Foxtons Group PLC has released its unaudited 2023 year-end trading update, showcasing a year of market outperformance and operational turnaround. The company's revenue and adjusted operating profit for the year ended December 2023 are expected to exceed consensus market expectations. The revenue of approximately £147m and adjusted operating profit of around £14m both surpassed market forecasts. The company's improvements across data, core processes, culture, and brand successfully unlocked the value of the scalable Foxtons Operating Platform, leading to significant market share growth across Lettings, Sales, and Financial Services.

In 2023, Lettings, representing around 70% of Group revenue, grew by approximately 16%, surpassing £100m in revenue for the first time in Foxtons' history. This growth reflects the Group's focus on non-cyclical and recurring revenues. Additionally, the company completed two Lettings acquisitions for £15.2m, adding over 2,800 tenancies to its portfolio. Sales also outperformed the market, delivering significant levels of market share growth versus 2022. Foxtons was the UK's fastest-growing large lettings and sales agency brand, growing its share of new lettings and sales instructions by 36% and 26%, respectively.

Total revenue for the full year was ahead of consensus market expectations at approximately £147m, up around 5% versus the prior year. Adjusted operating profit of approximately £14m was also ahead of consensus market expectations and broadly flat against the prior year. The growth was primarily driven by Lettings, which grew by approximately 16% and passed the £100m revenue milestone, offsetting expected reductions in Sales and Financial Services revenue caused by a significantly weaker sales market.

The Group continued its successful acquisition strategy in 2023, adding over 2,800 tenancies to its Lettings portfolio following the acquisitions of Atkinson McLeod and Ludlow Thompson in the year. The company also expects annualized cost savings of approximately £3m in 2024 as it delivers synergies related to the November 2023 acquisition of Ludlow Thompson and consolidates certain branches within the Foxtons network by leveraging lease exit events.

Looking ahead, Lettings is expected to remain resilient in 2024, with the business continuing to display strong recurring and non-cyclical characteristics. In Sales, the Group entered 2024 with an under-offer pipeline significantly ahead of the prior year, which should support a good level of year-on-year revenue growth in Q1. The company is well-positioned for its medium-term growth ambition to deliver £25m to £30m of adjusted operating profit.

Guy Gittins, Chief Executive Officer, expressed, "2023 has been a transformational year for Foxtons, following the implementation of a refreshed strategy and operational turnaround plan. We have delivered a year of market share growth and have ended the year with revenue and adjusted operating profit ahead of market expectations; our operational upgrades and investment in fee earners."