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Alexander Hall reports eight per cent drop in revenue in H1

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  • 28/07/2022
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Alexander Hall's revenue fell eight per cent to £4.8m, from £5.2m when compared to H1 2021.

Its parent company Foxtons attributed the £400,000 drop in revenue to “lower new purchase mortgage activity compared to the prior period which also benefited from stamp duty relief”.

However, Alexander Hall saw good levels of repeat remortgage business partly offsetting the reduction in new business. It also reported an 11 per cent increase in average revenue per transaction reflecting higher mortgage loan values.

Although the broker firm’s business volumes fell 16 per cent from 2,334 to 2,795, the average revenue per financial transaction was £2,056, up 11 per cent on 2021 when it was £1,859.

 

Foxtons’ performance

Foxtons reported a half-year adjusted profit of £6.2m, up 13 per cent.

It said revenue from continuing operations grew three per cent to £65.1m, from £63.4m in H1 2021, comprising of lettings at £39.4m and sales £20.8m.

The group said its profits were boosted by a 20 per cent revenue growth in lettings, although sales declined by 17 per cent.

It said the dip was a result of sales transactions pulled forward ahead of the 30 June 2021 stamp duty, which boosted comparable revenue during the first half of 2021.

Total revenue grew three per cent from £63.4m last year, to £65.1m during H1 2022. Foxton’s operating profit was £6.2m, up 13 per cent, while pre-tax profit was up 21 per cent at £4.3m.

The group’s lettings portfolio stands at around 27,500 tenancies, with 2,500 new tenancies added in the period through the acquisition of Gordon & Co and Stones Residential.

Nigel Rich, chairman of Foxtons, said: “In the first six months of the year we have made significant progress against our plans to reset the business and get back on the front foot.”

Rich, also welcomed the incoming chief executive Guy Gittins, the former CEO of Chestertons, who joins Foxtons in September this year.

Rich said: “In the period, we successfully completed the integration of D&G lettings, as well as making a further two acquisitions in our lettings business to enhance earnings and market share. We enter the second half with a tightening grip on costs, a focus on sales intensity, and an improved ability to generate revenue from prudent investment in negotiators and financial services advisers.

There remains much to do, but the heart of Foxtons is strong, and we are well placed to accelerate profit growth and realise the potential of the business.”

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