Foxtons has decided to keep its mortgage business Alexander Hall after confirming a review of the business in July.

The decision coincides with Foxtons’ latest upbeat final results for 2021 published today, which show its mortgage business increasing revenues by 11% compared to 2019.

“We have now completed the strategic review of Alexander Hall and believe it is in the Group’s interests to retain the business,” says CEO Nic Budden.

“Alexander Hall intends to increase its financial adviser base, to fully realise the financial services cross-selling opportunity and grow profits significantly.”

Foxtons’ revenues increased to £126.5 million, up by 35% compared to 2020 and 18% compared to 2019.

Business rates

This generated an operating profit of £8.9 million, up from £1.9 million the year before. This would have been higher, but the company chose to voluntarily pay £1.5 million of business rates. The government operated a business rates discount scheme throughout 2020 and 2021.

There will be relief at its West London HQ that plans to get the company back to financial and market growth are working after several years of shrinking revenues and branches being closed.

“We successfully delivered the first phase of our growth plan, making strong progress against our core strategic objectives and are confident of delivering further growth this year and into the future,” says Budden (pictured).

“We extended our leadership position in the London sales and lettings markets, developed new revenue channels and enhanced cross-sell capabilities by leveraging our investments in marketing and technology. We are delighted with the D&G acquisition which has had a materially positive impact on profits.”

Other highlights of the results include a 36% increase in branch productivity and a 26% increase in employee productivity compared to 2020, as well as a simplified management structure and a new bonus scheme.