details around commercials with one of our key partners. I think what we can probably share is we have a fantastic relationship with Peter at Mortgage Advice Bureau and the entire senior management team there. We were able to negotiate a reduction in our core rate. How was that able to come about? Well, I think there was a general reflection that despite how good that relationship is, in the size and the percentage that TPFG makes up of the Mortgage Advice Bureau book, the volume and the scale that we'd grown to warranted some form of commercial improvement. It wasn't too much with Peter's arm behind his back. I think it was a general reflection of how the relationship has grown over time along with our business.

Speaker #2: We were able to negotiate a reduction in our core in our core rate. And how was that able to come about? Well, I think there was a general reflection that despite how good that relationship is, in the size and the percentage that TPFG makes up of the mortgage advice bureau book, and that the volume and the scale that we'd grown to warranted some form of commercial improvement.

Speaker #2: So it wasn't too much with Peter's arm behind his back. I think it was a general reflection of how the relationship has grown over time, along with our business.

Speaker #3: Thank you. Switching gears here, a question regarding your 10% annual adjusted PBT growth target. Do you view that 10% figure as a conservative baseline, where organic growth and platform execution cover the target even in quiet markets?

Operator: Thank you. Switching gears here, a question regarding your 10% annual adjusted PBT growth target. Do you view that 10% figure as a conservative baseline where organic growth and platform execution cover the target, even in quiet markets? Do you see 10% as a realistic midterm ceiling across a full property market cycle?

Speaker #3: Or do you see 10% as a realistic mid-term ceiling across a full property market cycle?

Speaker #2: Yeah, no, really good question. I think 10%, in terms of the stuff we're doing now—the organic growth, the rent inflation, the portfolio acquisitions that are at the franchisee level, and indeed at a franchise-all level into our owned offices—is reasonable.

Gareth Samples: Yeah, no, really good question. I think 10% in terms of the stuff we're doing now, the organic growth, the rent inflation, the portfolio acquisitions at a franchisee level, and indeed a franchisor level into our own offices, is reasonable. It's always been between 5% and 10%, that organic growth. Obviously, as we get bigger, it gets more challenging. I think there's so much more to be excited about, and yeah. The organic might be down one year, but one of the initiatives may deliver more. I think it's a realistic target for people to focus on. I think if the agent conversion thing goes beyond our dreams, that would supercharge it. If we were able to do a big complementary acquisition, that would supercharge it. We're looking to do both those things all of the time.

Speaker #2: It's always been between 5% and 10%, that organic growth. Obviously, as we get bigger, it gets more challenging. But I think there's so much more to be excited about.

Speaker #2: And yeah, so, the organic might be down one year, but one of the initiatives may deliver more. So, I think it's a realistic target for people to focus on.

Speaker #2: I think if the agent conversion thing goes beyond our dreams, that would supercharge it. If we were able to do a big, complementary acquisition, that would supercharge it.

Speaker #2: So we're looking through both those things all of the time. If AI takes stuff and 700 franchisees take it, that would supercharge it. So I think there are enough levers for us to be comfortable achieving that level.

Gareth Samples: If AI takes off and 700 franchisees take it, that would supercharge it. I think there are enough levers for us to be comfortable of achieving that level. But, as I say, we keep talking about the market. The market is not easy. When you look at our peers and the results they are delivering, we are bucking the trend. To deliver the result we have done in 2026 with everything that has been going on, has been a challenge, but also really, really satisfying. Hope that answers the question.

Speaker #2: But as I say, we keep talking about the market. The market is—not easy. When you look at our peers and the results they're delivering, we are bucking the trend.

Speaker #2: So, to deliver the result we have done in 2026, with everything that's been going on, has been a challenge but also really, really satisfying.

Speaker #2: Hope that answers the question.

Speaker #3: Perfect. Thank you. Next up is, "Please, could you talk more about the potential for interest income on pooled deposits? How much could it be?"

Operator: Perfect. Thank you. Next up is, please could you talk more about the potential for interest income on pooled deposits? How much could it be? How would you share us out? What is the timeline?

Speaker #3: How would you share it out, and what is the timeline?

Speaker #2: Yeah, I'm happy to do that. So, if we're just trying to keep the numbers simple for the time being—as we mentioned earlier on—we've got 149,000 policies.

Ben Dodds: Yeah, I am happy to do that. If we just try and keep the numbers simple for the time being. We mentioned earlier on, we have got 149,000 policies, sorry, managed properties. I think out of that, in terms of probably the total value of deposits that we could achieve is, I think a ceiling is probably in the range of about GBP 130 million. The way that we set up the scheme was always supposed to be about providing benefits to the franchisees on something that they just were not earning any income on. Very broadly, the insured scheme that we are using has as a cost of about, let us say, 2%. If I am able to achieve a well-rounded kind of 4% in terms of interest, then we are then splitting that 50/50 between ourselves and the franchisee.

Speaker #2: Sorry—policies, managed properties. I think, out of that, in terms of probably the total value of deposits that we could achieve, I think a ceiling is probably in the region of about £130 million.

Speaker #2: The way that we set up the scheme was always supposed to be about providing benefits to the franchisees on something that they just weren't earning any income on.

Speaker #2: So, very broadly, the insured scheme that we're using has a cost of about—let's say—2%. If I'm able to achieve a well-rounded kind of 4% in terms of interest, then we're then splitting that 50/50 between ourselves and the franchisee.

Speaker #2: So let's say 1% on £130 million would therefore be about £1.3 million worth of financial benefit to us a year. I do think it's worth flagging here that whilst this is absolutely our plan, we started this and I think we talked about it as far back as 2024.

