Foxtons Group (LSE: FOXT)

Currency in GBP

Last close As at 26/01/2023

GBP0.38

−0.45 (−1.17%)

Market capitalisation

GBP117m

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

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.

Sector

Real Estate

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Chris Hough

    CFO

  • Guy Gittins

    CEO

  • Nigel Rich

    Chairman

Balance Sheet

Forecast net cash (£m)

15.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 26.7 36.9 (7.3)
Relative 21.9 23.9 (9.6)
52 week high/low 46.7p/27.4p

Financials

Foxtons Group’s core London market was robust throughout 2021 and the FY results highlighted the recovery, the contribution from recent acquisitions and the momentum carried over into 2022. Focus on M&A of lettings books and Build to Rent growth are likely to drive longer-term growth. Q322 trading was good across all three business lines. We raised our FY22 forecasts but retained estimates further out given the uncertainty and retained our 128p/share valuation. Foxtons acquired Gordon and Co and Stones on 26 May adding c 2,500 tenancies. It then appointed Guy Gittings from Chestertons as CEO from 5 September.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2020A 93.6 15.7 1.6 (0.08) N/A 27.7
2021A 126.5 25.1 10.0 (0.52) N/A 18.7
2022E 135.3 28.7 14.6 3.765 10.1 8.4
2023E 137.1 28.1 15.0 3.875 9.8 7.9

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free