Foxtons Group's Revenue, Adjusted Operating Profit Beat Market Views

Foxtons Group, the UK-based estate agency and lettings agency brand, has reported robust financial performance for the half-year ending June 30, 2024, with revenue of 78.52M GBP, up 20.67% year-over-year. The company's adjusted operating profit also grew significantly, beating market expectations. This strong performance comes despite a challenging London sales market, which remains flat and at historically low levels.



Foxtons Group's strategic focus on lettings and acquisitions has driven this impressive growth. The lettings unit, which represents around 65% of group revenue, grew around 5% in 2024, helped by acquisitions and like-for-like growth. The lettings market is expected to remain resilient in 2025, with high levels of tenant demand and good stock levels underpinning rental prices and transaction volumes.

The company's sales business has also seen a significant increase in market share, rising to 5.1% from 3.1% before Guy Gittins' tenure as CEO. This growth was driven by a 30% increase in sales exchange market share and double-digit growth in lettings new business volumes. Operational improvements, such as a 6% increase in revenue per fee earner and a 15% increase in revenue per branch, have also contributed to Foxtons Group's success.



Foxtons Group's successful integration of Ludlow Thompson ahead of schedule has also reflected strong operational capabilities and contributed to the company's growth. The acquisition has been successful due to Foxtons' comprehensive training programs and the quality of the acquired business and its employees.

However, Foxtons Group faces ongoing cost pressures, including wage inflation and other cost inflation items. Cost inflation for 2024 is expected to be in the range of 3% to 5%. The company is managing these pressures while maintaining a focus on growth and profitability.

In conclusion, Foxtons Group's revenue and adjusted operating profit growth in 2024 were driven by a strategic focus on lettings and acquisitions, operational improvements, and successful acquisitions. Despite a flat London sales market and ongoing cost pressures, the company's strong performance indicates a sustainable growth trajectory. As Foxtons Group continues to navigate the challenges and opportunities in the UK property market, investors should keep a close eye on the company's progress.