**Summary of Foxtons Group PLC Interim Results for H1 2025**
Foxtons Group PLC reported strong financial performance for the first half of 2025, marked by a 31% increase in adjusted operating profit to £12.3 million, driven by a 10% rise in revenue to £86.1 million. This growth reflects the companys successful execution of its strategic plan, with notable contributions from recent acquisitions and organic growth in lettings and sales.
**Financial Highlights**
**Revenue Growth** Total revenue increased by 10% to £86.1 million, with lettings revenue up 4%, sales revenue up 25%, and financial services revenue flat.
**Profitability** Adjusted operating profit rose 31% to £12.3 million, and profit before tax increased by 35% to £10.2 million. Adjusted EBITDA grew by 32% to £13.8 million.
**Margins** Adjusted operating profit margin improved by 230 basis points to 14.3%, driven by higher-margin property management revenues and cost control initiatives.
**Cash Flow** Net free cash flow improved significantly to £3.6 million from a £0.9 million outflow in H1 2024, reflecting increased profitability and better cash conversion.
**Dividend** The interim dividend was increased by 9% to 0.24p per share, in line with the companys progressive dividend policy.
**Operational and Strategic Highlights**
**Lettings** Continued market share growth in London, with a 9% increase in value-added property management uptake. Recent acquisitions, including Marshall Vizard, are performing well and contributing to revenue growth.
**Sales** Market share in core addressable markets remained robust at 5%, benefiting from increased transaction volumes in Q1 due to the stamp duty deadline. Commuter market acquisitions added £2.2 million in incremental sales revenue.
**Cost Control** Negotiated an early exit from the Chiswick Park HQ lease, expected to unlock significant savings from January 2026.
**Technology and Customer Experience** Enhanced the operating platform with real-time feedback and AI-driven sentiment analysis systems. Launched a re-engineered consumer website, boosting digital engagement.
**Strategic Growth** Outlined new medium-term targets at the June 2025 Capital Markets Event, aiming to more than double adjusted operating profit to £50 million, driven by platform enhancements, operational efficiency, and acquisitions.
**Outlook**
**Lettings** Expected to remain stable with strong tenant demand, reasonable stock levels, and inflation-linked rent increases.
**Sales** Growth is anticipated to be more subdued due to higher borrowing costs, weaker consumer confidence, and economic uncertainties.
**Financial Services** Refinance activity is expected to strengthen in H2, while new purchase mortgages will reflect sales market trends.
**Full-Year Expectations** Management remains confident in achieving full-year adjusted operating profit targets, supported by the resilience of lettings revenues and continued strategic execution.
**CEO Commentary**
Guy Gittins highlighted the strong start to the year, emphasizing the resilience of lettings revenues and the benefits of strategic acquisitions. He acknowledged the challenges in the sales market but expressed confidence in the companys ability to navigate these conditions and deliver on its growth strategy.
**Conclusion**
Foxtons Group PLC demonstrated robust financial and operational performance in H1 2025, underpinned by strategic acquisitions, technological advancements, and a focus on cost efficiency. Despite anticipated challenges in the sales market, the company remains well-positioned to achieve its medium-term growth targets, supported by a strong lettings business and a scalable operating platform.