Foxtons Group (FOXT) H2 2024 earnings summary

Executive summary

• Achieved 11% revenue growth, 38% adjusted operating profit growth, and 47% adjusted EPS growth in 2024, driven by market share gains, operational improvements, and strategic acquisitions.

• Completed business turnaround and initiated next phase of growth, maintaining leadership in London and UK lettings, with 67% of revenue from non-cyclical, recurring activities.

• Significant investments in technology, data, and staff training enhanced productivity, lead generation, and customer experience.

• Expanded through acquisitions in commuter towns, including Haslams, Imagine, and Marshall Vizard, reinforcing leadership and unlocking new growth markets.

• Operational upgrades and a progressive dividend policy support ongoing growth and shareholder returns.

Financial highlights

• Group revenue rose 11% to £163.9m, with Lettings up 5% to £106m, Sales up 31% to £48.6m, and Financial Services up 6% to £9.3m.

• Adjusted operating profit increased 38% to £21.6m; adjusted EBITDA up 36% to £23.8m; margin up 260bps to 13.2%.

• Statutory profit before tax up 121% to £17.5m; adjusted profit before tax up 40% to £19.2m; adjusted EPS up 47% to 5.0p.

• Net free cash flow of £9.8m, reversing a prior year outflow; total dividend for 2024 up 30% to 1.17p per share.

• Contribution margin improved to 64% in 2024; leverage ratio maintained below 1.25x.

Outlook and guidance

• Trading in early 2025 is in line with expectations; Lettings market stable with flat rents and healthy stock.

• Sales pipeline at record levels, 21% higher year-on-year, with volumes boosted by first-time buyers ahead of stamp duty changes.

• On track to achieve medium-term adjusted operating profit target of £28m–£33m, despite £2m additional national insurance costs.

• Further acquisitions planned, especially in commuter towns, to drive incremental Lettings and sales growth.

• Future growth dependent on interest rate reductions and buyer activity; regulatory changes may affect transaction volumes.