Foxtons announced a storming start to this year with first-quarter results – but the City seemed strangely unimpressed.

Shares in the company hit a peak of almost £4 two months ago but have now fallen by almost £1.

Yesterday, Foxtons – which floated last autumn – announced a 44% jump in underlying earnings to £10.9m on group turnover of £34.1m – up 19.2% on the same period last year.

Commission on property sales jumped 41% to £17.7m, compared with the same period last year.

By comparison, lettings was flat.

Garry Watts, Foxtons’ chairman, said it had been an “excellent start” to the year and that pipeline business was well ahead of last year, giving the firm confidence in results for the half-year to June 30.

Shares at first went up 6p to £3.26p, but ended the day lower at £3.17.

City analyst Chris Millington of Numis said the problem was low inventory for sale.

He said: “The one constraining factor to growth is the low levels of available stock, but with Foxtons’ extensive marketing capabilities and active approach to listings, we suspect the group will be outperforming the wider London market.”

Meanwhile, Winkworth also reported to the City yesterday with its full-year results for 2013.

It said a 10% rise in average selling prices in London to £474,000 last year, helped it post record pre-tax profits of £1.69m.

The firm, which gets 80% of its revenue from London, expects central London house prices to rise another 5% this year, with prices in outer London to go up 10%.