Foxtons Group said the improved performance was down to increased mortgage volumes and operational upgrades, which supported adviser productivity. It also attributed the higher revenue to cross-selling within the group.
Revenue up across all divisions
Foxtons’ lettings business reported a 5% increase in revenue to £22.8m, while its sales business saw revenue rise by 17% to £9.5m.
The sales division saw the volume of sales agreed rise by 31% in Q1, while the value of the under-offer pipeline was 34% higher than the previous year.
Foxtons said this was the highest value of its under-offer pipeline since 2016, with this expected to continue driving revenue growth backed by an improved sales market due to greater mortgage availability and stabilised rates.
Overall, Foxtons Group’s revenue increased by 9% annually in Q1 to £35.7m.
A strong start to the year for Foxtons Group
Guy Gittins, chief executive of Foxtons Group, said: “This has been a strong start to the year, with our revenue growth demonstrating the real momentum we have built across the business. Last year, we regained our number-one position in London and delivered significant growth in our market share of property instructions across both lettings and sales. The business is now focused on converting these listings to transactions as we deliver results for our clients.
“Sales revenue was up 17%, reflecting improved market conditions and Foxtons’ continued growth in market share as the operational improvements we made last year took effect. We entered the second quarter with the highest value under-offer sales pipeline since the 2016 Brexit vote, giving us optimism for the rest of the year.
“We have made great strides in the past two years, with the business’ foundations rebuilt and the Foxtons Operating Platform significantly strengthened. We are well-placed to continue to unlock value within our business, drive growth, and ultimately deliver against our medium-term adjusted operating profit target.”
