London estate agency Foxtons has announced a surge in pre-tax profits for the past year.
The company, which has 52 branches across the UK with the majority being in central London, posted an 8.2 per cent rise in pre-tax profits to £42.1 million for the year ending December 31st 2014. Foxtons noted that it was helped by a "very strong property sales market" in the first half of the year which was able to push it through a second half downturn.
A positive performance has allowed Foxtons to press ahead with expansion. The firm said that it plans to open another seven branches during the course of the coming year. It is acting swiftly as it predicted last month that it would not be seeing another increase in profits until after the forthcoming general election in May.
Commenting on the figures, Nic Budden, Foxtons chief executive officer, said: "2014 was a year of contrasting halves. The first half was characterised by a very strong property sales market with transactions reaching their highest levels since 2008. In the second half we saw a sharp downturn in property sales volumes, particularly in Central London.
"We continue to be confident that our organic expansion strategy, together with our strong lettings business, will enable us to grow revenue and profit even in a flat property sales market."
Rising house prices
House prices are continuing to rise across the UK. A recent report from the Halifax showed that while prices dipped 0.3 per cent during February, it contributed to an overall quarterly increase of 2.6 per cent. It means the average cost of a home in England and Wales now stands at £192,372.
The fall in the past month has put the average price back within expectation put forward by industry experts at the beginning of the year.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.