Foxtons Group plc (LON: FOXT) said today it would start to hand back cash to shareholders eight months after raising £22mln as recent trading has been better than expected.
House sales have enjoyed a mini-boom since COVID-19 lockdown restrictions were lifted and the London-focused estate agency said that group revenue in October and November was £14.8mln or up 2% on the same period last year.
Within this, property sales revenue increased by 11% to £5.4mln (2019: £4.9mln) as the market rebounded but lettings income was down 1% to £8.0mln as lower rents offset good volumes. Mortgage broking revenue dropped 14% to £1.3mln.
Because of the recent performance Foxtons said it now expects an operating profit in the year to end December of between £1-£1.5mln and to finish the period with cash of £30mln.
As a result of this strong liquidity, Foxtons has started a £3mln share buyback programme.
The estate agent added that it is also keen to acquire more lettings books after three deals this year and added it has a good pipeline of similar opportunities.
Group revenues for the eleven months to the end of November 2020 were £83.6mln, down 15% on the prior year (2019: £98mln), Foxtons added.