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 the 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.
Real Estate |
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Real Estate |
Update
Real Estate |
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Real Estate |
Update
Chris Hough
CFO
Guy Gittins
CEO
Nigel Rich
Chairman
Forecast net debt (£m)
3.6
Forecast gearing ratio (%)
3
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (6.4) | 16.0 | 35.9 |
Relative | (9.3) | 13.1 | 27.0 |
52 week high/low | 60.1p/34.3p |
The new strategic vision set out by the CEO is gaining significant momentum, driven by investment in staff and in best-in-class bespoke IT and data platforms, and implies that medium-term targets are now coming into focus. Market share is being gained in all divisions, which is likely to be boosted if the sales market stabilises in 2024. We have modestly raised forecasts and our valuation to 132p/share and believe that if interest rates stabilise or ease further, there are upside risks to our forecasts.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 140.3 | 27.8 | 13.7 | 3.00 | 17.6 | 10.8 |
2023A | 147.1 | 30.0 | 15.2 | 2.88 | 18.3 | 13.7 |
2024E | 157.6 | 35.0 | 19.4 | 3.68 | 14.3 | 8.0 |
2025E | 166.3 | 37.7 | 22.5 | 4.45 | 11.8 | 7.0 |