REG - Foxtons Group PLC - Q1 2026 Trading Update

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RNS Number : 5654B  Foxtons Group PLC  23 April 2026

Foxtons Group plc

Q1 2026 Trading Update

 

Lettings growth delivered and cost actions underway

 

23 April 2026 - Foxtons Group plc (LSE: FOXT) ("the Group" or "Foxtons")
delivered a quarter of operational progress, including growing Lettings
revenues, completing two acquisitions, and repositioning the Sales business to
reflect market conditions. The Group is trading in line with previous
expectations and full year guidance remains unchanged.

Group revenue: 3 months ended 31 March

                     Q1 2026  Q1 2025  £m change   % change
 Lettings            £26.4m   £25.2m   +£1.2m      +5%
 Sales               £10.7m   £16.4m   (£5.7m)     (35%)
 Financial Services  £2.6m    £2.5m    +£0.1m      +3%
 Total               £39.6m   £44.1m   (£4.4m)     (10%)

Lettings

Lettings revenue was up 5% to £26.4m (Q1 2025: £25.2m) reflecting £0.6m of
organic revenue growth, £0.9m of incremental revenues from acquisitions and
£0.2m lower interest on client monies.

 

Organic growth was driven by continued momentum in the cross‑selling of
property management services, growth in Build to Rent revenues, and further
growth from the Reading acquisition in 2024.

 

The Group also continued to execute its acquisition strategy, completing two
acquisitions of leading independent agents in Milton Keynes and Birmingham, as
previously announced. Supported by the industry‑leading Foxtons Operating
Platform, these acquisitions are expected to drive organic growth through both
revenue and cost synergies, while also enabling high‑ROI bolt‑on
acquisitions in these regions. A pipeline of further acquisition opportunities
exists and is currently being worked on.

 

Sales

Sales revenue declined by 35% to £10.7m (Q1 2025: £16.4m), reflecting an
exceptionally strong prior‑year comparator that benefited from elevated
transaction volumes ahead of the 31 March 2025 stamp duty deadline, as well as
a more challenging market backdrop in Q1 2026. Compared to Q1 2024, during
which market volumes were at more normalised levels, like-for-like Sales
revenue was £0.2m higher (Q1 2024: £9.5m).

 

New buyer activity during the period was lower than initially expected,
impacted by elevated levels of uncertainty stemming from recent geopolitical
developments and subsequent increases in mortgage rates and lower mortgage
product availability. To reflect these headwinds, the Group is taking action
to reposition the Sales business to current market conditions.

 

Financial Services

Financial Services revenue was up 3% in the quarter to £2.6m (Q1 2025:
£2.5m), driven by good levels of refinance activity and growth in ancillary
revenues. This helped to offset weaker new purchase activity amid lower sales
market volumes.

 

Cost action and productivity

The Group has responded to recent market headwinds with a proactive
cost‑reduction programme targeting at least £3m of annualised savings,
which is currently under way. This builds on the £1.5m of annualised savings
already delivered through the HQ relocation effective from January 2026.

 

Central to this programme is repositioning the Sales business to optimise
margins in a lower transaction environment. This is being delivered through
enhancements to the operating model to reduce costs while protecting revenue.
Key initiatives include reallocating headcount towards higher‑growth
opportunities in Lettings, redeploying support roles into fee‑earning roles
to drive productivity, and lowering support costs through more efficient
workflows and processes.

 

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

"Our strategic focus on recurring revenues has ensured that Foxtons has
delivered a resilient performance despite recent market headwinds. In the
quarter, we acquired Lettings businesses in the high-growth, complementary
markets of Birmingham and Milton Keynes. This, combined with organic growth
and increasing take up of our property management services, meant that
Lettings revenues increased 5% in the period.

 

"The implementation of the Renters' Rights Act on 1 May 2026 is expected to
create growth opportunities for Foxtons. Higher regulatory requirements
further underline the importance of working with a trusted, professional
agent, and Foxtons' scale, expertise and compliance capabilities position the
business to protect landlords' investments and capture market share.

 

"The Sales market remains subdued and has been further affected by recent
events in the Middle East, which have tempered buyer sentiment and impacted
mortgage rates and availability. As ever, Foxtons is focused on what we can
control by managing costs, increasing efficiencies and repositioning our Sales
business to mitigate the impact of the market.

 

"We remain confident that the resilience of our Lettings and Financial
Services businesses, which represents more than two thirds of revenues,
alongside work to reposition the Sales business, can continue to deliver
market-leading results for customers, growth opportunities for our people and
long-term value creation for shareholders."

 

 

For further information, please contact:

Foxtons Group plc

Chris Hough, Chief Financial Officer
investor@foxtonsgroup.co.uk (mailto:investor@foxtonsgroup.co.uk)

Muhammad Patel, Investor Relations               +44 20 7893
6261

 

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

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

 

 

 

About

Founded in 1981, Foxtons is London's leading estate agency and largest
lettings agency brand, with a portfolio of over 32,000 tenancies. The Group
operates from a network of branches in London and complementary, high growth
markets, 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, supplemented by growth in Sales and
Financial Services. 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: driving portfolio growth by
strengthening customer acquisition and retention, alongside enhancing margins
through cross-selling high-value services.

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

·      Sales growth: increasing market share by growing the share of
property instructions and improving conversion rates, whilst driving
profitability through enhanced productivity.

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

 

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

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