Lettings growth drives increase in revenue for London estate agent Foxtons
Leading London estate agent Foxtons Group rode the wave of increasing lettings in the first six months of the year, despite a near 20 per cent drop in overall sales revenue.
With the housing crisis continue to engulf much of the UK, Foxtons had a growth in revenue by three per cent. up from £63.4m last year, to £65.1m for 2022.
While its operating oprofit of £6.2m was up 13 per cent on the same period in 2021, the first six months of 2022 was not without its challenges.
It experienced a 17 per cent drop in sales revenue and eight per cent decline in intake from financial services, which has been attributed to both being pulled forward in 2021 ahead of the stamp duty deadline on 30 June last year.
The growth in cash in take was driven by 20 per cent increase in lettings revenue over the period, helping Foxtons to profit before tax of £4.3m, up almost 20 per cent.
It also integrated D&G lettings, Gordon & Co and Stones Residential, as its lettings portfolio grew to 27.600 tenancies.
“In the first six months of the year we have made significant progress against our plans to reset the business, Nigel Rich, chairman of Foxtons, said. He added it is bringing in Guy Gittins, the former CEO of Chestertons, as CEO in September this year, and reflected on “the integration of D&G lettings, as well as making a further two acquisitions in our lettings business to enhance earnings and market share.”
“We enter the second half with a tightening grip on costs, a focus on sales intensity, and an improved ability to generate revenue from prudent investment in negotiators and financial services advisers.
There remains much to do, but the heart of Foxtons is strong, and we are well placed to accelerate profit growth and realise the potential of the business.”