Foxtons says 2022 results ahead of expectations but outlook cautious

Estate agent Foxtons said on Thursday that full-year revenue and operating profit were set to be ahead of market expectations following revenue growth across all segments, but struck a more cautious note on the outlook.

In an update for the year to the end of December 2022, the company said lettings, sales and the financial services division all delivered revenue growth, with group revenue ahead of market expectations, up 11% year-on-year at around £140m. Adjusted operating profit is also ahead of market expectations, it said.

Foxtons said that non-cyclical revenues from lettings and financial services, "which enhance the group's earnings resilience", now represent around 65% of group revenue. It also noted £10.6m of investment in lettings acquisitions in 2022, with the lettings portfolio now at around 26,500 tenancies.

Looking ahead, however, the firm was cautious as it expects the first half of 2023 to be more challenging than the previous year, with a more subdued sales market due to higher interest rates, inflationary pressures and general economic uncertainty.

"Lettings revenues are expected to remain resilient despite these headwinds," it said. "Whilst the group is cautious about the sales market outlook, 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 the year progresses."

At 1010 GMT, the shares were down 2.4% at 37.11p.