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A tougher housing market helped property website Rightmove to achieve a 77 per cent increase in pre-tax profit in its first full year as a public company.

Underlying profit before tax increased 77 per cent from £17.7 million in 2006 to £31.4 million in 2007, on revenues of £56.7 million.

The site, which advertises homes on behalf of estate agents, saw an 18 per cent increase in advertisers, who also spent an average of 35 per cent more.

Managing director Ed Williams said: "Looking forward, we expect to make further progress in a tougher environment for the housing market.

"Rightmove is a cost effective way for our customers to advertise and makes an even stronger contribution at times in the cycle when enquiries are most scarce."

In 2007, usage of the Rightmove.co.uk website grew by 23 per cent compared to 2006, generating 15 million enquiries tracked through the company's systems for agents and developers.

The company said this growth reflects the importance of the internet in how people search for property.

Rightmove forecast lower transaction volumes in the housing market in 2008, adding that although this will lead to a shrinking advertising market more sellers will be looking to cut costs, creating more business for the company.

The board has proposed a final dividend of 6p, bringing the total dividend to 8p for the year.

Shares in Rightmove rose 0.28 per cent in morning trading to £5.29.