Foxtons Group (FOXT) H1 2024 earnings summary

Executive summary

• Achieved 11% revenue growth to £78.5m and 24% increase in adjusted operating profit to £8.5m year-over-year, driven by strong sales market share gains, operational improvements, and market outperformance despite a flat London sales market.

• Reinforced position as London’s leading estate agent and the UK’s largest lettings brand, with double-digit new lettings business volume growth.

• Approximately 70% of revenue generated from non-cyclical, recurring activities, supporting business resilience.

• Integration of Ludlow Thompson completed ahead of schedule, with prior acquisitions performing above expectations and contributing to recurring revenue growth.

• Technology and data platform upgrades, including AI-driven lead scoring, new website, and customer service software, have improved lead generation, productivity, and customer engagement.

Financial highlights

• Revenue rose to £78.5m (+11% YoY); Lettings revenue up 5% to £52.4m, Sales up 28% to £21.6m, Financial Services up 7% to £4.5m.

• Adjusted EBITDA increased 25% to £10.5m; adjusted operating profit up 24% to £8.5m; profit before tax up 24% to £7.5m.

• Adjusted operating profit margin increased to 10.8% (from 9.6%); contribution margin improved to 65%.

• Interim dividend per share increased 10% to 0.22p; basic and adjusted EPS up 36% to 1.9p.

• Net free cash outflow improved to £0.9m (from £4.3m outflow in H1 2023); net debt at period end: £11.3m.

Outlook and guidance

• Full-year outlook unchanged; on track to deliver medium-term target of £25m–£30m adjusted operating profit.

• July trading in line with expectations; no significant change in customer behaviour or market dynamics post-General Election.

• Lettings market expected to remain stable with flat rental levels; healthy stock levels and robust under-offer sales pipeline at highest level since 2016 support H2 growth.

• Financial Services refinance activity expected to remain resilient; new mortgage demand to track sales market performance.