London-based real estate firm Foxtons has reported impressive financial growth, continuing its positive trend into the third quarter.
- Revenues rose by 8%, reaching £47.4 million – a testament to the buoyant property market.
- Sales revenue soared by more than a third, with transactions exceeding the broader market’s recovery rate.
- CEO Guy Gittins attributes the growth to strong lettings and a resilient market.
- Foxtons remains optimistic for future growth, supported by their solid financial foundation.
Foxtons, a prominent real estate firm in London, has demonstrated a remarkable financial performance by securing its third consecutive quarter of growth. With revenues climbing by 8% to £47.4 million during the quarter ending 30 September, the company has showcased its capability to capitalise on the recovering property market. This financial ascent also includes a nine-month revenue total of £125.9 million, marking a 10% rise from the same period in the previous year.
A key contributor to this financial success is Foxtons’ sales revenue, which surged by over one-third to £13.5 million. This represents the highest quarterly sales revenue the company has seen since 2015. The increase is attributed to a higher volume of property transactions, providing an essential boost amidst a still-recovering market landscape. Notably, Foxtons outperformed the general market, which saw a growth rate of 13% compared to historically low numbers in 2023.
Transaction volumes at Foxtons have increased by an impressive 34% from the previous year, a significant achievement when compared to the broader market’s recovery. The revenue accrued from property sales so far this year has reached £35.1 million, a substantial increase from just under £27 million in the prior year. This uptick underscores the firm’s strategic positioning and its ability to leverage market opportunities effectively.
According to Guy Gittins, the CEO of Foxtons, the robust lettings performance has played a pivotal role in sustaining recurring and non-cyclical revenue streams. He expressed optimism about the company’s prospects, mentioning a 23% increase in the sales agreed pipeline compared to the same time last year. Gittins stated that the company’s strong balance sheet and cash flow are instrumental in supporting ongoing growth and value creation initiatives, including both organic investments and strategic lettings acquisitions.
Gittins further affirmed Foxtons’ trajectory towards achieving increased profitability in 2024, aligning with market consensus. He also reiterated the firm’s medium-term goal of achieving £25 million to £30 million in adjusted operating profit, highlighting the company’s strategic progress and financial resilience.
Foxtons continues to demonstrate robust growth, leveraging a solid market strategy to achieve significant revenue increases and maintaining an optimistic outlook for future profitability.
