Foxtons Group, the lettings-focused estate agent, has exceeded market expectations with its revenue and adjusted operating profit, demonstrating the success of its operational turnaround.
Impressive Financial Performance
In 2023, Foxtons Group achieved a revenue of approximately £147 million ($187.1 million), surpassing the company’s own market forecast of £144.5 million. This represents a significant increase from the previous year’s revenue of GBP140.3 million. Similarly, the company’s adjusted operating profit rose to around GBP14 million, outperforming market views which estimated it to be around GBP11.8 million.
Lettings Unit Leading the Way
The growth in revenue was primarily driven by Foxtons’ Lettings unit, which accounts for approximately 70% of the group’s total revenue. This division experienced a remarkable growth rate of around 16%. This growth more than compensated for anticipated reductions in Sales and Financial Services revenue due to a challenging sales market.
Overcoming Market Challenges
Despite facing challenging market conditions, Foxtons successfully gained significant market share in Sales. The company remains optimistic about the resilience of the Lettings unit in 2024 and has already started the new year with a strong under-offer pipeline in Sales.
Focused on Long-Term Growth
Looking ahead to 2024, Foxtons Group is committed to delivering operational enhancements that will drive further growth and reduce its reliance on sales market cycles. The company firmly believes it is well-positioned to achieve its medium-term growth ambitions of £25 million-£30 million in adjusted operating profit.
Foxtons Group’s impressive financial performance demonstrates the effectiveness of its operational turnaround strategy. As the company continues to prioritize growth, it remains dedicated to providing exceptional services in the real estate market.