5th Mar 2025 13:40
(Alliance News) - Foxtons Group PLC on Wednesday hiked its dividend as pretax profit more than doubled, after the firm made large market share gains in its Sales division.
The London-based estate agent said in 2024 pretax profit increased to GBP17.5 million from GBP7.9 million in the previous year.
Revenue climbed 11% to GBP163.9 million from GBP147.1 million in 2023.
Basic earnings per share multiplied to 4.60 pence from GBP1.80 pence.
Foxtons said Sales revenue was up 31%, driven by a 20% increase in market share and a "modest" 10% recovery in transaction volumes.
The company declared a final dividend per share of 0.95 pence, up 36% from 0.70 pence. The total dividend per share for the year was 30% higher at 1.17 pence from 0.90 pence in 2023.
The estate agency said lettings and sales activity grew in 2024, supported by lower interest rates driving improved demand among buyers, and an increase in the number of homes available to rent.
Looking ahead, the firm said trading in the year to date is in line with its expectations.
Foxtons noted that its under-offer pipeline entering 2025 was at its highest level since 2016, as people look to take advantage of stamp duty relief before the deadline at the end of March.
It said new under-offer activity, which is not influenced by stamp duty relief, has shown "good growth" due to recent interest rate reductions.
It said it remains on track to deliver its medium-term target of adjusted operating profit between GBP28 million and GBP33 million.
Adjusted operating profit was GBP21.6 million in 2024, up 38% from GBP15.7 million in the prior year.
Chief Executive Officer Guy Gittins said: "Across 2024 we retained our position as London's largest lettings agent and the UK's largest lettings estate agency brand, and increased our share of the London sales market by 20%.
"In Sales, significant market share gains drove revenue growth of 31% and meant we agreed the highest number of transactions in London last year, while our Lettings and Financial Services businesses continued to provide the steady, recurring revenues which underpin Group profitability."
Gittins said Foxtons has "more to do" to build an "inclusive, professional and respectful culture", despite progress made over the last two years, after reports alleged staff at the firm have experience sexual harassment and inappropriate behaviour.
This follows an investigation by Bloomberg last month which reported allegations of inappropriate behaviour after interviewing more than 20 former and current employees, and obtaining emails, screenshots, legal and employment records.
"Estate agency is a people-first business, and maintaining an engaging, respectful and inclusive culture is of the utmost importance to us," Gittins said.
Foxtons shares were up 2.6% to 62.60 pence in London on Wednesday afternoon.
By Michael Hennessey, Alliance News reporter
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