On Wednesday, Foxtons Group plc (LSE: FOXT), a leading London estate agency, reported robust financial results for the third quarter of 2024, marking the highest Q3 sales revenue since 2015. The company achieved an 8% increase in Q3 revenue, reaching £47.4 million, compared to £43.9 million in the same period last year. Year-to-date revenue as of September 30, 2024, also saw a 10% rise to £125.9 million from the previous year's £114.8 million.
The significant 36% surge in sales revenue to £13.5 million was a key contributor to this quarter's performance, outpacing the prior year's £9.9 million. This success was attributed to substantial market share gains and a recovery in Foxtons' operational markets. Lettings revenue remained stable at £31.6 million, consistent with the strong figures of Q3 2023, bolstered by operational improvements and the integration of Ludlow Thompson, which added £1.0 million in incremental revenue.
Lettings revenue for the nine months leading up to September 30, 2024, increased by 3% to £84.0 million, which includes £3.1 million from incremental acquisition revenues. The lettings market dynamics have been stable, with rental prices matching the previous year, strong tenant demand, and an increase in available stock, all supporting new business volume growth.
In the sales division, Foxtons outperformed the wider market with a 34% increase in transaction volumes over the previous year, while the market overall saw a growth of approximately 13%. Year-to-date sales revenue climbed by 31% to £35.1 million, reflecting a 25% increase in market share. The company's under-offer pipeline at the end of September was 23% higher than the previous year, indicating a strong start for the final quarter.
Financial Services revenue for Q3 was nearly unchanged at £2.3 million, slightly down from £2.4 million in Q3 2023. However, year-to-date revenue in this segment grew by 3% to £6.8 million. Increased adviser productivity and operational enhancements have helped offset the impact of lower value product transfer mortgages on average commission levels.
Foxtons expressed its support for the Renters' Rights Bill currently moving through Parliament, emphasizing its commitment to providing valuable advice and services to customers as they navigate the new legislation. The company anticipates that the bill will also present new opportunities for growth.
Guy Gittins, CEO of Foxtons, commented on the results, highlighting the third consecutive quarter of growth and the company's optimism for the final quarter. With a strong sales pipeline and a solid balance sheet, Foxtons is well-positioned to continue its growth and profitability in line with market expectations, aiming for a medium-term target of £25 million to £30 million in adjusted operating profit.
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