Foxtons Group (FOXT) Trading Update summary

2024 performance highlights

• Revenue grew 11% to approximately £163m, and adjusted operating profit rose 33% to about £19m, both surpassing market expectations.

• Sales market share gains drove a 30% increase in Sales revenue, with a 20% rise in market share and a 10% recovery in London transaction volumes.

• Lettings revenue, making up 65% of total revenue, increased by 5%, supported by acquisitions and organic growth, maintaining Foxtons' position as London's largest lettings agent.

• Two strategic acquisitions in commuter towns added over 2,900 tenancies, enhancing growth opportunities in Reading and Watford.

• Financial Services revenue rose 6%, with operational upgrades and a new Managing Director improving productivity and positioning for further growth.

Financial position and strategy

• Net debt at year-end was £12.8m, including £13.0m spent on acquisitions.

• The group continues to focus on non-cyclical, recurring revenues from Lettings and Financial Services, aiming for medium-term adjusted operating profit of £25m–£30m.

• The Foxtons Operating Platform, strengthened since 2023, leverages data, technology, and a hub-and-spoke model to drive organic and acquisitive growth.

• Strategic priorities include organic and acquisitive growth in Lettings, market share gains in Sales, and Financial Services revenue expansion.

Outlook for 2025

• Lettings is expected to remain resilient, with strong tenant demand and good stock levels supporting rental prices and transaction volumes.

• Sales entered 2025 with the highest under-offer pipeline since 2016, partly driven by first-time buyers ahead of Stamp Duty changes, supporting Q1 revenue growth.

• Early 2025 buyer activity is above prior year levels; future growth will depend on interest rate trends and sustained market positivity.

• Continued enhancements to the Foxtons Operating Platform are planned to maximize market opportunities and deliver on strategic priorities.