By Foxtons Group revealed a decrease in pre-tax profit due to increased operating costs and the incorporation of Ludlow Thompson estate agent. Despite this, the company remains committed to its medium-term goals.
Financial Overview
- Profit Decline: Pre-tax profit for 2023 was reported at £7.9 million, down from £11.9 million the previous year.
- One-Off Costs: The group incurred one-off costs of £4.5 million, primarily linked to the merger with Ludlow Thompson and branch network streamlining. This integration is expected to yield annual synergies of £3 million by 2024.
- Revenue Growth: Total revenue increased by 5% to £147.1 million, while sales revenue dropped by 14% to £37.2 million due to market challenges.
Operational Updates
- Progress: Foxtons successfully implemented operational enhancements ahead of schedule. The focus remains on rebuilding fee earner levels and reinforcing core technology and data capabilities.
Future Outlook
- Positive Forecast: The company is confident in achieving growth in 2024 and hitting the adjusted operating profit target of £25 million to £30 million over the medium term.
- Consistent Performance: Performance in January and February aligned with expectations, indicating stability in operations.
Dividend Announcement
- Shareholder Returns: The board approved a final dividend of 0.7 pence per share, consistent with the previous year’s payout.
Foxtons Group anticipates continued progress towards its strategic objectives amidst a challenging market environment.
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