Foxtons says it’s delivered first phase of growth plan

Foxtons has told shareholders that it has enjoyed "a good year of progress with revenues, profits and cash flow significantly ahead of 2019 and 2020" and has delivered on the first phase of a growth plan.

In a trading statement this morning, chief executive Nic Budden says: “We extended our leadership position in the London sales and lettings markets, developed new revenue channels and enhanced cross-sell capabilities by leveraging our investments in marketing and technology.

"We are delighted with the D&G acquisition which has had a materially positive impact on profits. With increased market share, and the successful integration of acquisitions driving strong growth in revenue, profits and cash flow, we re-instated the dividend for the first time since 2017 and bought back £5.7m of shares.

"We have now completed the strategic review of our mortgage broking business, Alexander Hall, and believe it is in the Group’s interests to retain the business. Alexander Hall intends to increase its financial adviser base, to fully realise the financial services cross-selling opportunity and grow profits significantly.

"The sales market remains buoyant, with our current under-offer sales commission pipeline marginally ahead of 2021, and we have a good pipeline of potential lettings portfolio acquisitions. We have a clear plan for growth and are highly focused on delivery.”

The statement covers the year ended 31 December 2021 and shows that revenues across all business segments were well ahead of 2020 and 2019 "reflecting organic market share growth, the contribution from acquired lettings businesses and improved market conditions."

Revenue for the full year was £126.5m, up 35 per cent on 2020, with much of that growth down to the contribution from new acquisition Douglas & Gordon. And Foxtons says it has an adjusted operating profit of £8.9m was recorded, up from £1.9m in 2020 after £1.5m voluntary repayment of business rates.

There was a 36 per cent increase in branch productivity and a 26 per cent rise in employee productivity over 2020.