London-based estate agent Foxtons has defied a lacklustre property market to report a robust increase in revenue and profit, and boost its dividend, marking another sign of the successful turnaround steered by its new CEO.
The London-listed estate agent, known for its distinctive green and yellow Minis that have made it one of the capital’s most recognisable estate agents, witnessed an 11 per cent rise in revenue for the half year ending June 30, climbing from £70.9m to £78.5m year-on-year.
Adjusted operating profit surged from £6.8m to £8.5m a jump of 24 per cent while basic earnings per share increased 36 per cent from 1.4p to 1.9p.
This return to form enabled the estate agent to declare a 10 per cent hike to its interim dividend, which rose from 0.2p to 0.22p, as reported by City AM.
Foxtons’ Chief Executive, Guy Gittins, stated: “The strong momentum we started the year with has continued, with double-digit revenue and earnings growth and our position as London’s largest Lettings and Sales agency reinforced.
“Despite macro headwinds and the election interruption, we continued to outperform the market, delivering strong Sales revenue growth of 28 per cent and market share growth of 30 per cent. Growth was also delivered in Lettings, with a double-digit increase in new business volumes, further bolstered by the acquisitions we made in 2023.”
Surging ahead in the property game, an estate agent’s sales department witnessed a remarkable 28 per cent growth in earnings, as transaction levels started to rebound to normalcy after years of stagnation.
The estate agency’s stronghold, its lettings arm, contributed solidly with a 5 per cent rise in revenue amounting to £52.4m.
This real estate agent has experienced a striking recovery over the last year, having overcome a challenging period from 2021 to 2023, even as the broader property market remained fairly stable.
Looking back at the company’s history, the picture darkens. Upon its IPO in September 2013, the firm boasted a hefty market valuation of £753m.
Fast forward to the present and it stands at a significantly reduced £156.67m market capitalization.
However, since new leadership took charge in late 2023, there has been a noteworthy upswing; shares have surged by 80 per cent as efforts are made to reinstate the “high energy culture” that once catapulted this London-based estate agent to industry leadership.
Shares were also likely influenced by ongoing speculations of a possible sale, fuelled further by major investors who openly urged the company’s board to seek potential buyers.
