Last close As at 05/08/2026
GBP0.37
▲ −1.70 (−4.39%)
Market capitalisation
GBP110m
Research: Real Estate
Foxtons Group’s Q1 revenue grew by 9%, supported by growth in all three divisions as the strategic initiatives continue to gain significant momentum, driven by investment in staff, best-in-class bespoke IT and data platforms. This implies that Foxtons’ medium-term targets are now coming into focus. Market share is being gained in all divisions, which puts Foxtons in a good position as the sales market stabilises. We maintain our valuation of 132p/share and believe that if interest rates stabilise or ease further, there are upside risks to our forecasts.
Foxtons Group |
FY24 underpinned by market share gains |
Q1 trading update |
Real estate |
18 April 2024 |
Share price performance
Business description
Analyst
Foxtons Group is a research client of Edison Investment Research Limited |
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Foxtons Group’s Q1 revenue grew by 9%, supported by growth in all three divisions as the strategic initiatives continue to gain significant momentum, driven by investment in staff, best-in-class bespoke IT and data platforms. This implies that Foxtons’ medium-term targets are now coming into focus. Market share is being gained in all divisions, which puts Foxtons in a good position as the sales market stabilises. We maintain our valuation of 132p/share and believe that if interest rates stabilise or ease further, there are upside risks to our forecasts.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
140.3 |
13.7 |
3.0 |
0.9 |
17.4 |
1.7 |
12/23 |
147.1 |
15.2 |
2.9 |
0.9 |
18.0 |
1.7 |
12/24e |
157.6 |
19.4 |
3.7 |
1.3 |
14.1 |
2.5 |
12/25e |
166.3 |
22.5 |
4.4 |
1.6 |
11.7 |
3.0 |
Note: *PBT is normalised, excluding amortisation of acquired intangibles, exceptional items discontinued business and share-based payments. EPS is similar but after charging for share-based payments and excluding deferred tax re-measurement attributable to the corporate tax charge (ie diluted company definition).
Q1 revenue grew by 9% (or £2.9m) to £35.7m, with robust growth recorded in all three divisions. The group is trading in line with management’s full-year expectations and making solid progress towards achieving its medium-term adjusted operating profit target.
Lettings revenue increased by c 5% (or £1.2m) to £24.0m, principally driven by annualising the two 2023 acquisitions, supported by like-for-like revenue that was ‘broadly’ flat. However, revenue quality continues to improve, driven by the decision to lengthen the term of tenancies. As previously highlighted by the company, the supply and demand dynamics of the rental market have normalised and rental prices have stabilised.
In Sales, revenue grew by 17% (or £1.4m) to £9.5m as operational turnaround continues to drive the market share growth of transactions. Foxtons has now gained market share in four of the last five quarters.
Foxtons’ agreed sales were 31% higher by volume in the quarter than a year ago, with the under-offer pipeline at the end of the period 34% higher than last year and 12% higher than 2022, at the highest value since the 2016 Brexit vote. Again, we believe Foxtons is outpacing the market and taking share. The under-offer pipeline is expected to support further revenue growth in Q2 as mortgage availability and rates have stabilised and the market has good levels of available stock.
In Financial Services, revenue increased by 16% (or £0.3m) to £2.3m as operational upgrades, including improvements in adviser productivity, and cross-selling activity led to higher mortgage volumes.
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Research: Financials
Manx Financial Group (Manx) posted record PBT of £7m, a 35% increase year-on-year. Manx benefited from strong volumes, a full year contribution from Payment Assist Limited (PAL) and a £1.9m gain on debt securities, which offset funding cost pressures from higher average interest rates. Alongside a 24% increase in lending to £362.7m, it maintained robust credit quality, with its cost of risk (CoR) decreasing by 20bp y-o-y to 1.3%. As a result, the group delivered a strong return on average equity (RoAE) of 16.4%, 50bp higher than FY22. In line with its 10% dividend payout policy, the group proposed a dividend of 0.4551p/share, up 21% on FY22. The approval of a UK banking licence in October is a major milestone for Manx to continue to pursue its growth strategy.