Foxtons shares higher after Q1 trading update By Investing.com

By Samuel Indyk

Investing.com – Shares in UK estate agent Foxtons (LON:FOXT) were trading higher on Wednesday morning after the company reported a 24% increase in group revenue in Q1 to £28.5mln.

Revenue breakdown

Lettings revenue grew just 6% as rents in London remained under pressure during the quarter, declining by around 12%, but this was offset by an increase in volumes from Q1 2020.

Sales revenue increased 60% reflecting accelerating volume growth and a contribution of £0.8 million following the newly acquired Douglas & Gordon business.

“I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time,” said Foxtons CEO Nic Budden. “The acquisition of Douglas & Gordon, the largest acquisition in our history, represents an acceleration of the Group’s strategy and is a business with significant potential.”

Boomin investment

The company also announced it has made a £3mln investment in property site Boomin. Boomin describes itself as “the most powerful property site ever” and officially launched to the public on April 2nd this year. Channel 4 is also reportedly investing in the competitor to Rightmove.

“Our recent investment in Boomin demonstrates our commitment to remain at the forefront of technology,” Budden added.

“As we look forward, the strong trading momentum is expected to continue through the second quarter and together with tight cost control gives us confidence that operating profit for the first half will be significantly higher than last year.”