29th Apr 2014 08:16
LONDON (Alliance News) - Foxtons PLC said Tuesday its performance since the beginning of the year has been encouraging, with sales boosted by significant volume growth in new and existing branches and increasing property prices.
In an interim management statement for the period January 1 to date, the estate agency said group turnover rose 19.2% to GBP34.1 million as property sales commissions jumped 41.1% on 2013 to GBP17.6 million, driven by significant volume growth in new and existing branches and increasing property prices.
Mortgage revenue during the quarter rose 53.5% although from low levels last year, to GBP1.4 million.
Lettings revenue for the period was broadly flat at GBP15.0 million, as expected, said Foxtons, as the sharp upturn in the sales market has compressed lettings demand and rents.
On an adjusted basis, earnings before interest, taxation, depreciation and amortisation was GBP10.9 million, up 44.9% as a result of "strong revenue growth and the substantial operational leverage inherent in Foxtons centralised business model," said the company.
Looking ahead, the firm is set to open four new branches in the coming months; Stoke Newington and Harrow in May and a further two in the autumn.
"Turnover is well up on the comparative period and margins have been further enhanced as we continue to benefit from the roll out of our centralised business model. As we have made clear previously, the outlook in the longer term will primarily be determined by the availability of housing stock, however, as of today our pipeline is well ahead of last year and gives us confidence in the results for the half year..." said Chairman Gary Watts.
Shares in Foxtons were trading 1.41% lower at 315.68 pence per share Tuesday morning, one of the biggest fallers on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
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