Foxtons outperforms market as FY profit, revenue ahead of expectations

(Sharecast News) - Estate agent Foxtons said on Tuesday that revenue and adjusted operating profit for the year to the end of December 2024 were set to be ahead of market expectations after "another year of significant earnings growth". Foxtons said in an update that revenue grew 11% on the year to around £163m, while adjusted operating profit rose 33% to around £19m - both ahead of market expectations.

The outperformance reflects strong operational delivery, in particular significant share gains in the sales market, which delivered a 30% jump in revenues.

Lettings revenue, which accounts for around 65% of group revenue, ticked up 5%, and Foxtons said it retained its position as London's largest lettings agent and the UK's largest lettings estate agency brand.

Revenue in the financial services segment grew 6%, with fourth-quarter revenues up around 15% versus the same period a year earlier, "reflecting operational upgrades driving adviser productivity and improving sales market volumes".

Foxtons also said that 2025 first-quarter revenue growth in the sales segment is "well underpinned" with an under-offer pipeline "significantly ahead" of the prior year and at its highest opening position since the Brexit vote in 2016. This reflects strong under-offer activity in the fourth quarter.

Chief executive Guy Gittins said: "I'm delighted that we have delivered a second consecutive year of revenue and profit growth since I returned to the business in September 2022, as our turn-around strategy continues to deliver results, and we ended the year with earnings ahead of market expectations.

"Our renewed focus on training, culture and retention, supported by our best-in-class data and technology, has driven double digit market share gains in sales, and revenue growth in lettings. In addition, we have made two acquisitions in commuter towns as we expand into exciting new growth markets.

"We enter 2025 with optimism. We expect the Lettings business to remain resilient and, in sales, we start the year with the highest opening under-offer pipeline since the Brexit vote in 2016. This dynamic, coupled with our results driven-culture and industry-leading Foxtons Operating platform, leaves us well placed to continue to deliver against our strategic priorities in 2025."

At 0930 GMT, the shares were up 6% at 69.94p.