14th Apr 2021 08:58
(Alliance News) -Â Foxtons Group PLC on Wednesday reported revenue growth in "the best first quarter's trading in some time" driven by its acquisition strategy, prompting the London-focused firm to raise expectations.
The estate agent said it started 2021 well, with first quarter revenue up 24% to GBP28.5 million year-on-year.
Letting revenue rose 6% to GBP14.8 million, with London rents remaining under pressure in the period but offset by increased volumes. Sales revenue shot up 60% to GBP11.4 million, reflecting continued acceleration in volume growth and a contribution of GBP800,000 from Douglas & Gordon.
"At the same time as delivering materially higher levels of exchanges during the quarter, the sales commission pipeline has continued to grow through the period," Foxtons added.
Shortly after the quarter's close, Foxtons said it completed a GBP3.0 million investment in Boomin, a next generation property site, which continues the company's strategy of remaining "at the forefront of technological transformation" in the property sector.
"I am delighted with the start we have made to the year, which is the best first quarter's trading in some time. The acquisition of Douglas & Gordon, the largest acquisition in our history, represents an acceleration of the group's strategy and is a business with significant potential. Our recent investment in Boomin demonstrates our commitment to remain at the forefront of technology," said Chief Executive Nic Budden.
"As we look forward, the strong trading momentum is expected to continue through the second quarter and together with tight cost control gives us confidence that operating profit for the first half will be significantly higher than last year."
Shares in Foxtons were up 1.6% at 68.08 pence in London on Wednesday.
By Lucy Heming;Â [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Foxtons