Foxtons swings to FY profit, to keep mortgage broking arm

Foxtons said on Wednesday that it swung to a full-year profit amid improved market conditions and that it had decided not to sell its mortgage broking business.

In the year to the end of December 2021, the estate agent swung to a pre-tax profit of £5.6m from a loss of £1.4m a year earlier, with revenues of £126.5m, up from £93.5m. In 2019, the company had made a pre-tax loss of £8.8m and revenues of £106.9m.

Foxtons said the jump in revenue reflects "improved market conditions, market share growth and contribution from lettings portfolio acquisitions including Douglas & Gordon".

Chief executive Nic Budden said: "2021 was a good year of progress for Foxtons with revenues, profits and cash flow significantly ahead of 2019 and 2020. We successfully delivered the first phase of our growth plan, making strong progress against our core strategic objectives and are confident of delivering further growth this year and into the future.

"We extended our leadership position in the London sales and lettings markets, developed new revenue channels and enhanced cross-sell capabilities by leveraging our investments in marketing and technology. We are delighted with the D&G acquisition which has had a materially positive impact on profits. With increased market share, and the successful integration of acquisitions driving strong growth in revenue, profits and cash flow, we re-instated the dividend for the first time since 2017 and bought back £5.7m of shares."

Foxtons also said that following a strategic review, it has decided not to sell its Alexander Hall mortgage broking business. "Alexander Hall intends to increase its financial adviser base, to fully realise the financial services cross-selling opportunity and grow profits significantly," Budden said.