Ben Dodds: Let us say, 1% on GBP 130 million would therefore be about GBP 1.3 million worth of financial benefit to us a year. I do think it is worth flagging here that, whilst this is absolutely still our plan, we started this, and I think we talked about it as far back as 2024. We are already rolling out. We have got about GBP 30 million in that bank account right now, and that will, over time, trend up as new deposits come into the account. But the government has signaled over the last few months that they may look to stop allowing these insured schemes to be in existence and just focus on custodial schemes where that interest is not available. This is something where we are continuing on with the plan, we are taking advantage of it whilst it is available.

Speaker #2: We're already rolling out. We've got about $30 million in that bank account right now, and that will, over time, trend up as new deposits come into the account.

Speaker #2: But the government has signalled over the last few months that they may look to stop allowing these insured schemes to be in existence, and just focus on custodial schemes where that interest isn't available.

Speaker #2: So, this is something where we're continuing on with the plan. We're taking advantage of it whilst it's available. But I think it would be wrong of us to say that it's in our long-term, kind of five-to-ten-year plan, purely because of the messaging that's come from the government.

Ben Dodds: But I think it would be wrong of us to say that it is in our long-term kind of 5 to 10-year plan, purely because of the messaging that has come from the government.

Speaker #3: Perfect. Thank you. I'm squeezing in this last question as we reach the end of the session. You've spoken in the past about potential acquisitions of competitors.

Operator: Perfect. Thank you. I am squeezing this last question in as we reach the end of the session. You have spoken in the past about potential acquisitions of competitors, some listed. Given the market is tougher at present, does this make it more or less likely that you can agree a deal? How would you finance a bigger deal?

Speaker #3: Some listed, given the market is tougher at present, does this make it more or less likely that you can agree a deal?

Speaker #3: How would you finance a bigger deal?

Speaker #2: So, conscious of the time, I'll keep it really quick. So, in terms of more or less likely, I suppose you would argue that potentially there are better opportunities and maybe, on the face of it, better values out there.

Ben Dodds: Conscious of time, I will keep it really quick. In terms of more or less likely, I suppose you would argue that potentially there are better opportunities and maybe on the face of it, better values out there. That said, it is obviously very much down to the board and its shareholders in terms of what it is willing to accept and their own, I suppose, depiction or perception of what the value of that business is. I do not think it is always necessarily as simplistic as that. But are there potentially opportunities out there? Yes. How would we finance a bigger deal? Again, it depends, particularly obviously in a listed environment, how we structured it.

Speaker #2: That said, it's obviously very much down to the board and its shareholders in terms of what it's willing to accept, and their own, I suppose, depiction of the perception of what the value of that business is.

Speaker #2: So, I don't think it's always necessarily as simplistic as that. But are there potentially opportunities out there? Yes. How would we finance a bigger deal?

Speaker #2: Again, it depends particularly, obviously, on a listed environment, how we structured it. So we could potentially, depending on whether it reflected the appropriate kind of change in value, it might be—and it might warrant and drive better value for our shareholders—if we were to end up ultimately at a lower value but a higher level of, maybe, shares provided as part of the consideration.

Ben Dodds: We could potentially, depending on whether it reflected the appropriate kind of change in value, it might be, and it might warrant and drive better value for our shareholders if we were to end up at ultimately a lower value but a higher level of maybe shares provided as part of the consideration. Clearly, if we try and maximize the cash element of it, that can reduce down the impact on the earnings per share, but then does similarly have an impact on the potential premium that you might have to add. There are very much levers to and fro that we would have to consider.

Speaker #2: Clearly, if we try to maximize the cash element of it, that can reduce the impact on the earnings per share. But then, it does similarly have an impact on the potential premium that you might have to add.

Speaker #2: So there are very much kind of levers to and fro that we'd have to consider. In terms of how much financing is available to us, I mean, on our business alone, a 30 million EBITDA that we achieved in 2025, there is, I would say, easily the ability to be able to get 60 to 75 million pounds' worth of debt if we so if we so needed it on our own performance, let alone before taking into account anybody else.

Ben Dodds: In terms of how much financing is available to us, on our business alone, a GBP 30 million EBITDA that we achieved in 2025, there is, I would say, easily the ability to be able to get GBP 60 to 75 million worth of debt if we so needed it on our own performance, let alone before taking into account anybody else. There are options out there.

Speaker #2: So, there are options out there.

Operator: Well, look, Gareth, Ben, thank you for addressing those questions from investors today. The company can review all questions submitted today, and we will publish those responses on the platform where appropriate to do so post the meeting. But Gareth, before we direct investors to provide you with their feedback, which I know is particularly important to yourself and the company, could I please just ask you for a few closing comments?

Speaker #3: That's great. Well, look, Gareth Bent, thank you for addressing those questions from investors today. And of course, the company can review all questions submitted today, and we'll publish those responses on the platform, where appropriate, after the meeting.

Speaker #3: But Gareth, before we direct investors to provide you with their feedback, which one is particularly important to yourself and the company? Could I just ask you for a few closing comments?

Gareth Samples: Absolutely. As always, thanks for taking an interest in the business. I hope you are as excited as we are about the future and the opportunities that we have got, and I look forward to updating you in the next six months. Thank you very much.

Speaker #2: Absolutely. As always, thanks for taking an interest in the business. I hope you're as excited as we are about the future and the opportunities that we've got, and I look forward to updating you in the next six months.

Speaker #2: Thank you very much.

Speaker #3: Fantastic. Thank you once again for updating investors today. Could I please ask investors not to close this session? As you know, we are automatically redirected to provide your feedback, which will help the company better understand your views and expectations.

Operator: Fantastic. Thank you once again for updating investors today. Could I please ask investors now to close this session, as you will now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the Mitrate team, we would like to thank you for attending today's presentation, and good afternoon to you.

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Half Year 2026 Property Franchise Group PLC Earnings Call

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