The Foxtons Group interim results showed this was driven by an 8% increase in volumes across the Alexander Hall business.
The group put this down to improved productivity within the Alexander Hall division despite “weakness” in the “turbulent” mortgage market.
The average revenue generated per transaction was flat, as the 2% increase in the average loan size was partially offset by an “adverse product mix” and the growth of product transfers.
Foxtons said in the first half of the year, 44% of Alexander Hall’s revenue was generated from non-cyclical and recurring refinance activity. This amounted to £2m.
The remaining 56% share of its revenue, equating to £2.5m, was from purchase activity and other revenue sources.
Looking forward, the group said it expected mortgage refinancing to “remain resilient” and new mortgage volumes to track the performance of the wider market.
The contribution margin of the financial services division to Foxtons’ revenue increased from 37.2% to 43.1%.
Revenue for the group in H1 was 11% higher annually at £78.5m.
Foxtons Group’s profit before tax increased by 24% to £7.5m, a rise from a pre-tax profit of £6.1m during the first half of last year. Its profit after tax increased by 43% to £5.9m, higher than the previous year’s £4.1m.
Its lettings division’s revenue rose 5% to £52.4m and sales revenue saw a 28% jump to £21.6m.
Foxtons ‘making great progress’
Guy Gittins, chief executive of Foxtons Group, said: “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.”
He added: “When I joined the business in 2022, I knew there was a significant amount of work to unlock the vast amount of value within the business. Two years on, and we are making great progress thanks to the collective effort of the Foxtons team. The work we did to rebuild the business’ foundations continues to deliver progress; we are growing the non-cyclical and recurring lettings business, our sales under-offer pipeline is at a record level since the Brexit vote in 2016, and we are on track to deliver against our medium-term target of £25m to £30m adjusted operating profit.
“Momentum can be felt across every aspect of the business and I am very excited about the second half and beyond as we work hard to deliver excellent results for the property owners of London and our shareholders.”
