Foxtons new CEO enjoying strong start to honeymoon period

Famous London agency Foxtons has enjoyed a shares boost on the back of a 25 per cent spike in revenue in the third quarter of this year, compared to last. 

Revenue was £43.8m for the three months to the end of September compared to £35.1m last year in the same period. 

This was driven by an increase in its lettings, sales and financial services; lettings recorded £29m this quarter, up 18 per cent from 2021, while financial services and sales each increased around 40 per cent.

There was a 23 per cent increase in the average revenue per rental transaction as higher rents along with longer tenancies compensated for a nine per cernt fall in the number of lettings that took place.

A statement to shareholders says the company is “mindful of the ongoing macroeconomic and political uncertainty” but its performance this quarter “gives us confidence” for the rest of the year. 

Guy Gittins, who joined as chief executive from Chestertons just last month, told shareholders that Foxtons “has significant unfulfilled potential and there is a shared understanding and vision of how we can deliver this.”

He claims to be “excited about leading this reset and determined we can get Foxtons back on the front foot”, and building on “positive momentum as the company enters the final quarter with a less certain sales market backdrop”.

At one point yesterday Foxtons’ share price had bounced 13 per cent on the basis of the strong figures.

Market analyst and PropTech entrepreneur Anthony Codling says: “Much like Rishi Sunak during Prime Minster’s Questions, Foxtons new chief executive Guy Gittins had a spring in his step as he delivered his first trading update to the market. Whilst mortgage rates rose and the costs of living increased, Foxtons delivered revenue growth across all areas of its business: sales, lettings and financial services.  

“Foxtons is mindful of the challenges ahead, but their performance during the third quarter gives them confidence in the outturn for the full year, which they now expect to be ahead of previous expectations. This suggests that Mr Gittins honeymoon period may last longer than Mr Sunak’s.”