Foxtons Group has reported a 31% jump in adjusted operating profit for the first half of 2025 driven by a resilient lettings business, strategic acquisitions and disciplined cost control as the London-based estate agency continues to make headway on its growth strategy.
In interim results published last week, the estate agent said group revenues rose 10% to £86.1 million in the six months to 30 June while profit before tax climbed 35% to £10.2 million.
Adjusted EBITDA rose 32% to £13.8 million. The company credited the strong performance to the scalability of its platform, cost efficiency initiatives, and growth in higher-margin property management services.
“It’s been a strong start to the year, with revenue up 10% and adjusted operating profit growing 31%,” said chief executive Guy Gittins (main picture). “The Lettings business has continued to perform well, providing steady, recurring revenues which underpin our growth.”
PROPERTY MANAGEMENT
Indeed, lettings accounted for 65% of total group revenues during the period, with revenues from the division up 4%.
The company highlighted a 9% increase in uptake of value-added property management services and continued market share gains as London’s top lettings brand. Meanwhile, Foxtons’ acquisition strategy – specifically the integration of Imagine Properties and Marshall Vizard – also bolstered lettings income and created local market leadership in parts of the commuter belt.
Sales revenue, by contrast, rose 25% year-on-year, buoyed by strong transaction volumes in Q1 as buyers moved ahead of the stamp duty deadline.
MUTED OUTLOOK
The company said it benefited from a rebuilt market share position, with core market share now sitting at 5%, ahead of its 4.5% target. However, the outlook for sales in H2 is more muted.
“We expect a more challenging second half for the sales market compared to the first,” said Gittins. “Weaker consumer confidence, concerns over the UK’s economic outlook and uncertainty ahead of the Autumn Statement are also weighing on demand.”
Financial services revenue was flat, with an uptick in new purchase mortgage activity offset by a delay in refinancing volumes, which Foxtons expects to rebound in the second half.
COST-SAVINGS
Importantly, profit growth outpaced revenue growth during the period, resulting in a 230 basis point improvement in adjusted operating profit margin to 14.3%.
The company also reported a return to positive net free cash flow of £3.6 million, from a £0.9 million outflow in the same period last year. An interim dividend of 0.24p per share was declared, up 9% year-on-year.
Foxtons also pressed ahead with cost-saving initiatives, including a planned exit from its Chiswick Park HQ lease, which is expected to unlock material savings from 2026.
UPGRADED TECHNOLOGY
Meanwhile, its investment in technology continued, with an upgraded consumer website and new AI-driven sentiment tracking tools enhancing service delivery and lead generation.
At its June Capital Markets Event, the company set out ambitious medium-term goals, including a plan to more than double adjusted operating profit to £50 million.
Gittins said the target is supported by a “clear and scalable” strategy focused on platform enhancements, operational efficiency, and further lettings-led acquisitions.
“Despite the wider macroeconomic uncertainty, the Group’s strong financial profile is underpinned by stable and recurring earnings from Lettings and gives us continued confidence in delivering our growth strategy,” Gittins added.
While the sales outlook is clouded by mortgage rate stagnation and economic uncertainty, the steady performance of Foxtons’ lettings business, and its growing acquisition pipeline, position the group well for further earnings growth in the second half and beyond.
