UK's Foxtons sees rental market resilience after annual profit rise
Reuters
Published Mar 05, 2024 07:29
Updated Mar 05, 2024 07:50
(Reuters) -UK's Foxtons (LON:FOXT) forecast resilience in its lettings business after posting a marginal rise in annual profit on Tuesday, as the strength in the rental business helped the estate agency offset subdued property sales activity.
A surge in demand for rental properties in London has led to a supply shortage and a spike in rents, boosting the lettings business of estate agents, at a time home sales transactions have remained weak for most of last year.
The volatility in mortgage rates and repeated repricing of home loans by lenders have hit British housing transaction volumes, although a drop in mortgage rates in early 2024 has rekindled recovery hopes.
"We are on track against our medium-term target of delivering 25 million pounds to 30 million pounds of adjusted operating profit, through organic and acquisitive growth and supported by improving market conditions," CEO Guy Gittins said in a statement.
Foxtons, London's largest lettings agent, said its adjusted operating profit from continuing operations for the year ended Dec. 31 was 14.3 million pounds ($18.1 million), compared with 13.9 million pounds a year earlier.
The company's annual revenue rose 5% to 147.1 million pounds, while lettings revenue - which accounted for about 70% of the group turnover - jumped 16% to 101.2 million pounds.
($1 = 0.7891 pounds)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.