Foxtons sees sales surge while stashing away Government support cash

Foxtons has ploughed millions of pounds into the property portal established by the founder of Purplebricks, while still stashing away stacks of taxpayer cash received via the Government during the pandemic.

London-based Foxtons has received around £7million in furlough cash and business rates relief since the start of the pandemic last year.

It has since churned £3million into Boomin, which was set up by Purplebricks founder Michael Bruce.

Cash stash: Foxtons has received around £7m in furlough cash and business rates relief since the start of the pandemic

Channel 4 and the Mortgage Advice Bureau are also investing in Boomin as part of a £25million fundraising plan for the new portal. 

Foxtons has faced criticism from some investors over its decision to reward bonuses to its chief executive, while not returning Government support cash received during the pandemic.

Other rival firms like Winkworths have repaid their furlough money after seeing a rise in sales triggered by the Chancellor’s stamp duty holiday. 

Today, Foxtons revealed its first quarter revenues increased by 24 per cent to £28.5million in its first quarter.

Sales revenue swelled by 60 per cent to £11.4million and lettings revenue increased 6 per cent to £14.8million. Revenue from mortgage broking rose 20 per cent to £2.3million. 

Looking ahead, first-half operating profits are on track to come in well above the figure for the previous year, Foxtons said.

Douglas and Gordon, which is the London agent Foxtons snapped up in March, contributed £1.8million in sales and lettings revenue during the period, the firm said.

The company, known for its sales tactics and liveried Mini cars, said it expected strong trading to continue. 

Nic Budden, chief executive of Foxtons, said: ‘I am delighted with the start we have made to the year, which is the best first quarter’s trading in some time. 

Investment: Foxtons has churned £3m into Boomin, which was set up by Purplebricks founder Michael Bruce

‘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. 

‘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.’

On 31 March, the group had £22.3million in net cash reserves, after the £14.25million acquisition of Douglas & Gordon. 

Shares in Foxtons are currently down 0.45 per cent or 0.3 points to 66.7p. A year ago the group’s share price was 50p. 

The property market has been in growth mode during the pandemic, egged on by Rishi Sunak’s extension of the stamp duty holiday until the end of June. 

Well-known: London-based Foxtons is known for its liveried Mini cars

This post first appeared on Dailymail.co.uk