Foxtons benefit from takeover Douglas and Gordon
Foxtons (LON:FOXT) released a trading update on Wednesday which said the estate agency has begun 2021 with solid revenue growth.
For Q1, which ended on March 31, Foxtons reported a 24% increase in its revenue to £28.5m as volumes outweighed the pressure caused by rising rent prices in London, where the company conducts a large part of its business.
As lockdown restrictions were eased the estate agency saw the sales arm of its business rise by 60%, while its mortgage broking revenue Gaines 20% to £2.3m.
The update reserved a special mention for Foxton’s takeover of West London agent Douglas and Gordon which contributed approximately £1m in extra revenue.
Commenting on today’s announcement, Nic Budden, Group Chief Executive Officer said:
“I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time. 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,” said Budden.
“Our recent investment in Boomin demonstrates our commitment to remain at the forefront of technology. 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.”