Foxtons facing rebuild task, CEO tells investors
Guy Gittins told an investors presentation that Foxtons' market share fell because it didn't have enough front office 'fee earners'.
Foxtons chief Guy Gittins has told investors how he plans to rebuild the company and expand through acquisitions and organic growth.
He described how he had to address “cultural issues” in his previous job with Chestertons, and he now had to do the same at Foxtons.
Gittins replaced former CEO Nic Budden in September, who stepped down after an eight-year tenure at the top following reports that investors were restless over progress at the estate agency.
When the company announced full-year results earlier this month, Gittins gave an honest assessment of the problems at Foxtons.
“My operational review is complete; whilst Foxtons has strong foundations, core operational failings have throttled historical performance and prevented significant unfilled potential from being realised,” he said.
The London agency reported full-year results of revenue up 11% to £140.3m with growth across all businesses: 17% in lettings, 8% in financial services, but only 1% in sales.
Douglas & Gordon lettings, acquired in March 2021, delivered £5.3m of operating profit in 2022, and a 35% return on capital.
Once great
Gittins told investors in an online presentation this week that Foxtons’ market share had fallen from 4.5% in 2016 to 3.4%, and that it should have embarked on an acquisitions strategy five years ago.
He said there had been “a dilution in what once made Foxtons great”, and that it needed to get back to being an innovating company.
I believe passionately about the opportunity we have in front of us.”
“I believe passionately about the opportunity we have in front of us,” he said. The company must utilise the resource of its “enormous database”, he added, and grow organically with much higher sales volume.
There are 3,600 independent businesses which may want to sell up soon, he said, and that this was “a fantastic opportunity” for Foxtons, with possible expansion outside London.
The company recently acquired Atkinson McLeod, a lettings agency in East London, for £7.4m.
