Both revenue and adjusted operating profit are up on the previous year
London estate agency Foxtons Group has announced a robust performance for the year ending December 2023, surpassing market expectations.
The company reported a revenue of approximately £147 million, up from £140.3 million in 2022, along with an adjusted operating profit of around £14 million, compared to £13.9 million of the previous year.
Key highlights for 2023 include improvements in data management, core processes, culture, and brand, which contributed to unlocking the value of the scalable Foxtons Operating Platform. These enhancements, coupled with investments in fee earners, led to significant market share growth across lettings, sales, and financial services.
Lettings, constituting approximately 70% of the group’s revenue, experienced growth of around 16%, surpassing £100 million in revenue for the first time in Foxtons’ history. This growth, the firm said, reflects its focus on non-cyclical and recurring revenues. Additionally, Foxtons completed two lettings acquisitions totalling £15.2 million, adding over 2,800 tenancies to its portfolio.
Sales also outperformed the market, achieving substantial market share growth compared to the previous year. Despite challenging market conditions, the company entered 2024 with an under-offer pipeline significantly ahead of the prior year.
In 2023, Foxtons emerged as the UK’s fastest-growing large lettings and sales agency brand, increasing its share of new lettings and sales instructions by 36% and 26%, respectively.
Looking ahead to 2024, Foxtons expects lettings to remain resilient, supported by strong recurring revenue streams. In sales, the company anticipates continued revenue growth, fuelled by a robust under-offer pipeline and sustained market share levels achieved in the latter half of 2023. Furthermore, the company predicts an increase in buyer demand as mortgage rates normalise, potentially driving further growth in the housing market.
“2023 has been a transformational year for Foxtons, following the implementation of a refreshed strategy and operational turnaround plan,” said Guy Gittins (pictured), chief executive at Foxtons. “We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectations.
“Our operational upgrades and investment in fee earners, training, data and brand, coupled with a return to driving innovation in the industry, are now consistently delivering material benefits to our competitiveness and market positioning, helping us to end 2023 as the UK’s fastest growing large lettings and sales agency brand.
“Our strategy to prioritise non-cyclical and recurring revenues has driven revenue and profit growth, despite a weaker sales market, and in contrast to prior years. This, combined with the operational progress and significant market share gains made to date, gives me confidence that our strategy is working, and we enter 2024 focused on delivering our strategic priorities and medium-term profit ambitions.”
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