According to the estate agent’s 2014 full year results, sales transactions fell due to a market decline in the second half of the year.
However, Foxtons said the balance achieved across its sales and lettings segments provided financial stability to withstand fluctuations in the market. Sales revenue accounted for 48.5% of total revenue, up from 48.4% in 2013, with lettings making up 46.8% of all revenue, down from 47.7% compared to the previous year.
Group revenue for the year subsequently increased by 3.4% to £143.9m, with profit before tax up 8.2% to £42.1m.
Lettings volumes saw nominal growth of 1.7% over the year while mortgage broking volumes swelled by almost a quarter (23.4%).
Mortgage broking operating margins also increased to 11.8% compared to a rise of 5.5% in 2013, which Foxtons said was due to an overall improvement in the mortgage market combined with the increasing size in its branch networks.
CEO Nic Budden said the estate agent’s results were characterised by a ‘year of two halves’, with the second half subject to a downturn in property sales volumes, particularly in London where Foxtons bases its business.
“While we expect property sales activity to remain subdued at levels comparable to those seen in late 2012 and early 2013 until greater political and economic certainty returns, the long-term fundamentals of the London market remain sound and attractive.
“We continue to be confident that our organic expansion strategy, together with our strong lettings business, will enable us to grow revenue and profit even in a flat property sales market. Our new branches are performing well and we are on track to open another seven this year,” Budden added.
Founder and CEO of eMoov.co.uk Russell Quirk said: “We aren’t particularly surprised about the drop in revenue having predicted the market decline back in September through our eMoov Hotspots Index. What is surprising is that they can still make millions in profit despite the London downturn, this said the decrease in revenue does highlight their vulnerability to the ups and downs of the London market.”