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Foxtons Group PLC on Thursday said it expects 2022 revenue to be ahead of market expectations, while its operational review nears completion and has resulted in a new growth plan.
The London-focused estate agency said it expects 2022 revenue to be £140 million, up 11% from a year ago, while it invested £10.6 million in lettings acquisitions, taking its portfolio to around 26,500 tenancies.
Revenue growth was delivered in lettings, sales and financial services, while adjusted operating profit is forecast to be ahead of market expectations alongside revenue.
It said it will continue to target further acquisition opportunities as part of its strategy to deliver attractive total returns on invested capital and improve the resilience of its revenues.
Foxtons’ operational review is also nearing completion, it said, resulting in a plan focused on driving growth and rebuilding Foxtons’ ‘estate agency DNA’.
It said this would require investment in brand and people, including ensuring sufficient headcount capacity across its branch network and the ability to better leverage its data and technology.
The details of the operational review and outcomes will be presented alongside its annual results on March 7.
Looking ahead, Foxton said it expects the first half of 2023 to be more challenging than a year earlier.
This is because it forecasts a more subdued sales market as a result of higher interest rates and general economic uncertainty, alongside inflationary pressures.
However, it expects lettings revenues to remain resilient despite these headwinds and while it remains cautious, Foxtons said the steady reduction in mortgage rates from ‘the elevated levels seen immediately after the mini-budget’ is encouraging and may lead to more favourable markets as 2023 progresses.
‘Much has been achieved in a short period and it is great to see some of the team’s hard work reflected in the 2022 results,’ said Chief Executive Officer Guy Gittins.
‘The economic outlook for the year ahead remains uncertain, but we have a growing portfolio of non-cyclical revenues, and a refreshed operational strategy to rebuild Foxtons’ estate agency DNA and return the business to its position as London’s go to estate agency.’
Shares in Foxtons closed down 0.6% to 37.77 pence each in London on Thursday.
By Greg Rosenvinge, Alliance News reporter
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