Foxtons Group Plc · LSE:FOXT
Foxtons — Investor Day (June 2025)
70 slides from Foxtons's investor day presentation, Jun 4, 2025
Slide 1: Delivering the next stage of growth
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Slide 2: Agenda
Agenda Foxtons Group plc Capital Markets Event June 2025 2
Slide 3: Capital Markets Event June 2025
Foxtons Group plc Capital Markets Event June 2025 3
Slide 4: Executive summary
Executive summary • On track to meet the £28m–£33m medium-term adjusted operating profit target we outlined in March 2023. • Delivery driven by platform-led growth across a reinvigorated business with a clear focus on our purpose - to get the right deal done for London’s property owners. • The Foxto
Slide 5: Foxtons: the platform for growth
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Slide 6: Foxtons: the platform for growth
Foxtons: the platform for growth Adjusted operating profit Lettings market share (1) (£m) +38% +120% (vs. 2021) 6.0% 6.2% 5.2% 4.5% 2021 2022 2023 2024 (2) Sales market share 21.6 +40% (vs. 2021) 15.0 15.7 5.0% 9.8 4.1% 3.5% 3.4% 2021 2022 2023 2024 2021 2022 2023 2024 1) Calculated as Foxtons’ shar
Slide 7: Foxtons: the platform for growth
Foxtons: the platform for growth Foxtons Group plc Capital Markets Event June 2025 7
Slide 8: Foxtons: the platform for growth
Foxtons: the platform for growth • • • • • • • • • • Foxtons Group plc Capital Markets Event June 2025 8
Slide 9: Foxtons: the platform for growth
Foxtons: the platform for growth MARKET LEADERSHIP CUSTOMER SERVICE PRODUCTIVITY & BIG DATA SCALABILITY #1 (1) 20+ UK lettings brand (2) 4.5/5 +18% Years of data capture London lettings and sales Google Review score (5) Revenue per employee vs. London competitors (5) 1.6bn #1 (1) Data points UK esta
Slide 10: Foxtons: the platform for growth
Foxtons: the platform for growth Profit growth underpinned by portfolio of non- Underpins profit growth through sales market cycle (1) cyclical and recurring revenues (£m) Adj. operating profit (£m) and London sales market volumes (2) Adj. operating profit (£m) 21.6 % non-cyclical 61% 65% 72% 67% an
Slide 11: Foxtons: the platform for growth / £64.2m acquisitions
Foxtons: the platform for growth 11 / £64.2m Acquisitions since 2020. £64.2m total spend to date. 2.9x Average EBITDA multiples paid (after synergies). 26% 54% Return on invested capital Average EBITDA margin (after synergies). Pipeline of opportunities In highly fragmented sector. EBITDA multiple i
Slide 12: Foxtons: the platform for growth
Foxtons: the platform for growth Lettings organic growth Group revenue growth £240m Revenue Lettings acquisitions Group profit growth £50m Adjusted operating profit Sales growth Group margin growth 20% Adjusted operating profit margin Group cash generation 60%-70% Net free cash flow conversion Finan
Slide 13: Our markets and expansion opportunities
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Slide 14: Our markets and expansion opportunities
Our markets and expansion opportunities Impact on Tailwind Forecast Impact Foxtons businesses Population growth Forecast population growth Demand growth Housing shortage 4.3m housing shortage Demand and price underpin House building +1.3m homes by 2030 Transaction volume growth House and rental pric
Slide 15: Our markets and expansion opportunities
Our markets and expansion opportunities Impact on Tailwind Forecast Impact Foxtons businesses Improving – FCA “responsible risk Mortgage availability taking” Transaction volume growth Forecast to decrease over the Interest rates medium-term Transaction volume growth Estate agency sector Highly fragm
Slide 16: Our markets and expansion opportunities
Our markets and expansion opportunities Total commission value of London residential property market Highly fragmented sector presents organic and inorganic growth opportunities (1) (2) Split by lettings, Sales and Financial Services Segmentation of London lettings market by agent market share rank:
Slide 17: Our markets and expansion opportunities
Our markets and expansion opportunities Buy, build and bolt-on strategy in commuter markets: London commuter markets attractiveness: • Connectivity with London. • Customer flows from London to commuter markets. • High level of agent fragmentation and consolidation opportunity. → Commuter markets inc
