TPFG’s trading update highlights a strong H1 outturn despite a challenging market backdrop. LFL revenue increased by 3%, including LFL MSF (franchise royalties) growth of 8%. Total revenue including the Belvoir and GPEA acquisitions grew by 104%. The full year outlook is supported by continued resilience in Lettings and 16% LFL growth (67% inc. acquisitions) in the sales agreed pipeline. Management therefore remains confident that trading remains at least in line with market expectations for FY24. Recent deals have enhanced TPFG’s scale and leave it well placed to continue its strong track record of earnings growth over the medium term (PBT CAGR of 23.5%). The beginning of interest rate reductions is also supportive. We continue to target a 15x P/E multiple to drive our 532p target price and remain at Buy.
