Foxtons reveals big jump in sales revenue after business ‘re-engineered’
The estate agency has released an extraordinary set of results a high point of which is its 28% increase in sales revenue pinned on an increase in Foxtons' market share and better lead generation.
Foxtons has revealed revenue up 11% to £78.5m including an extraordinary performance from its sales operation, where revenue grew by 28%.
Its two other main arms also did well in its latest trading update for the first half of the year, with lettings revenue up 5% to £52.4 million and financial services up 7% to £4.5 million.
The company is now very lucrative, with profit before tax up 24% to £7.5 million and it’s also in a bullish mood, claiming to be London’s ‘No.1’ estate agent and largest lettings brand in the UK.
The estate agency also says the acquisition of Ludlow Thompson is going well, one result being that post-purchase landlord retention rates at the former independent firm have been better than at companies acquired prior to 2022, when CEO Guy Gittins took over.
Foxtons pins its extraordinary sales revenue growth on an increased market share, which has risen from 3.9% to 5.1% despite a backdrop of flat year-on-year London exchange volumes, and more aggressive lead generation including a new AI-driven branch-wide scheme.
Re-engineering
Gittins has described the changes he’s overseen since arriving as a “considerable re-engineering of the business over the last 18 months”.
“When I joined the business in 2022, I knew there was a significant amount of work to unlock the vast amount of value within the business,” he says.
“Two years on, and we are making great progress thanks to the collective effort of the Foxtons team.
“The work we did to rebuild the business’ foundations continues to deliver progress; we are growing the non-cyclical and recurring lettings business, our sales under-offer pipeline is at a record level since the Brexit vote in 2016, and we are on track to deliver against our medium-term target of £25m to £30m adjusted operating profit.
“Momentum can be felt across every aspect of the business and I am very excited about the second half and beyond as we work hard to deliver excellent results for the property owners of London and our shareholders.
“Despite macro headwinds and the election interruption, we continued to outperform the market.”
Is it a 24% or a 28% increase??
thanks for heads up – it’s a 24% increase in profits and a 28% rise in sales revenues.