Foxtons has just released their Q1 trading update showing strong revenue growth underpinned by greater sales market share and and lettings expansion from acquisitions.

Highlights include:

+ First quarter revenue is up 9% to £35.7m (Q1 2023: £32.9m) with growth delivered across all business segments. The Group is trading in line with management’s expectations

+ Lettings revenue was up 5% in the quarter to £24.0m (Q1 2023: £22.8m) reflecting incremental revenues from the two 2023 portfolio acquisitions and broadly flat revenues on a like-for-like basis

+ Sales revenue was up 17% in the quarter to £9.5m (Q1 2023: £8.1m) with growth underpinned by a significant increase in Foxtons’ market share of transactions

+ Foxtons’ sales agreed in the quarter were 31% higher by volume compared to Q1 2023

+ Financial Services revenue was up 16% in the quarter to £2.3m (Q1 2023: £2.0m)

Foxtons’ first quarter revenue is up 9% to £35.7m (Q1 2023: £32.9m) with growth delivered across all business segments. The Group is trading in line with management’s expectations.

Group revenue: 3 months ended 31 March

Lettings

Lettings revenue was up 5% in the quarter to £24.0m (Q1 2023: £22.8m) reflecting incremental revenues from the two 2023 portfolio acquisitions and broadly flat revenues on a like-for-like basis. As expected, compared to 2023, the supply and demand dynamic has normalised and rental prices have stabilised accordingly.

Sales

Sales revenue was up 17% in the quarter to £9.5m (Q1 2023: £8.1m) with growth underpinned by a significant increase in Foxtons’ market share of transactions. Market share growth has been enabled by the group’s operational turnaround, with sales growing its market share of transactions in four out of the last five quarters.

Foxtons’ sales agreed in the quarter were 31% higher by volume compared to Q1 2023. At the end of March 2024, the value of the under-offer pipeline was 34% higher than 2023 and 12% higher than 2022, the highest value since the 2016 Brexit vote. This under-offer pipeline is expected to support further revenue growth in Q2, supported by an improving sales market backdrop as mortgage availability and rates have both stabilised, alongside good levels of available stock.

Financial Services

Financial Services revenue was up 16% in the quarter to £2.3m (Q1 2023: £2.0m). Growth was driven by increased mortgage volumes reflecting operational upgrades to improve both adviser productivity and levels of cross-selling across the Group.

Guy Gittins, chief executive officer, said: “This has been a strong start to the year with our revenue growth demonstrating the real momentum we have built across the business. Last year we regained our number 1 position in London and delivered significant growth in our market share of property instructions across both Lettings and Sales. The business is now focussed on converting these listings to transactions as we deliver results for our clients.

“Sales revenue was up 17%, reflecting improved market conditions and Foxtons’ continued growth in market share as the operational improvements we made last year took effect. We entered the second quarter with the highest value under-offer Sales pipeline since the 2016 Brexit vote, giving us optimism for the rest of the year.

“We have made great strides in the past two years, with the business’ foundations rebuilt and the Foxtons Operating Platform significantly strengthened. We are well placed to continue to unlock value within our business, drive growth, and ultimately deliver against our medium-term adjusted operating profit target.”

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