Slide 18: Our markets and expansion opportunities
Our markets and expansion opportunities GROWTH COMMUTER LONDON TODAY FUTURE TAM TAILWINDS MARKETS £2.0bn £3.5bn +£0.4bn +£1.1bn Existing markets Existing New markets market growth Inflation-linked Lettings consolidation Significant Organic revenue growth through market share gains revenues and drive
Slide 19: Powering growth through technology and data
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Slide 20: Powering growth through technology and data
Powering growth through technology and data • Complex B2C sector and processes. 1 Leading tech stack • Proprietary tech stack (CRM and ERP) and enterprise level data infrastructure. • Transforming to becoming a data-led company. 2 Data-led business • Leveraging Leverage over over 2020years years ofo
Slide 21: Powering growth through technology and data
Powering growth through technology and data Complex B2C processes and fast paced market backdrop How we solve the problem with our technology stack • Bespoke CRM and ERP. • Powers all Foxtons operations. Property Property KYC and AML EPC checks • Optimised workflows built to valuation instruction ch
Slide 22: Powering growth through technology and data
Powering growth through technology and data • Unified, automated marketing across all channels. Marketing and • Smart lead scoring and routing. lead generation • ML-enhanced targeting and prospecting. BOS • Real-time engagement tools. • Optimised workflows across the Lettings and Sales processes. Es
Slide 23: Powering growth through technology and data
Powering growth through technology and data DATA DATA CULTURE INTELLIGENT CRM AS A AI DEPLOYMENT INFRASTRUCTURE ANALYTICS REVENUE ENGINE Scalable, cloud- Real-time KPIs Models to boost Predictive analytics Continuous learning native platform embedded across productivity and in daily workflows. and s
Slide 24: Powering growth through technology and data
Powering growth through technology and data AI-driven predictive scoring to identify potential 50% 1. AI-driven propensity modelling reduction in the number of calls properties coming to the market. required to create a valuation. 25% 2. Real time touting engine Targets prospects in real-time to dri
Slide 25: Customer experience and lifetime value
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Slide 26: Customer experience and lifetime value
Customer experience and lifetime value 1 Customer centric 2 Technology to drive 3 Capturing customer customer experience lifetime value (CLV) Our vision: best in class customer excellence Foxtons Group plc Capital Markets Event June 2025 26
Slide 27: Customer experience and lifetime value
Customer experience and lifetime value Historic strategy > Customer centric strategy Customer value Transaction focussed: value of a customer today. > Recurring: value of customers over the long-term. Mindset “Do a deal and move on to the next.” > “The best results for the customer, with the best se
Slide 28: Customer experience and lifetime value
Customer experience and lifetime value Voice of the • Real time feedback systems through the customer journey. BOS • Employee-level service delivery tracking. 19 customer • Feedback-driven process reengineering. NPS AI-driven • Using natural language processing and machine learning to Data platform
Slide 29: Our People
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Slide 30: Our People
Our People Estate agency is a Limited further Continuing to drive 1 people business, 2 headcount investment 3 fee earner retention and they are critical required to deliver underpins growth to our success medium-term growth. plan. Creating the culture that delivers the next level of growth Foxtons G
Slide 31: Our People: Employee Value Proposition
Our People Employee Value Proposition 1. People are central to Single and company-wide mission, strategy Foxtons’ success and core to and set of values. the Group’s strategy. 2. Supports attraction, High-performing, goal orientated sales culture. recruitment and retention of the best talent. Continu
Slide 32: Our People
