UK's Foxtons H1 profit drops
UK's Foxtons H1 profit drops
Overview
UK estate agency and lettings group's H1 revenue fell 3% amid challenging sales and lettings markets
Adjusted operating profit dropped 29%, impacted by tenant-led terminations after Renters Rights Act
Company maintained interim dividend at 0.24p per share
Outlook
Foxtons expects full-year 2026 adjusted operating profit of £17m-£19m, weighted to H2
Company says lettings market demand continues to outstrip supply, impact of terminations moderating
Foxtons expects London sales market to remain challenging due to weak confidence and high interest rates
Result Drivers
RENTERS RIGHTS ACT IMPACT - Elevated tenant-led terminations after RRA introduction led to a £3.0m reversal of previously recognised lettings revenue
SALES MARKET WEAKNESS - Sales revenue fell 13% due to lower transaction volumes amid political uncertainty and higher interest rates
COST ACTIONS - £4.5m of annualised cost savings implemented, including £3.0m from a proactive cost-reduction programme and £1.5m from HQ relocation
Company press release: ID:nRSd4540Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 83.70 mln |
|
H1 Adjusted Operating Profit |
| GBP 8.90 mln |
|
H1 Dividend |
| GBP 0.002 |
|
H1 Pretax Profit |
| GBP 4.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the real estate rental, development & operations peer group is "buy"
Wall Street's median 12-month price target for Foxtons Group PLC is GBp73.00, about 83.9% above its July 29 closing price of GBp39.70
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)