Foxtons Group has posted a strong first-half performance, with group revenue up 10% to £86.1m and adjusted operating profit rising 31% to £12.3m.
Adjusted EBITDA climbed 32% to £13.8m, underpinned by a robust lettings business and a stronger performance in sales during the early part of the year.
Guy Gittins, chief executive officer, 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.”
Foxtons also confirmed its ambition to deliver £50m of adjusted operating profit in the medium term, following a recent Capital Markets Event.
Gittins added: “Our strategy is clear and scalable, supported by a market-leading Operating Platform and a commitment to consistently deliver results for our customers.”
Commenting on market conditions, Gittins said: “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.”
Chris Millington at Numis described the results as “marginally ahead of our expectations” and pointed to a 35% year-on-year increase in profit.
He added: “Looking forward, Lettings should benefit from acquisitions, inflation-aligned rental growth and increased penetration of property management. Sales will somewhat depend on the recovery of the market, which is likely to be influenced by rate reductions and general confidence.”
Foxtons also increased its dividend by 9%, with profit before tax up 35% and an EBIT margin improvement of 230 basis points to 14.3%. Net debt rose to £18m due to £3m in acquisitions and £6m returned to shareholders.
