Foxtons has achieved its third consecutive quarter of revenue growth, marking a significant milestone in the property market.
- The company’s quarterly revenue increased by 8%, reaching a total of £47.4 million, compared to the same period last year.
- Sales revenue experienced considerable growth, rising by over a third to £13.5 million, the highest since 2015.
- Despite stability in lettings income, the volume of property transactions surged by 34%, surpassing the broader market growth of 13%.
- CEO Guy Gittins attributes this success to strong lettings performance, providing a steady revenue stream and strategic optimism for the future.
Foxtons, one of London’s leading real estate firms, has reported yet another successful quarter, delivering its third consecutive quarter of revenue growth. The firm recorded an 8% increase in quarterly revenue, amounting to £47.4 million, a notable rise from the same period last year.
The revenue from sales jumped significantly, climbing by over a third to £13.5 million, marking the highest figure for a quarter since 2015. This upward trend was driven by an increased number of property transactions, with a remarkable 34% rise compared to the previous year. This performance stands out against the larger market, which experienced a relatively modest 13% growth, recovering from the historic lows observed in 2023.
Despite the overall growth, lettings income remained stable, continuing to be a key component of the company’s revenue strategy. CEO Guy Gittins highlighted the importance of lettings, describing it as a resilient and non-cyclical revenue stream. He confidently stated, “This growth was supported by a resilient performance in Lettings, which continues to provide a valuable stream of recurring and non-cyclical revenues.”
Gittins further expressed his optimism as the company moves into the final quarter, emphasising the increased sales agreed pipeline, which is currently 23% higher than this time last year. He stated, “We enter the final quarter with optimism: our sales agreed pipeline is 23 per cent higher than this time last year, sales volumes in our markets continue to recover, and we are well placed to continue to unlock the value within our business.”
Additionally, Gittins reaffirmed the company’s solid financial positioning, citing a strong balance sheet and cash flow which are expected to support both organic growth and strategic acquisitions. “We are on-track to deliver increased profitability in 2024, in line with consensus, and we continue to make progress towards our medium-term target of £25m to £30m adjusted operating profit,” Gittins added.
Foxtons remains poised for continued growth, with strategic plans to maintain and augment its strong market position.
