Foxtons Group plc announced a strong performance for the third quarter of 2024, marking sustained business growth.
- The company reported an 8% increase in revenue, continuing its growth trajectory for three consecutive quarters.
- Sales revenue saw an impressive 36% rise, supported by increased market share and a recovering market.
- Lettings revenue remained solid, contributing to stable recurring income streams.
- Foxtons maintains a strong financial position, gearing up for further growth and profitability.
Foxtons Group plc reported a robust financial performance in the third quarter of 2024, underscoring continued growth across its business operations. The company achieved an 8% increase in Q3 revenue, totalling £47.4 million, compared to the previous year’s £43.9 million. This marks the third consecutive quarter of revenue growth for the agency. Year-to-date figures as of 30th September 2024 reveal a 10% revenue increase, reaching £125.9 million, up from £114.8 million during the same period last year.
Sales revenue experienced a notable surge of 36%, rising to £13.5 million from £9.9 million in Q3 2023. This growth was propelled by gains in market share and early signs of market recovery, marking the highest Q3 sales revenue since 2015. The increase in transaction volumes, up by 34%, significantly outpaced the broader market’s 13% rise, hinting at a distinct sales velocity.
Lettings revenue demonstrated resilience, maintaining a steady £31.6 million, consistent with a strong performance in Q3 2023. This segment continues to provide a valuable stream of non-cyclical recurring revenues, underpinning the steady financial foundation of the company.
Despite a relatively flat performance in financial services with Q3 revenue at £2.3 million, the overall year-to-date services revenue saw a 3% boost, totalling £6.8 million. The impact on average commission levels due to increased activity in lower-value product transfers was offset by productivity improvements in advisory services.
Chief Executive Officer Guy Gittins highlighted, “We have delivered our third consecutive quarter of growth, with Q3 revenues up 8% to £47.4 million, and year-to-date revenue up 10% to £125.9 million. This continued momentum strengthens our position as London’s largest lettings and sales agency brand.”
Foxtons enters the final quarter with optimism, driven by a 23% higher sales agreed pipeline compared to the previous year. The company remains focused on growth and value creation initiatives, supported by a robust balance sheet and cash flow. As Gittins confirmed, “We are on track to deliver increased profitability in 2024, in line with consensus, and we continue to make progress towards our medium-term target of £25 million to £30 million adjusted operating profit.”
Foxtons is well-positioned to leverage its sustained revenue growth into increased profitability through strategic initiatives.
