Foxtons hails strong start to year as sales market improves
18th Apr 2024 09:32
(Sharecast News) - Foxtons hailed a strong start to the year on Thursday as the sales market improved and the London estate agent grew its market share.
The company said first-quarter revenue rose 9% to £35.7m, with growth across all segments and trading in line with management's expectations.
Revenue from the lettings business was up 5% to £24m, reflecting incremental revenues from the two 2023 portfolio acquisitions and broadly flat revenues on a like-for-like basis. Foxtons said that as expected, the supply and demand dynamic has normalised and rental prices have stabilised versus 2023.
In sales, revenue rose 17% to £9.5m, with growth underpinned by a "significant" increase in Foxtons' market share of transactions.
Sales agreed in the quarter were 31% higher by volume compared to the same period a year earlier.
At the end of March, the value of the under-offer pipeline was 34% higher than a year earlier and 12% higher than 2022 - the highest value since the 2016 Brexit vote.
Foxtons said the under-offer pipeline is expected to support further revenue growth in the second quarter, along with an improving sales market backdrop as mortgage availability and rates have stabilised.
Chief executive Guy Gittins said: "This has been a strong start to the year with our revenue growth demonstrating the real momentum we have built across the business. Last year we regained our number 1 position in London and delivered significant growth in our market share of property instructions across both lettings and sales. The business is now focussed on converting these listings to transactions as we deliver results for our clients.
"We have made great strides in the past two years, with the business' foundations rebuilt and the Foxtons operating platform significantly strengthened. We are well placed to continue to unlock value within our business, drive growth, and ultimately deliver against our medium-term adjusted operating profit target."