TPFG Reports Record H1 Revenue Growth and 17% Dividend Hike

TPFG’s record H1 and 17% dividend hike: what the numbers say

The Property Franchise Group has delivered a thumping first half, posting record revenue and lifting the interim dividend by 17%. Integration of last year’s deals is clearly pulling its weight, while cash generation has stepped up sharply. The Group remains guided to deliver full year trading in line with market expectations.

For newer readers, TPFG is the UK’s largest multi-brand property franchisor. It earns from three engines: Franchising, Financial Services and Licensing. Around 47% of Group revenue is recurring, which helps smooth the property cycle.

Key figures at a glance

Metric	H1 2025	H1 2024	Change
Group revenue	£40.3m	£26.9m	+50% (proforma +8%)
Adjusted EBITDA	£15.7m	£9.6m	+63% (proforma +22%)
Adjusted PBT	£14.5m	£9.1m	+59% (proforma +18%)
Adjusted basic EPS	18.3p	15.5p	+18%
Cash generated from operations	£13.2m	£3.7m	+249%
Net debt	£10.9m	£14.3m	Improved
Interim dividend	7.0p	6.0p	+17%

Jargon check: EBITDA is earnings before interest, tax, depreciation and amortisation, a proxy for cash operating profit. Proforma compares as if acquisitions had been owned in both periods. Adjusted figures exclude exceptional items and non-cash acquisition amortisation.

Divisional performance: franchising, finance and licensing firing together

Franchising delivers high-margin growth

Franchising revenue rose 20% to £21.8m. Within that, Lettings Management Service Fees increased 24% to £10.4m and Sales MSF jumped 28% to £5.0m, helped by reduced mortgage rates and changes to stamp duty thresholds. On a proforma basis, total MSF rose 9%.

The managed lettings portfolio is around 150,000 properties, down from c.153,000. Management attributes the c.3,000 drop to some landlord attrition ahead of the anticipated Renters Rights Bill and a slower pace of portfolio acquisitions. TPFG’s new Privilege programme is positioned to offset these pressures and add income.

Importantly, the franchising operating margin climbed to 58% from 50%, reflecting scale benefits and cost synergies.

Financial Services scales up with volume and productivity

Financial Services revenue increased 59% to £12.2m, with the division arranging 12,800 mortgages worth £2.3bn. Adviser numbers ended the period at 293, down modestly from 303, but productivity per adviser rose 15% to £63k. The operating margin improved to 16% from a negative 16% in H1 2024, a notable swing back to profitability.

Management is investing in AI to improve lead progression and qualification, aiming to deliver more meaningful leads and higher productivity into 2026.

Licensing benefits from Fine & Country scale

Licensing revenue stepped up to £6.3m, up 514%, with £5.0m of this recurring. Fine & Country now has 304 UK licensees and 66 international locations. The Guild has seen fewer members, which management expected due to its 12-month notice period, and is working on an improved proposition to reignite growth. The division’s operating margin increased to 29% from 22%.

Cash, debt and dividends: a stronger financial position

Cash generation was the star of the show. Cash from operations rose to £13.2m, lifting cash conversion to 87% from 53% last year. The balance sheet shows cash of £7.3m and bank debt of £18.3m at 30 June, resulting in net debt of £10.9m, down from £14.3m. Facilities include a term loan and an £8.0m revolving credit facility. The Group remains comfortable with its covenants.

The Board has declared a 7.0p interim dividend, payable on 3 October 2025 to shareholders on the register on 19 September 2025. For income investors, a 17% hike backed by stronger cash generation is the right kind of message.

Exceptional gain on GPEA deferred consideration

TPFG recorded a £1.35m exceptional gain after renegotiating the deferred consideration on the 2024 GPEA acquisition. The payment due was reduced and £3.65m was paid in the period. Exceptional items aside, adjusted profit before tax rose 59% to £14.5m.

Strategy in action: Privilege and AI rollouts

The newly launched Privilege programme is a lettings-focused suite that leverages the Group’s scale to deliver benefits to landlords and tenants while adding income to the network. It is designed to make the agent-managed model more compelling, particularly useful as the proposed Renters Rights Bill gathers attention.

Three AI initiatives are due to begin rolling out in H2: enhancing call handling, property management triage and financial services lead progression. Management expects the first tangible benefits this financial year, with further margin and revenue benefits to follow.

Outlook and guidance: steady as she goes

TPFG enters H2 with robust trading, a £43.5m sales agreed pipeline and tailwinds from recent base rate cuts. Management continues to expect full year trading to be in line with market expectations, while acknowledging uncertainty around any property-related taxation changes that might emerge in the Autumn Budget.

The Group is also still on track to deliver the full £2.5m of annual cost synergies from the 2024 acquisitions, having achieved a further £1m in H1 2025 and £1.4m since acquisition. Acquisition optionality remains, backed by a strong cash generative model.

Why this update matters for investors

• Quality of growth: Proforma revenue up 8% and adjusted EBITDA up 22% show that momentum is not just acquired, it is improving in the underlying business.
• Cash-backed dividends: Operations generated £13.2m of cash, enabling a 7.0p interim dividend and supporting the progressive policy.
• Diversification at work: With 47% recurring revenue and three divisions, TPFG has multiple levers. Licensing and Financial Services helped offset a softer lettings backdrop.
• Margin expansion: Division-level margins improved across the board, notably a turnaround in Financial Services to a 16% operating margin.
• Risk management: The Privilege programme is a practical response to landlord nerves ahead of the proposed Renters Rights Bill.

Balanced take: positives and watch‑outs

• Positives: Record H1, improved cash conversion, lower net debt, higher dividend, and clear progress on synergies and technology.
• Watch‑outs: Managed properties slipped to c.150,000 from c.153,000. The Autumn Budget could bring property tax changes that affect sales activity. The Licensing member mix, particularly at The Guild, needs the refreshed proposition to land.

Bottom line

This is a strong interim from TPFG. The Group is executing on integration, widening margins and converting profit to cash, while investing in AI and rolling out Privilege to defend and grow lettings income. Guidance remains steady, and the 17% dividend hike signals confidence. On balance, it is a constructive update with sensible acknowledgement of policy risk and market cyclicality.