Foxtons Group (LON:FOXT) Releases Earnings Results

Key Points

• H1 performance weakened: Revenue fell 3% to £84.2 million and adjusted operating profit dropped 29% to £8.9 million, driven by a 13% decline in Sales revenue and £3 million of Lettings reversals following the Renters’ Rights Act.
• Lettings showed resilience: Underlying like-for-like Lettings revenue rose £1.9 million, supported by higher property-management penetration, 17% growth in ancillary products, and continued expansion in Build to Rent.
• Outlook remains mixed: Foxtons maintained its 2026 adjusted operating-profit guidance of £17 million–£19 million, while weak sales activity led to £3 million in annualized cost savings and operational restructuring.

Foxtons Group (LON:FOXT - Get Free Report) announced its quarterly earnings results on Thursday. The company reported GBX 1.80 EPS for the quarter, Digital Look Earnings reports. Foxtons Group had a return on equity of 8.96% and a net margin of 7.45%.

Here are the key takeaways from Foxtons Group's conference call:

• Neutral Sentiment: H1 revenue fell 3% to £84.2 million and adjusted operating profit declined 29% to £8.9 million, reflecting a 13% drop in Sales revenue and £3 million of Lettings revenue reversals from tenant-led terminations after the Renters’ Rights Act took effect.
• Positive Sentiment: Lettings revenue was flat despite the RRA disruption, with underlying like-for-like revenue up £1.9 million, property-management penetration rising 10%, ancillary-products revenue increasing 17%, and Build to Rent continuing to grow.
• Positive Sentiment: Foxtons expects the RRA to create medium-term growth opportunities as regulatory complexity drives landlords toward professional management, while strong tenant demand—averaging 17 renters per property—continues to exceed constrained supply.
• Negative Sentiment: The Sales market remains weak, with London exchange volumes down 13% and transaction volumes down 11%; management said current sales-agreed levels indicate that a meaningful recovery is unlikely in the near term, prompting £3 million of annualized Sales cost savings and operational restructuring.
• Neutral Sentiment: Management maintained its 2026 adjusted operating-profit guidance of £17 million–£19 million, weighted toward the second half, while net debt rose to £28.4 million after acquisitions, shareholder returns, and working-capital investment linked to annual landlord billing.

Foxtons Group Price Performance

Foxtons Group stock traded down GBX 0.10 during trading hours on Thursday, hitting GBX 39.60. The stock had a trading volume of 757,819 shares, compared to its average volume of 527,550. Foxtons Group has a 1-year low of GBX 31.70 and a 1-year high of GBX 62. The stock has a market capitalization of £117.11 million, a price-to-earnings ratio of 9.43, a PEG ratio of 0.83 and a beta of 1.04. The stock's fifty day moving average is GBX 44.03 and its two-hundred day moving average is GBX 46.28. The company has a debt-to-equity ratio of 43.05, a current ratio of 3.92 and a quick ratio of 0.90.

About Foxtons Group

Foxtons Group plc, an estate agency, provides services to the residential property market in the United Kingdom. The company operates through three segments: Lettings, Sales, and Financial Services. The Lettings segment engages in letting and management of residential properties. The Sales segment sells residential properties. The Financial Services segment offers mortgages and related products. Foxtons Group plc was founded in 1981 and is headquartered in London, the United Kingdom.

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