LONDON (ShareCast) - (Sharecast News) - Estate agent Foxtons said on Tuesday that revenue and adjusted operating profit for the year to the end of December 2024 were set to be ahead of market expectations after "another year of significant earnings growth".
Foxtons said in an update that revenue grew 11% on the year to around £163m, while adjusted operating profit rose 33% to around £19m - both ahead of market expectations.

The outperformance reflects strong operational delivery, in particular significant share gains in the sales market, which delivered a 30% jump in revenues.

Lettings revenue, which accounts for around 65% of group revenue, ticked up 5%, and Foxtons said it retained its position as London's largest lettings agent and the UK's largest lettings estate agency brand.

Revenue in the financial services segment grew 6%, with fourth-quarter revenues up around 15% versus the same period a year earlier, "reflecting operational upgrades driving adviser productivity and improving sales market volumes".

Foxtons also said that 2025 first-quarter revenue growth in the sales segment is "well underpinned" with an under-offer pipeline "significantly ahead" of the prior year and at its highest opening position since the Brexit vote in 2016. This reflects strong under-offer activity in the fourth quarter.

Chief executive Guy Gittins said: "I'm delighted that we have delivered a second consecutive year of revenue and profit growth since I returned to the business in September 2022, as our turn-around strategy continues to deliver results, and we ended the year with earnings ahead of market expectations.

"Our renewed focus on training, culture and retention, supported by our best-in-class data and technology, has driven double digit market share gains in sales, and revenue growth in lettings. In addition, we have made two acquisitions in commuter towns as we expand into exciting new growth markets.

"We enter 2025 with optimism. We expect the Lettings business to remain resilient and, in sales, we start the year with the highest opening under-offer pipeline since the Brexit vote in 2016. This dynamic, coupled with our results driven-culture and industry-leading Foxtons Operating platform, leaves us well placed to continue to deliver against our strategic priorities in 2025."

At 0930 GMT, the shares were up 6% at 69.94p.

Russ Mould, investment director at AJ Bell, said: "London-based estate and lettings agent Foxtons and its brightly lit outlets stacked with drinks fridges and minimalist furniture were synonymous with the boom and bust in the London property market.

"The biggest pipeline of properties under offer since before the Brexit vote is a significant milestone. Whether the momentum can be sustained is open to question, given it is driven by first-time buyers looking to get in before an increase in stamp duty rates.

"In the here and now, the trading update demonstrates the company's ability to take market share. It is also notable Foxtons has been feeling confident enough to make acquisitions.

"Chief executive Guy Gittins' background, starting his career at Foxtons in the early noughties, means he has a good understanding of the business. Having helped execute a turnaround at rival agent Chestertons, Gittins seems to be doing a good job with the recovery plan at his current charge."

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