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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


Reuters Recommended Reads

  • July 29 - Invitation Homes Q2 revenue beats estimates on rental income growth

  • July 29 - CBRE Q2 results beat estimates, lifts 2026 core EPS outlook

  • July 28 - UK's student housing firm Unite maintains outlook after H1 earnings dip; shares fall


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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