Headline: "Foxtons' Q3 Sales Soar to Their Highest Since 2015 with a 36% Increase"
On Wednesday, leading London real estate agency Foxtons Group plc (LSE: FOXT) announced its strong financial results for the third quarter of 2024, recording its highest Q3 sales revenue since 2015. The company achieved revenue of £47.4 million this quarter, marking an 8% increase compared to £43.9 million in the same period last year. Year-to-date revenue as of September 30, 2024, also rose by 10% to £125.9 million, compared to £114.8 million last year.
A significant contributor to this quarter's performance was a 36% increase in sales revenue, reaching £13.5 million, compared to £9.9 million last year. This success was attributed to significant market share gains and a rebound in the markets where Foxtons operates. Lettings revenue remained steady at £31.6 million, parallel to strong figures from Q3 2023, thanks to operational improvements and the integration of Ludlow Thompson, which provided an additional £1.0 million in revenue.
For the nine-month period ending September 30, 2024, lettings revenue increased by 3% to £84.0 million, including £3.1 million in additional acquisition revenue. The dynamics of the lettings market remained stable, with rental prices unchanged from the previous year, while strong tenant demand and increased available stock supported new business volume growth.
In the sales segment, Foxtons outperformed the market, recording a 34% year-over-year increase in transaction volumes compared to the market's approximately 13% growth. Year-to-date sales revenue rose by 31% to £35.1 million, reflecting a 25% increase in market share. The company's pipeline of transactions awaiting offer as of the end of September was 23% higher than the previous year, indicating a strong start to the final quarter.
In Q3, Financial Services revenue remained nearly unchanged with a slight decrease to £2.3 million, compared to £2.4 million in Q3 2023. However, year-to-date revenue in this segment rose by 3% to £6.8 million. Increased advisor efficiency and operational improvements helped offset the impact on average commission levels from lower-value product transfer mortgages.
Foxtons expressed its support for the Right of First Refusal Bill currently passing through Parliament, emphasizing its commitment to providing valuable advice and services to help customers adapt to new legislation. The company foresees the bill also offering new growth opportunities.
Commenting on the results, Foxtons' CEO Guy Gittins highlighted the third consecutive quarter of growth and expressed optimism for the final quarter. With a strong sales pipeline and a robust balance sheet, Foxtons is poised to sustain growth and profitability in line with market expectations and aims to achieve an adjusted operating profit target of £25 million to £30 million in the medium term.