Our People Key areas of focus since 2022 Evaluating and evolving our People and Culture 2022 1. People turn-around initiated. 2. Rebuilt fee earner headcount. Our near-term areas of focus 3. Overhauled learning and development. 4. Launched new company purpose, mission and Further embedding our compa
Slide 33: Our People
Our People (1)(2) Employee engagement score (1)(2) 2024 employee engagement survey highlights Foxtons UK average vs. UK 69% I would recommend Foxtons as a great UK 65% place to work. 81% 75% +6% +400 bps average vs. UK I am proud to work for Foxtons. 79% 76% +3% I believe that Foxtons values diversi
Slide 34: Our People
Our People Fee earner retention rate Revenue per fee earner (%) +9% (£000s) Headcount +12% (vs. 2022) investment (vs. 2021) +68% 75 76 188 191 73 170 177 70 (1) 2022 2023 2024 Q1 25 2021 2022 2023 2024 Improving retention and productivity are fundamental to delivering our medium-term growth plan Fox
Slide 35: Foxtons Lettings
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Slide 36: Foxtons Lettings
Foxtons Lettings Regulation driving Organic growth: Value accretive 1 the importance of 2 3 “our growth acquisitions agents formula” Growing our portfolio of non-cyclical and recurring earnings. Foxtons Group plc Capital Markets Event June 2025 36
Slide 37: Foxtons Lettings
Foxtons Lettings Portfolio size Revenue (£m) 7% 106 13% 31,000 101.2 26,200 28,500 CAGR 86.9 CAGR 25,000 74.3 2021 2022 2023 2024 2021 2022 2023 2024 Adj. operating profit (Lettings segmental) Adj. operating profit margin (Lettings segmental) (£m) 27.2 27.2 37% 27% 1,100 26% 18.9 CAGR 22% bps 10.7 1
Slide 38: Annual commission value
Foxtons Lettings Commission value of London agency lettings 6.1% £2.3bn • Population growth. CAGR Growing • Property purchase affordability. £2.0bn demand • Wage growth. £1.8bn Annual commission value £1.5bn • YoY instruction levels broadly flat. £1.3bn • Improving conditions for private landlords:
Slide 39: Consolidation
Foxtons Lettings Increasing regulation creates opportunities for increased landlord penetration and agency consolidation • Property licensing. Increasing • Compliance and property standards. 13% 1,001 – 3,600 regulation • Renters Rights Bill (expected H2 2025). Consolidation TAM growth Direct 12% 50
Slide 40: Organic Lettings Growth
ORGANIC LETTINGS GROWTH
Slide 41: Foxtons Lettings
Foxtons Lettings Growing tenancy portfolio Margin growth Customer retention + Acquiring new customers + Value add services = Organic revenue and earnings growth • Results and service culture. • Data platform driving new • Value add Property • Property Management centre property leads. Management – i
Slide 42: Foxtons Lettings
Foxtons Lettings The problem: lettings funnel The solution Early progress capacity challenges Tenants > ✓ Digital-first demographic ✓ Enquiries ✓ Customised journeys Customised property rec engine +8% 480,000 ✓ Self-service viewing efficiency ✓ Transact fully digitally 24/7 Viewings > 140,000 Digita
Slide 43: Lettings Acquisitions
LETTINGS ACQUISITIONS
Slide 44: Foxtons Lettings: acquisition history and returns
Foxtons Lettings Acquisition history Acquisition returns Annual acquisition spend £15.9m £2.3m £64.2m 35% 33% £16.8m 27% 29% 26% 25% weighted 24% £10.3m average £14.3m Acquisition ROIC > WACC ROIC 16% 16% £4.7m Tenancies acquired 2.9k 0.6k 13.2k 2.8k Acquisition A B C D E F G H 2.4k 3.0k 54% EBITDA
Slide 45: Lettings acquisitions
Lettings acquisitions Bolt-on acquisitions Buy, build and bolt-on platforms New geographies in high value commuter Geography Existing Foxtons markets. > markets. Fold into existing Foxtons Retain physical footprint and power Operational > infrastructure and branch network. through Foxtons Operating
Slide 46: Lettings acquisitions
Lettings acquisitions STRATEGIC FIT QUALITY OF EARNINGS GEOGRAPHY Market positioning, fee levels High levels of non-cyclical Strengthens existing markets and quality of business. and recurring earnings. or access to new ones. Track record: 54% EBITDA margin 2.9x EBITDA multiple 26% ROIC VALUATION DI
Slide 47: Lettings acquisitions
Lettings acquisitions Significant runway exists for further acquisitions Share of lettings market (2024) • Acquisition opportunities across agency sizes. • Builds on #1 lettings position. London • Operating Platform drives synergies. • Well established playbook for driving returns. 66% 64% • Buy, bu
