REG - Foxtons Group PLC - Q3 2025 Trading Update

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RNS Number : 4652E  Foxtons Group PLC  23 October 2025

Foxtons Group plc

Q3 2025 Trading Update

 

Year-on-year growth delivered as Lettings growth offset a weaker sales market.

 

23 October 2025 - Foxtons Group plc (LSE: FOXT) ("the Group" or "Foxtons") has
delivered year-on-year revenue growth in both Q3 and year-to-date, with Q3
revenue up 3% to £49.0m and year-to-date revenue up 7% to £135.1m, driven by
the continued strength and resilience of Lettings.

 

Non-cyclical and recurring revenues generated 71% of total Group revenue in
the quarter, and mitigated a weaker sales market, which was impacted by
reduced consumer confidence alongside increased uncertainty surrounding the
delayed Autumn Budget.

Group revenue: 30 September (Q3 and 9 months YTD)

 

 3 months            Q3 2025  Q3 2024  £m change   % change
 Lettings            £33.4m   £31.6m   +£1.7m      +5%
 Sales               £12.5m   £13.5m   (£0.9m)     (7%)
 Financial Services  £3.1m    £2.3m    +£0.8m      +37%
 Total               £49.0m   £47.4m   +£1.6m      +3%

 

 9 months            30 September  30 September  £m change   % change

                     2025 YTD      2024 YTD
 Lettings            £88.0m        £84.0m        +£4.0m      +5%
 Sales               £39.4m        £35.1m        +£4.4m      +12%
 Financial Services  £7.7m         £6.8m         +£0.8m      +12%
 Total               £135.1m       £125.9m       +£9.2m      +7%

Lettings

Q3 revenue increased by 5% to £33.4m (Q3 2024: £31.6m). This was driven by
£0.6m of like-for-like growth(1), supported by operational improvements which
enhanced portfolio retention and boosted new deal volumes, alongside rental
price growth. Acquisitions contributed a further £1.5m of incremental
revenue, while an expected £0.3m reduction in interest on client monies
partially offset the overall growth.

 

Year-to-date revenue was up 5% to £88.0m (Q3 2024 YTD: £84.0m) and includes
£4.4m of incremental acquisition revenue and a £0.8m reduction in interest
on client monies.

 

Sales

Q3 revenue declined 7% to £12.5m (Q3 2024: £13.5m) driven by declines in
exchange volumes primarily as a result of lower market transactions. Q3 buyer
activity in London was slower year-on-year, impacted by deals pulled forward
to Q1 ahead of the stamp duty deadline, limited interest rate reductions, and
uncertainty around the delayed Autumn Budget.

 

Year-to-date revenue was up 12% to £39.4m (Q3 2024 YTD: £35.1m), which
includes a particularly strong Q1 performance as the Group capitalised on
elevated transaction volumes ahead of the 31 March 2025 stamp duty deadline.

 

Financial Services

Q3 revenue was up 37% to £3.1m (Q3 2024: £2.3m) with growth driven by
increased refinance revenue, whilst new purchase mortgage revenue remained
stable despite a weaker sales market. This performance underscores the
resilience of the non-cyclical and recurring refinance portfolio and good
operational progress with lead generation and adviser productivity growth
strategies.

 

Year-to-date revenue was up 12% to £7.7m (Q3 2024 YTD: £6.8m).

Renters' Rights Bill

As the Renters' Rights Bill approaches its final stages in Parliament, we
believe Foxtons is well-positioned to support landlords in navigating the
forthcoming regulatory changes by offering expert professional guidance and
expanding the reach of our high-margin, value-added property management
services.

 

People and culture

In October 2025, Foxtons launched its new people initiative, 'Getting It Done.
Together' (GIDT), as the business continues to build on the work to date to
foster a respectful, rewarding and inspiring culture, which delivers a better
stakeholder experience. The GIDT framework integrates all elements of the
Group's people strategy and underpins how the business works together.

 

Share buyback

On 8 September 2025, the Group announced the commencement of a further share
buyback programme of up to £3m, following on from a previous £3m programme
completed on 5 August 2025. As at the end of trading on 22 October 2025, a
total of 7.7m shares have been bought back for a total consideration of £4.3m
on a year-to-date basis.

 

Cost optimisation

As part of its cost optimisation strategy, the Group is advancing its planned
head office relocation, which is set to deliver meaningful cost savings from
January 2026 by significantly reducing the size of the head office.

 

Outlook

Lettings is expected to trade broadly in line with year-to-date trends for the
rest of the year, continuing to provide a stable and resilient earnings base.

 

Sales is likely to remain subdued for the rest of the year, in particular in
the run up to the delayed Autumn Budget which is creating additional market
uncertainty and making it more challenging than usual to accurately predict Q4
Sales revenue. As a consequence, there is a risk that Q4 Sales revenue falls
below management's expectations.

 

Noting the risks above, full year adjusted operating profit is expected to be
in the range of £21.5m to £23.2m(2) (2024: £21.6m), with the range
primarily reflecting uncertainty over the conversion rate of the Sales
under-offer pipeline.

 

Despite the current weakness in the sales market, there are encouraging signs
for medium-term growth across the Group. The Group's strategic focus on
Lettings continues to provide a stable and resilient earnings base and
provides both organic and acquisitive growth opportunities. Sales market
conditions are expected to improve, driven by greater clarity from the Autumn
Budget and the potential for interest rate cuts. With rebuilt operational
capabilities, the Group is well positioned to maximise returns as volumes
recover.

 

Commenting on Q3, Guy Gittins, Chief Executive Officer said:

"We have delivered another quarter of growth driven by our strategic focus on
Lettings and its recurring revenues, which helped offset a softer Sales
environment. Lettings remains the central part of our growth strategy,
underpinned by our leading market position and strong landlord proposition.
Recent acquisitions in Reading and Watford are performing well, and we
continue to build a pipeline of Lettings focused acquisitions.

 

"Macroeconomic uncertainty and speculation surrounding the delayed Autumn
Budget has resulted in a subdued sales market as some buyers adopt a 'wait and
see' attitude to purchases. There remains significant pent-up demand in the
London volume market and we believe market conditions will improve once there
is better clarity following the Budget, providing a more positive backdrop as
we execute against our growth strategy.

 

"Looking ahead, we remain confident about the medium-term and our ability to
execute against the strategy we set out at June's Capital Market Event."

 

 

 

 

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

 Cardew Group                              + 44 7552 864 250/ +44 7834 524 833

 Olivia Rosser / William Baldwin-Charles

 

( )

(1) Like-for-like revenue is defined as Lettings revenue excluding revenues
from acquisitions operated for less than 12 months and interest on client
monies.

(2) Market expectations for the full year adjusted operating profit is
£23.7m, being the average of forecasts provided by analysts covering the
Group.

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