Foxtons full year profits hit by acquisition spree costs

Foxtons has seen its profit before tax slump 34% to £7.9 million despite a 5% increase in revenue, the company has announced.

Revealing its full-year results for last year, the agency says profit before tax is down to £7.9m after charging £4.5m of ‘adjusted items’ mainly due to the costs of integrating Ludlow Thompson and “branch network consolidation”.

Sales down

Revenue was up 5% to £147.1m and adjusted operating profit up 2% to £14.3m. But sales revenue was down 14% to £37.2m

Adjusted EBITDA rose 6% to £17.5m. Adjusted profit before tax was up 3% at £12.4m (2022: £12.0m).

Shares jump

Recently, The Neg reported Foxtons has seen its shares jump more than 50% in six months despite a slump in sales.

The London agency’s share price is up to 57p from 37p last August, and has leapt 6% in the last month alone.

Foxtons reclaimed its position as London’s leading estate agency.”

Guy Gittins, Foxtons CEO (main picture), says: “We have restored Foxtons’ competitive advantages by investing in core capabilities, growing fee earners and reinvigorating our culture and this has been achieved ahead of schedule.

“As a result, Foxtons was the UK’s fastest growing large lettings and sales agency brand in the UK in 2023 and reclaimed its position as London’s leading estate agency,” he says.

“Our strategy to deliver growth through sales market cycles by delivering lettings growth is working, [producing] resilient earnings for the year despite a weak sales market and the investment we made in fee earners.

“We are on track against our medium-term target of delivering £25m to £30m of adjusted operating profit, through organic and acquisitive growth and supported by improving market conditions.”