Foxtons Group (FOXT) H1 2025 earnings summary

Executive summary

• Revenue grew 10% year-over-year to £86.1m, with adjusted operating profit up 31% to £12.3m and adjusted EBITDA up 32% to £13.8m, driven by strong lettings and Q1 sales market.

• 65% of revenue generated from non-cyclical, recurring lettings activities, supporting business resilience and financial stability.

• Market share gains in lettings, reinforcing position as London’s top estate agent and UK’s largest lettings brand by volume.

• Operational upgrades included technology enhancements, a new website, AI-driven customer sentiment tools, and investment in people and culture.

• Strategic roadmap and medium-term target to more than double adjusted operating profit to £50m, leveraging platform and acquisition strategy.

Financial highlights

• Adjusted operating profit margin increased by 230bps to 14.3%; adjusted EBITDA margin up to 16.1%.

• Profit before tax rose 35% to £10.2m; adjusted EPS up 23% to 2.7p; reported EPS up 32% to 2.5p.

• Net free cash flow improved to £3.6m from a £0.9m outflow in H1 2024; net debt increased to £18.2m, reflecting acquisitions and shareholder returns.

• Interim dividend increased 9% to 0.24p per share; £2.8m spent on share buybacks; £5.7m returned to shareholders in H1.

• Revenue growth driven by Lettings property management, acquisitions, and strong sales execution.

Outlook and guidance

• Lettings expected to maintain momentum in H2, supported by robust tenant demand, reasonable stock levels, and inflation-linked rent increases.

• Sales growth subdued due to persistent high borrowing costs, weak consumer confidence, and economic uncertainty.

• Financial Services refinance activity anticipated to strengthen in H2; full-year adjusted operating profit guidance unchanged.

• Confident in delivering growth strategy, underpinned by stable, recurring lettings earnings.