Foxtons has recorded a 31% annual increase in the value of its under offer pipeline during the first couple of months of 2024 as the market recovers from a slower 2023, the agent said.
A trading outlook in the London agent’s annual results yesterday suggested lower mortgage rates have boosted its sales activity so far this year
The growth in the value of the under-offer pipeline is expected to deliver "good year-on-year revenue growth" in the first half of the year, with further growth expected in the second half if mortgage rates continue to stabilise and pent-up demand is released, Foxtons said.
It comes as Foxtons reported a 5% rise in revenue for 2023 to £147.1m.
Pre-tax profits were down 34% to £7.9m after charging £4.5m of adjusted items primarily relating to the integration of Ludlow Thompson and branch network consolidation, while adjusted profit before tax was up 3% at £12.4m..
Lettings revenue was up 16% to £101.2m, representing 70% of the total results, while sales was down 14% to £37.2m “as challenging market conditions were partially mitigated by market share driven outperformance of the wider London market.”
Foxtons highlighted that the wider sales market was down over 24% on value.
The agent said it reclaimed the number one estate agency position in London and is now the largest lettings estate agency brand in the UK and was the fastest growing large UK estate agency brand in 2023, based on TwentyCi instructions data.
Guy Gittins, chief executive of Foxtons, said the brand is on track towards its medium-term target of delivering £25m to £30m of adjusted operating profit “through organic and acquisitive growth and supported by improving market conditions.”
Gittins added: “2023 was a year in which Foxtons has been fundamentally transformed. We have achieved a lot in a short space of time by making improvements across the business and Foxtons is now in much better shape than the company I inherited 18 months ago.
"We have restored Foxtons' competitive advantages by investing in core capabilities, growing fee earners and reinvigorating our culture and this has been achieved ahead of schedule. As a result, Foxtons was the UK's fastest growing large lettings and sales agency brand in the UK in 2023 and reclaimed its position as London's leading estate agency.
"Most importantly, we have rebuilt and strengthened the Foxtons operating platform. The platform is a unique, industry-leading and proprietary asset which will underpin our future growth and, due to its scalability, will provide Foxtons with the capability to expand and consolidate across our industry.”
Analysts have maintained a buy rating for the Foxtons stock.
Greg Poulton, analyst for Singer, said: “Foxtons has reclaimed its position as London’s leading estate agency after a year of outperformance where it was the UK’s fastest growing large lettings and sales agency brand.
“Foxtons entered the full-year 2024 in a strong position and management confirms it is on track to achieve its medium term operating profit target of £25m-£30m. Our forecasts show achievement of this in 2026, underpinning our buy recommendation and upgraded 88p target price.”
https://www.investegate.co.uk/announcement/rns/foxtons-group--foxt/final-results/8070187
.jpg){kind=avatar}
Join the conversation
Jump to latest comment and add your reply
Dexters are bigger than you now. Soz. (Not saying that's a good thing. KFH was a better firm than both Foxtons and Dexters, but now it's been swallowed up by Dexters, it'll lose it's culture. Sadly.)
Please login to comment