Foxtons H1 profits grow as strong lettings offset sales weakness

In the six months to the end of June, pre-tax profit rose 42% from the same period a year earlier to £6.1m, on revenue of £70.9m, up 9%.

Foxtons said strong growth in lettings more than offset the expected reduction in sales volumes. Lettings revenue increased 26% to £49.8m, including £5.6m of organic growth and £2.7m of incremental contribution from acquisitions.

Revenue from the sales arm fell 19% to £16.9m. This was due to lower expected exchange volumes. Meanwhile, revenue from the financial services business was down 12% to £4.2m as higher refinance volumes were offset by lower new purchase transaction volumes and smaller loan sizes.

Chief executive Guy Gittins said: "Our lettings business continued its growth trajectory, with double digit organic growth delivered in a competitive market. In sales, although revenues were down due to the September 2022 mini-budget, which impacted the under-offer pipeline at the start of the year, we significantly grew market share, rebuilt the pipeline at the fastest rate in the last five years and agreed a similar level of new sales as last year, despite challenging market conditions.

"Looking ahead, despite the uncertainty in the sales market, our resilient and growing Lettings business combined with continuing sales market share gains and a strengthened sales culture, means we are well positioned for the rest of the year."