REG - Foxtons Group PLC - Q1 2025 Trading Update

FoxtonsAnnouncement

23/04/2025 07:00

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RNS Number : 7483F  Foxtons Group PLC  23 April 2025

Foxtons Group plc

Q1 2025 Trading Update

 

Sales revenue up 73% as rebuilt market leadership position, strong pipeline
conversion and market share gains(1) drove outperformance ahead of the 31
March stamp duty deadline.

 

23 April 2025 - Foxtons Group plc (LSE: FOXT) ("the Group" or "Foxtons") first
quarter Group revenue up 24% to £44.1m (Q1 2024: £35.7m), as the Group
capitalised on heightened levels of market activity ahead of the 31 March 2025
stamp duty relief deadline. The Group is trading in line with management's
expectations.

Group revenue: 3 months ended 31 March

 

                           Q1 2025     Q1 2024  £m change   % change
 Lettings            £25.2m      £24.0m         +£1.3m      +5%
 Sales               £16.4m      £9.5m          +£6.9m      +73%
 Financial Services  £2.5m       £2.3m          +£0.2m      +7%
 Total               £44.1m      £35.7m         +£8.4m      +24%

Lettings

Lettings revenue was up 5% in the quarter to £25.2m (Q1 2024: £24.0m) with
quarter-on-quarter growth attributable to £1.2m of additional revenue from
the October 2024 acquisitions in the Reading area (Haslams Estate Agents) and
the Watford area (Imagine Property Group). Both acquisitions are performing in
line with expectations, with the Imagine business fully integrated onto the
Foxtons Operating Platform and operating under the Foxtons brand.

 

The rapid integration of Imagine facilitated the further bolt-on acquisition
of Watford-based Marshall Vizard in the quarter(2). The acquisition is
expected to deliver strong synergies and scales the Group's recently
established Watford hub, reinforcing Foxtons' leadership position in the local
lettings market. The acquisition demonstrates progress against the Group's
strategy to consolidate market share in high-value commuter towns.

 

Sales

Sales revenue was up 73% to £16.4m (Q1 2024: £9.5m), driven by a £5.6m
increase in revenue on a like-for-like basis (+59%) and a further £1.3m of
additional revenue from the October 2024 acquisitions.

 

As expected, the first quarter saw a heightened level of market transactions
as first-time buyers in particular were motivated to transact ahead of the 31
March 2025 stamp duty deadline.

 

The Group capitalised on this market activity and delivered the highest
quarterly Sales revenue since before the Brexit vote in 2016, with strong
conversion of the under-offer pipeline delivering 20% year-on-year growth in
market share of exchanges (Q1 2025: 5.6%; Q1 2024: 4.6%).

 

With a large number of completions brought forward to benefit from stamp duty
relief, the Sales under-offer pipeline entering the second quarter was around
10% lower than prior year.  With good momentum within the Sales business, the
under-offer pipeline is expected to rebuild over the second quarter. The speed
and extent of future interest rate reductions will likely determine the number
of buyers entering the market, with faster interest rate cuts providing an
opportunity for accelerated growth.

 

Financial Services

Financial Services revenue was up 7% in the quarter to £2.5m (Q1 2024:
£2.3m), with new purchase transaction revenue increasing by 71% reflecting
increased Sales market activity combined with good levels of adviser
productivity, offset by a 38% decrease in refinance revenues as a result of
fewer products expiring across the first quarter compared to prior year.

 

 

 

Capital Markets Event

Foxtons will host a Capital Markets Event on 4 June 2025 from 9.30am -
11.30am, outlining the Group's strategy for delivering the next stage of
growth. The event will be held in person at the London Stock Exchange, 10
Paternoster Square, London, EC4M 7LS and will also be broadcast virtually(3).

 

Commenting on Q1, Guy Gittins, Chief Executive Officer said:

"This has been a very strong start to the year, with Foxtons recording its
highest quarterly Sales revenue in nearly 10 years.

 

"In Lettings, we produced another robust performance with revenues up 5%,
including contributions from our new offices in the Watford and Reading areas.
Lettings remains a key area of focus for Foxtons, with high quality
non-cyclical and recurring revenues underpinning the Group's financial profile
and driving resilient earnings.

 

"In Sales, operational improvements implemented since 2022, combined with
strong market share growth and increased market volumes, drove a 73% increase
in revenue. The level of revenue growth demonstrates the scale of the
turn-around within Sales, as the business capitalised on stamp duty-driven
increased market activity far more effectively than in previous years, such as
during the stamp duty relief deadline in 2021.

 

"Despite ongoing macro volatility, with our market leadership position and
resilient business model, I am confident we can drive further growth this
year, and deliver long-term value for shareholders, employees, and customers."

 

For further information, please contact:

 

 Foxtons Group plc                           investor@foxtonsgroup.co.uk (mailto:investor@foxtonsgroup.co.uk)

 Chris Hough, Chief Financial Officer        +44 20 7893 6261

 Muhammad Patel, Investor Relations

 Cardew Group                                Foxtons@cardewgroup.com (mailto:Foxtons@cardewgroup.com)

 William Baldwin-Charles / Olivia Rosser     +44 7834 524 833 / + 44 7552 864 250

Note: Values in tables have been rounded and totals may therefore not be the
sum of presented values in all instances.

(1) Sales market share calculated as Foxtons' share of exchange volumes in
Foxtons' core addressable markets (Q1 2025: 5.6%; Q1 2024: 4.6%). Source:
TwentyCi.

(2) Acquisition completed on 28 February 2025 for £2.3m on a cash free and
debt free basis, of which £0.5m is deferred for 12 months subject to
performance conditions.

(3) In person places are limited and all attendees must register by contacting
investor@foxtonsgroup.co.uk (mailto:investor@foxtonsgroup.co.uk) . The virtual
presentation link will be shared on the day of the presentation. The
presentation materials will be available following the event at the Group's
corporate website: https://www.foxtonsgroup.co.uk
(https://www.foxtonsgroup.co.uk/) .

 

 

 

About

 

Founded in 1981, Foxtons is London's leading estate agency and largest
lettings agency brand, with a portfolio of over 31,000 tenancies. The Group
operates from a network of interconnected, single-brand branches in London and
surrounding high growth commuter towns, offering a range of residential
property services across three business segments: Lettings, Sales and
Financial Services.

 

The Group's strategy to accelerate growth is focused on non-cyclical and
recurring revenues from Lettings and Financial Services refinance activities,
supplemented by market share growth in Sales. This growth is underpinned by
its key competitive advantage, the Foxtons Operating Platform, which comprises
unrivalled and market leading technology and data capabilities, its brand,
unique hub and spoke model and its performance-led and inclusive culture.

 

 

 

The business has four strategic priorities:

 

·      Lettings organic growth: winning new property instructions, with
high-quality landlord service driving revenue growth.

·      Lettings acquisitive growth: acquire, integrate and service
high-quality lettings portfolios.

·      Sales market share growth: using the reinvigorated brand and
increased productivity to continue to grow addressable market share.

·      Financial Services revenue growth: improving scale and cross-sell
to drive revenue growth.

 

To find out more, please visit www.foxtonsgroup.co.uk

 

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