Foxtons Group PLC on Tuesday said it outperformed a difficult property market in 2023, thanks to strong revenue growth from Lettings.

The London-based estate agent has both Sales and Lettings divisions, but it has emphasised Lettings in recent years. Shares were down 3.2% to 57.80 pence midday Tuesday in London, though they are up 40% over the past 12 months.

Foxtons said pretax profit was £7.9 million in 2023, down 34% from £11.9 million in 2022, despite a 4.8% rise in revenue to £147.1 million from £140.3 million.

The company explained that it took £4.5 million in extraordinary costs for the integration of acquisition Ludlow Thompson and also the consolidation of its branch network. These are expected to deliver £3 million in annual cost savings from 2024. Foxtons bought Ludlow in late November last year for £10 million.

Adjusted operating profit was £14.3 million last year, in line with guidance Foxton provided in late January and up from £13.9 million in 2022.

Foxtons said the growth in revenue was entirely thanks to its Lettings division, where revenue rose by 16% to £101.2 million. In the Sales division, by contrast, revenue fell by 14% to £37.2 million amid ‘challenging market conditions’.

More positively in the Sales division, Foxtons said it outperformed the wider London market, which was down by 24% last year, allowing it to reclaim its position as the largest estate agent in the capital.

Foxtons declared a total dividend for 2023 of 0.9p, unchanged on 2022.

Foxtons said the new year has started well, with January and February trading in line with expectations. Looking further out, the company said it is on track for its medium-term goal of £25 million to £30 million in annual adjusted operating profit.

‘2023 was a year in which Foxtons has been fundamentally transformed,’ said Chief Executive Officer Guy Gittins. ‘We have achieved a lot in a short space of time by making improvements across the business, and Foxtons is now in much better shape than the company I inherited 18 months ago.’

Gittins joined Foxtons from rival Chestertons in September 2022.

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