TPFG’s merger with Belvoir creates the second largest estate and letting agency network, with more than 930 franchise locations, c.152k managed properties, c.28k property sales p.a. and a leading Financial Services business. The merger doubles earnings - we forecast adj. PBT of £20.6m/£26.7m in FY24/FY25 vs. £10.7m in FY23, including £2.5m of cost synergies in FY25. We highlight the attractions of TPFG’s recurring revenues (47%), high margin (34%+ OM), strong earnings growth (25% p.a. LT avg. PBT growth) and cash generation (6%+ FCF yield) in this note. We believe TPFG is well placed for continued growth, with the merger enhancing its scale. We target an FY25 P/E rating of 15x to drive our 471p TP, which underpins our Buy rec.
