Foxtons defies doomsters with upbeat results

Foxtons has defied gloomy City pundits by reporting an 8.2 per cent rise in pre-tax profits to £42.1m.

The firm's chief executive Nic Budden say there was a "very strong property sales market" in the first six months followed by a second-half downturn.

Last month the agency predicted that its sales would be unlikely to rise again until after the May election - Budden has confirmed this, saying: "Whilst we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long term fundamentals of the London market remain sound and attractive."

Foxtons has 52 branches, almost all in central London, and is scheduled to open five new branches over the next eight weeks in Barnes, West Hampstead, Walthamstow, Bromley and Ruislip.

In detail, Foxtons group revenue in 2014 was up 3.4 per cent to £143.9m, and pre-tax profits up 8.2 per cent to £42.1m. But its pre-tax profit dropped slightly from £49.6m to £46.2m.

The firm, which floated on the stock market 20 months ago, says sales revenue accounted for 48.5 per cent of income, while lettings took 46.8 per cent and mortgage broking 4.4 per cent.

Sales volumes in 2014 were down by 3.7 per cent and lettings up by 1.7 per cent. This means Foxtons enjoyed 5,323 sales last year, compared with 5,525 the year before. But the firm made more from commission per sale, earning an average of £13,119, up from £12,202 in 2013.