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Foxtons’ broker Alexander Hall records 32% boost to revenue

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  • 06/04/2016
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Foxtons’ broker Alexander Hall records 32% boost to revenue
Alexander Hall, the mortgage broker owned by Foxtons, enjoyed revenue growth of 32% last year, helping to boost the lettings and estate agent’s overall profits.

The broker’s revenue reached £8.3m at the end of 2015, up from £6.3m on a year earlier, the group’s annual results show. This growth far outpaced that seen in both Foxton’s lettings and sales divisions, where revenue grew by 2.3% and 3.4% respectively.

Revenue in Foxton’s lettings business totalled £68.9m last year, with its sales operations remaining the most lucrative with £72.2m of revenue. Total revenue across the group increased by 4.1%, taking it to £149.8m.

Despite its growth in revenue, profit before tax at the group fell in 2015 from £42.1m to £41m due to a combination of declining profits in its central London operations and increased costs as a result of its ongoing branch expansion into outer London.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), remained flat at £46m compared to £46.2m in 2014 and £49.6m in 2013.

Foxtons was knocked out of the FTSE 250 index in December last year after listing in September 2013.

Alexander Hall’s revenue was driven by a boost in adviser recruitment, while average revenue per deal increased to 9.4% due to increasing average loan size and more favourable lender proc fees. Mortgage broking now makes up 5.5% of Foxtons’ revenue stream, rising from 4.4% in 2014.

Foxtons said the broker has potential to grow further as the group expands and property sales transactions increase.

Despite falling profits, Foxtons’ chief executive, Nick Budden, was awarded with a 19% rise in his basic salary for 2016, from £461,250 to £550,000. Foxtons said Budden’s salary increase was reflective of successful expansion of the business and his increased experience since joining the group in mid-2014.

 

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