Foxtons Group PLC Q1 Trading Update (8251W)
20 Abril 2023 - 3:00AM
UK Regulatory
TIDMFOXT
RNS Number : 8251W
Foxtons Group PLC
20 April 2023
FOXTONS GROUP PLC
Q1 Trading Update
Strong growth in Lettings drives revenues as operational
turnaround progresses
20 April 2023 - Foxtons Group plc (LSE: FOXT) has started the
new financial year well and in line with management's expectations.
Revenue in the first quarter was up 10% to GBP32.9m (Q1 2022:
GBP30.0m) with Lettings revenue up 27%, reflecting continued
progress against the Group's strategy to grow its resilient
Lettings business both organically and through acquisition.
Group revenue: 3 months ended 31 March
Q1 2023 Q1 2022 GBPm change % change
(1)
-------------------- ---------- ---------- ------------- ---------
Lettings GBP22.8m GBP17.9m GBP4.9m 27%
Sales GBP8.1m GBP9.6m (GBP1.6m) (16%)
Financial Services GBP2.0m GBP2.4m (GBP0.4m) (18%)
-------------------- ---------- ---------- ------------- ---------
Total GBP32.9m GBP30.0m GBP2.9m 10%
-------------------- ---------- ---------- ------------- ---------
(1) 2022 revenues are presented on a continuing basis and
exclude revenue from the D&G Sales business which was disposed
of on
11 February 2022.
Lettings
Lettings revenue was up 27% in the first quarter to GBP22.8m (Q1
2022: GBP17.9m), with organic revenue growth of 20% and GBP1.3m
contribution from the acquisitions completed in May 2022 and March
2023. Lettings revenue grew to 69% of Group revenue, up from 60%
last year.
Organic revenue growth was underpinned by operational
improvements and an increase in average revenue per transaction.
Growth in average revenue per transaction includes a focus on
securing longer non-cancellable tenancy terms (resulting in a
greater proportion of revenue being recognised at the start of the
tenancy), increased cross sell of our higher value property
management service, and higher average rental prices.
Sales
In line with management's expectations, Sales revenue declined
16% to GBP8.1m (Q1 2022: GBP9.6m), driven by a reduction in
exchange volumes in the quarter. This was a consequence of the
lower under-offer sales pipeline at the start of the year,
resulting from reduced buyer activity following the September
mini-budget.
However, we are much encouraged by the early impact of the
operational improvements we have made. During the quarter, we saw
an increase in instruction market share and we completed the
highest number of quarterly viewings in the last 5 years. Combined
with growing levels of buyer demand, this has supported good growth
in the value of the under-offer pipeline over the course of the
first quarter.
Financial Services
Financial Services revenue was similarly down 18 % in the
quarter to GBP2.0m (Q1 2022: GBP2.4m). Against a backdrop of lower
sales market activity, investment in adviser capacity supported
marginally higher volumes, particularly from refinance
customers.
Commenting on Q1, Guy Gittins, Chief Executive Officer said:
"We delivered good year-on-year growth in the first quarter,
reflecting strong growth in our resilient Lettings business as
operational improvements and high levels of tenant demand drove
strong organic revenue growth, supplemented by incremental revenues
from acquisitions. As expected, Sales and Financial Services
revenues were lower year-on-year, reflecting the lower under-offer
pipeline at the start of 2023 and volatility in the mortgage
market. Over the course of the quarter, operational improvements
and increasing levels of buyer demand, meant we have made good
progress in rebuilding the under-offer sales pipeline.
"We are focused on delivering the operational upgrades I set out
in March at pace. Key areas of progress in the quarter include
rebuilding fee generating headcount and embedding estate agency
culture changes; including prioritising lead generation in
competitive markets, focusing on core estate agency KPIs and
improving cross-sell across the Group.
"I am encouraged by the early results achieved to date. We have
grown our market share of Sales instructions and completed the
highest number of viewings in the last 5 years, delivered growth in
the cross-sell of Lettings property management services, and in
Financial Services delivered growth in both the volume of mortgages
underwritten and the cross-sell of protection products.
"I remain confident in our refocused strategic priorities and
the determination of the business to deliver market share growth
and shareholder value by making Foxtons London's go-to estate
agent."
For further information, please contact:
Foxtons Group plc investor@foxtonsgroup.co.uk
Chris Hough, Chief Financial +44 20 7893 6261
Officer
Muhammad Patel, Investor Relations
TB Cardew Foxtons@tbcardew.com
Tom Allison / Will Baldwin-Charles +44 7789 998 020 / 44 7834 524
/ 833/
Olivia Rosser + 44 7552 864 250
About
Foxtons is London's most iconic estate agency. Founded in 1981,
The Group operates from a network of interconnected branches,
offering a range of residential property related services across
three business segments: Lettings, Sales and Financial
Services.
The Group seeks to deliver significant shareholder value through
its strategic priorities:
-- Lettings organic growth
-- Lettings acquisitive growth
-- Sales market share growth
-- Financial Services revenue growth
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