Foxtons says its business has rebounded strongly during the first quarter of the year as it takes a stake in Boomin alongside Channel 4 and the Mortgage Advice Bureau, part of a £25 million fund raising push by the portal.
The estate agency’s financial position was helped by an extra £1 million of income already earned from its acquisition of rival Douglas & Gordon just six weeks ago, helping boost turnover by 24% year-on-year for the quarter.
The company is also cash rich despite its recent acquisition activity and investment in Boomin, with £22.3 million still at the bank.
Several of Foxtons’ activities saw extraordinary surges in activity including a 60% jump in sales revenue to £11.4m and mortgage broking revenue up 20% to £2.3 million.
Its lettings operation fared less well. Revenue rose by just 6% to £14.8 million, not helped by the significant reductions in rent across the capital, although the estate agency says house moving activity within the PRS has been increasing as Covid has abated.
“I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time,” says Nic Budden, Group Chief Executive Officer (pictured).
“Our recent investment in Boomin demonstrates our commitment to remain at the forefront of technology.
“As we look forward, the strong trading momentum is expected to continue through the second quarter and together with tight cost control gives us confidence that operating profit for the first half will be significantly higher than last year.”
Anthony Codling of Twindig says: “It is certainly riding along the crest of the housing market wave at the moment and will be hoping that the wave does not crash hard on the beach when the stamp duty holiday comes to an end.”