Foxtons Group Surpasses Market Expectations for 2024

(Reuters) – Britain’s Foxtons Group (LON:FOXT) announced on Tuesday that its 2024 revenue and operating profit outperformed market expectations, bolstered by growth in its lettings business.

Importance of Demand

A surge in demand for rental properties in London has significantly increased rent prices, positively impacting the lettings sector at a time when home sales are sluggish due to affordability issues and broader economic concerns. Although worries about the slowing pace of UK interest rate cuts have affected homebuyer confidence, the unexpected drop in December inflation has renewed optimism for more favorable economic indicators.

Financial Highlights

• Revenue: Grew 11% to approximately £163 million ($202.8 million) for the year ending December 31.
• Adjusted Operating Profit: Increased by 33% to £19 million.

Analysts had forecasted revenue of £160.1 million and a profit of about £17.9 million based on company estimates. Lettings revenue, which comprises 65% of total group turnover, rose by around 5%.

CEO Statement

Foxtons CEO Guy Gittins remarked, “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.”

($1 = 0.8039 pounds)