Foxtons Full Year Results 2024
47% earnings growth1 driven by significant Sales market share gains2 and strong returns from Lettings acquisitions. Next phase of the growth plan now firmly in focus.
Foxtons Group plc (LSE:FOXT) (“the Group” or “Foxtons”) has delivered another year of growth. Strengthened operational capabilities, combined with strong returns from Lettings acquisitions, have underpinned 47% earnings growth. The Group is on track to deliver against its medium-term targets set in March 2023 and the next phase of the growth plan is now coming into focus. Key elements of this growth plan will be communicated at a capital markets event in Q2 2025.
Financial highlights:
- Group revenue up 11% to £163.9m, with growth delivered in each business:
– Lettings revenue up 5%, boosted by earnings accretive acquisitions.
– Sales revenue up 31%, driven by double-digit market share gains2.
– Financial Services revenue up 6%, due to operational upgrades and stronger new transaction volumes.
- Adjusted operating profit up 38% to £21.6m, showing significant progress towards medium-term target of £28m-£33m (excluding amortisation of acquired intangibles, and consequentially restated from £25m-£30m)8.
- Stronger revenue to profit conversion drove improved adjusted operating profit margin of 13.2% (+260 bps).
- Profit before tax up 121% to £17.5m.
- Significant improvement in net free cash flow (2024: £9.8m; 2023: (£0.1m)) reflecting a return to strong cash generation and more normalised working capital movements.
- Year-end net debt of £12.7m (2023: £6.8m net debt), reflecting improved cash generation, £12.7m of acquisition spend, and £2.8m of dividends.
- Total dividend up 30% to 1.17p per share in-line with the Group’s progressive dividend policy.
Strategic highlights
- Continued delivery against strategic priorities:
– 3.3% Lettings organic revenue CAGR since 2022, within the Group’s target range of 3%-5%9.
– 26% average return on Lettings acquisitions, ahead of the Group’s target of 20%10, with synergistic acquisitions continuing to be a key driver of profit growth.
– 4.9% Sales exchange market share (2023: 4.1%), ahead of the Group’s target of at least 4.5% (20% growth versus 2023)2.
– 67% of revenue generated from non-cyclical and recurring activities, underpinning Group earnings11.
Operational highlights:
- Largest lettings agent in London and largest lettings brand in the UK12and highest number of sales agreed in London in 202413.
- Organic Lettings portfolio grew 4%, driven by a 12% increase in new business volumes and stronger landlord retention, supported by the Group’s data and technology capabilities and improving customer service levels.
- Two commuter town acquisitions (Reading and Watford) completed in October 2024 for an initial consideration of £12.6m. The acquisitions are earnings enhancing and unlock new organic and inorganic growth opportunities. The rapid integration of the new Watford hub has enabled the further acquisition of Marshall Vizard, completed on 28 February 202514. This bolt-on acquisition is expected to generate strong synergies and reinforce Foxtons’ leadership position in the Watford lettings market.
Guy Gittins, Chief Executive Officer, said:
“2024 was another strong year for Foxtons with revenue up 11% and adjusted operating profit up 38%. Across 2024 we retained our position as London’s largest lettings agent and the UK’s largest lettings estate agency brand, and increased our share of the London sales market by 20%.
“In Sales, significant market share gains drove revenue growth of 31% and meant we agreed the highest number of transactions in London last year, while our Lettings and Financial Services businesses continued to provide the steady, recurring revenues which underpin Group profitability.
“In October 2024, we acquired Haslams Estate Agents and Imagine Property Group, both businesses with strong lettings portfolios, taking us into the exciting new growth markets of Reading and Watford. Last week, as part of our Watford growth plan, we acquired Marshall Vizard, a high-quality lettings business that further strengthens Foxtons’ Watford presence and market share.
“Estate agency is a people-first business, and maintaining an engaging, respectful and inclusive culture is of the utmost importance to us. We are focused on creating an environment which attracts, motivates and retains a diverse team of talent, that can together deliver excellent customer outcomes. Although significant progress has been made over the last two years, including the introduction of mandatory annual respect and inclusion training, strengthened ED&I policies, and enhanced whistleblowing and speak up processes, there remains more to do. This is particularly important to me and we remain steadfast in our commitment to an inclusive, professional and respectful culture and we will continue to seek further improvement and progress.
“Changes made to date are supporting our transformation, including: a 25% increase in female managers over the last two years; improving employee engagement; and a 12% increase in employee retention rates since 2022 as new career development and diversity programmes take effect. Our latest employee engagement survey, indicated that 87% of employees believe Foxtons values diversity and builds diverse teams, and 81% of employees recommend Foxtons as a great place to work, 8% higher than equivalent businesses in the UK. These initiatives are particularly important to me and while progress has been made, we recognise there is more we can and should do. We remain steadfast in our commitment to an inclusive, professional and respectful culture and we will continue to seek further improvements and progress.
“After a good start to 2025, we are well positioned to deliver another year of growth and are on-track to deliver against the medium-term growth targets I set out in March 2023. I look forward to setting out details of the next stage of our growth plan to investors at a capital markets event in Q2 2025.”
You May Also Enjoy
A third of Britons aspire to own buy-to-let properties, new study finds
UK house prices growing by 2.5% according to Halifax
UK house prices dip slightly in May, but market remains steady
Estate Agent Content
The cost of voids rises by £200 for England’s landlords
