Foxtons experiences strong growth as the UK property market rebounds, achieving its third consecutive quarter of increased revenue.
- The company’s revenue surged 8% to £47.4 million in the latest quarter, compared to the same period last year, highlighting its continued recovery.
- A 34% increase in transaction volumes has driven sales revenue up by more than a third, reaching £13.5 million, marking a peak since 2015.
- With the property sales revenue at £35.1 million for the year, Foxtons is outperforming the broader market, which grew 13% from 2023 lows.
- CEO Guy Gittins attributes this growth to strong lettings performance, expressing optimism for the future with a robust sales pipeline.
London’s prominent real estate company, Foxtons, is witnessing a significant recovery in the UK property market. The firm reported an 8% rise in revenue over the past three months, totalling £47.4 million for the quarter ending on 30 September. This marks the third consecutive quarter of growth, illustrating a robust performance amidst a recovering market.
The company’s earnings have been propelled by a 34% increase in property transactions, setting sales revenue at £13.5 million, the highest for any quarter since 2015. This surge is notably higher than the overall market growth, which saw a 13% recovery from the previous year’s historic lows.
Crucially, the revenue from property sales this year stands at £35.1 million, a substantial rise from just under £27 million in the past year. This significant growth underscores Foxtons’ strategic positioning and its ability to outperform broader market trends.
The CEO, Guy Gittins, highlighted the importance of the firm’s robust lettings performance, which provides a non-cyclical and dependable revenue stream. Gittins stated, “This growth was supported by a resilient performance in Lettings, which continues to provide a valuable stream of recurring and non-cyclical revenues.”
Looking ahead, Gittins expressed confidence in the company’s trajectory. He noted a sales agreed pipeline that is 23% higher than the previous year, indicating Foxtons’ readiness to unlock more value. 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, the company maintains a strong balance sheet and cash flow, supporting both organic investments and potential acquisitions in the lettings sector. Gittins concluded, “Our balance sheet and cash flow remain strong which will continue to support our growth and value creation initiatives, including both organic investments and synergistic lettings acquisitions.”
Foxtons’ strategic growth and market positioning have placed it on track for increased profitability and value creation in 2024.
