Posted:18-May-2012
Martin & Co franchise Residential lettings: A recession-proof industry?
Martin & Co is a success story that rivals some of the oldest businesses in the property sector.
While the rentals market has grown 7.5% per annum compound over the last ten years, the Martin & Co group itself has grown at a staggering 20% without resort to private equity or a public market listing. Its franchise model has allowed the group to continue to access bank funding since the credit crisis and draw down £4.5m in startup funding in 5-years.
Group fee income grew 15% in 2011 and is on target for £36m in 2012. Moreover, the network has grown fee income in every one of the 73 months in the six years to January 2012.
Martin & Co, which celebrates 26 years in business this year, now manages in excess of 27,000 properties through 182 trading franchisees, who operate nationally, from Folkestone to Aberdeen, and from Truro to Belfast, with offices in London, in Chelsea, London Bridge and Islington to boot.
Now headquartered in the famous seaside resort of Bournemouth, Richard and Kathy Martin founded the business as a successful estate agency in Yeovil in 1986, and then took the brave decision to relaunch as a comprehensive industry training service a few years later.
Quick to recognise the growing demand for a specialist lettings agency, Richard and Kathy started the franchise in 1995 and haven’t looked back since, the brand is recognized as the biggest franchise in its sector and has the most visited letting agent website in the UK with 250,000 unique visitors per month.
Martin & Co averages 20 new franchise recruits per annum, and will hit 200 franchisees by the summer of 2013.
Network developments include a comprehensive upgrade of the network’s IT system by technology specialists Jupix, providing franchisees with state-of-the-art systems.
Ian Wilson, managing director of Martin & Co, says: “Having established our brand strength, we’re continuing to innovate by using our well-respected retail shop footprint to do other things. We believe that we are perfectly placed to offer the full range of advice and services to property investors, who form a new asset class in the UK. We can’t wait to see the 2011 census results published summer of this year for confirmation of how the tenure map of the UK has changed in the ten years since the last census. New private renting hotspots have come into existence, and new opportunities to service this growing sector.”
Martin & Co’s long-term strategy is to become a one-stop property shop reflected in brand repositioning with the former “UK’s No.1 Letting Agent” becoming ‘lettings, sales, investment’.
The business is financially strong with no debt and has bought back three of its franchise offices since 1st January 2012 with a view to increasing its company owned holding to 60 franchises over the next 5-years. “We are investing directly in our own brand in the most tangible way possible, by buying back successful franchises. It gives our franchisee a guaranteed exit, and it will improve our profits as lettings businesses can operate on 40% gross margins. This is a good business to be in” said Wilson.
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