Foxtons Group

LN: FOXT

Market Cap£166m

Last Close 51.5p

Foxtons Group is London’s leading and most widely recognised estate agency. It operates from a network of 57 inter-connected branches offering a range of residential related services which break down into three separate revenue streams; sales, lettings and mortgage broking.

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Investment summary

Foxtons Group’s core London market has been improving all year and the interim results highlight both the recovery and the contribution from recent acquisitions. Focus on M&A of lettings books, BTR growth and regional expansion are likely to drive growth longer term. Furthermore, the company announced a return to paying dividends in respect of the half year and given the strength of both trading and the balance sheet, revealed a £3m share buyback programme that should augment earnings. We retain our underlying assumptions but raise our valuation by 1p to 130p to reflect the share buyback.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 106.9 13.5 (1.9) (0.32) N/A N/A
2020A 93.6 15.7 1.6 (0.08) N/A N/A
2021E 130.1 22.0 8.1 0.08 643.8 N/A
2022E 137.7 25.5 12.5 3.31 15.6 N/A
Industry outlook

Foxtons is almost entirely focused on the London market where both the lettings and sales markets are recovering as London, and rest of the UK, head towards a ‘new normal’. Foxtons’ Greater London region contains 13% of the UK population, and by value accounts for 33% of sales and 38% of UK lettings.

Last updated on 21/09/2021
Content on Foxtons Group
Foxtons – Clear growth plans drive upside potential
Real Estate | Initiation | 29 June 2021
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (6.4) (9.7) 32.4
Relative* (5.1) (9.7) 6.5
52-week high/low 74.2p/32.2p
*% relative to local index
Key management
Nic Budden CEO
Richard Harris CFO