Foxtons H1 profits grow as sales activity rebounds

(Sharecast News) - Estate agency Foxtons said on Wednesday that profits had grown in H1, underpinned by recurring lettings income and a rebound in sales activity. Foxtons said interim revenues had climbed 10% to £86.1m, while adjusted operating profits jumped 31% to £12.3m, and pre-tax profits rose 35% to £10.2m.

Lettings remained the backbone of the business, up 4% to £54.6m, bolstered by acquisitions and growth in property management services, while sales surged 25% to £26.9m, benefiting from elevated transaction volumes ahead of the stamp duty deadline and a strengthened market position. Financial services revenue held steady at £4.5m.

Foxtons also said its revamped operating platform and bolt-on acquisitions had driven margin expansion, with adjusted operating margins up 230 basis points to 14.3%, and noted that it had swung to a £3.6m net free cash inflow, supporting a 9% hike in its interim dividend to 0.24p per share.

Looking ahead, Foxtons reaffirmed its FY profit guidance, citing stable lettings conditions and a resilient earnings base.

Chief executive Guy Gittins said: "It's been a strong start to the year, with revenue up 10% and adjusted operating profit growing 31%. The lettings business has continued to perform well, providing steady, recurring revenues which underpin our growth, while the sales business benefitted from a rebuilt market share position and increased market activity ahead of the stamp duty deadline.

"We expect a more challenging second half for the sales market compared to the first, and while we welcome the Government's new mortgage guarantee scheme as a constructive step, the property market also requires a comprehensive review of stamp duty to help stimulate growth and improve access to home ownership across all price points."

As of 0820 BST, Foxtons shares were down 2.74% at 58.65p.

Reporting by Iain Gilbert at Sharecast.com