11th Mar 2014 08:15
LONDON (Alliance News) - London and Surrey estate agent Foxtons Group PLC said Tuesday it will pay a special dividend after a strong full year which saw it listed in London in September and then entered into the FTSE 250.
The famously pushy estate agent known for its branded Mini Cooper cars and smartly dressed sales force posted pretax profit of GBP38.9 million for 2013, up from GBP24.9 million in 2012, as revenue rose 16% GBP139.2 million from GBP120.0 million a year earlier.
Foxtons said it will pay its first dividend as a listed company, consisting of a final dividend of 1.70 pence and a special dividend of 3.74 pence per share - a total of 5.44 pence per share.
The company saw growth across its three main business segments - sales, lettings and mortgage broking - as the property market in the UK capital showed no signs of slowing.
Sales volumes were particularly strong during the year, up 23%, pushing revenue for the division to GBP67.4 million, from GBP53.1 million, while lettings revenue rose 5.7% to GBP66.4 million from GBP63.1 million a year earlier.
Foxtons attributed the increase in lettings revenue to new branch openings, with volumes up 6.7%.
The group opened seven new branches in 2013, including in Brixton, south London, where the firm received a hostile reception from some residents who claimed they were being priced out of the area. However, Foxtons said the new branches are performing well and were opened on time and within budget.
Alexander Hall, the mortgage broking arm of Foxtons, benefited from the beginnings of what Foxtons expects to be an improving mortgage market. It finished the year with revenues of GBP4.9 million, up from GBP3.5 million in 2012.
Overall, group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 30% to GBP49.6 million, from GBP38.3 million.
Adjusted EBITDA is defined by the group as profit before tax, depreciation, finance costs, finance income, exceptional items, profit on disposal of assets, and costs of the debt repayment incentive scheme.
Looking ahead, Foxtons said it will focus on the "organic expansion of our branch network, increasing our market share and improving profitability as our larger network benefits from our centralised infrastructure and bespoke technology platform".
The firm said it has a strong pipeline for the start of 2014, with its new branches "maturing well".
Foxton shares were up 1.2% at 379.50 pence at the open Tuesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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