Slide 48: Foxtons Sales
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Slide 49: Foxtons Sales
Foxtons Sales In the next Driving growth: Supporting Group 1 2 3 market cycle “growth formula” value creation Returning the business to profitability Foxtons Group plc Capital Markets Event June 2025 49
Slide 50: Foxtons Sales: annual sales transactions
Foxtons Sales London sales market volumes are recovering from cyclical lows Growth tailwinds will help unlock pent-up demand 130,000 120,000 Population growth drives demand for housing. 110,000 Long run average 100,000 Annual sales transactions 90,000 London property as a safe haven asset class. 80,
Slide 51: Foxtons Sales
Foxtons Sales Sales market share (1) London market distribution and Foxtons’ share by price point (2) +40% 6.4% 4.0% 2.2% 1.4% 43% 43% 5.0% % total market volume 4.1% Foxtons market share 3.5% 3.4% 11% 3% 2021 2022 2023 2024 £0m-£0.75m £0.75m-£1.5m £1.5m-£3m £3m+ (Volume) (Mid) (Prime) (Super Prime)
Slide 52: Foxtons Sales
Foxtons Sales Driving market share Margin growth Property instructions + Conversion + Productivity and fee = Revenue and earnings growth Driving share of instructions: Converting instructions to deals: • Fee earner productivity. • Powerful AI-driven prospecting • Growing fee earner headcount. platfo
Slide 53: Foxtons Sales
Foxtons Sales Market segmentation Market positioning Growth Volume and Mid markets • Number #1 agent. • Engine for Sales break-even. (up to £1.5m) • Fee premium (2.5%). • Capitalise on market recovery. • Reputation for results. • Expand into commuter markets. New Homes specialist • Largest New Homes
Slide 54: Financial Services
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Slide 55: Financial Services
Financial Services Operational Significant potential 1 Strong market 2 3 improvements from maximising fundamentals driving growth the opportunity Foundations in place to create a materially larger business Foxtons Group plc Capital Markets Event June 2025 55
Slide 56: Mortgage rates normalising towards 2010-2019 average
Financial Services Mortgage rates normalising towards 2010-2019 average (1) Best buy mortgage rates (60% LTV, 2 year fixed) Highly resilient sector: over 67% of lending is non-cyclical and recurring refinance related. 6.5% 6.0% Mortgage rates returning towards 2010-2019 average levels, and 5.5% Pre-
Slide 57: Financial Services mortgage
Financial Services (1) Alexander Hall volumes and gross UK lending 5,500 £350bn • Growing broker headcount. • Stand-alone marketing function created. Financial Services mortgage 5,000 £300bn People Gross UK Lending £250bn • New compensation packages to drive staff retention. 4,500 £200bn volumes 4,0
Slide 58: Financial Services
Financial Services The opportunity size is large A complimentary model will support enhanced lead utilisation Foxtons Annual opportunity Referral opportunity is underutilised: Buyers • Current referrals focus mainly on new buyers. 120,000 • Opportunity to grow referrals from sellers and high-value l
Slide 59: Financial plan: value creation
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Slide 60: Financial plan: value creation
Financial plan: value creation Revenue Adj. operating profit (£m) (£m) 163.9 9% 21.6 30% 140.3 147.1 CAGR CAGR 126.5 15 15.7 9.8 2021 2022 2023 2024 2021 2022 2023 2024 Adj. operating profit margin Adj. EPS (1) (pps) 13.2% +550 5.0 31% 10.7% 10.7% bps 3.3 3.4 CAGR 7.7% 2.2 2021 2022 2023 2024 2021 2
Slide 61: Financial plan: value creation
Financial plan: value creation 1 Structural market tailwinds 130% earnings growth over the medium-term 2 Non-cyclical and recurring earnings Resilient, stable, and 3 Operating Platform drives organic growth predictable earnings SHAREHOLDER 4 Excellent acquisition returns and runway VALUE Progressive
Slide 62: Financial plan: value creation
Financial plan: value creation Revenue Adj. operating profit (£m) +46% (£m) +130% 240 50 147.1 163.9 126.5 140.3 21.6 9.8 15 15.7 2021 2022 2023 2024 Medium-term 2021 2022 2023 2024 Medium-term Adj. operating profit margin Net free cash flow +1,500 – +680 bps conversion 2,500 bps 60% - 70% 20% 67% 5
Slide 63: Adjusted operating profit walk - £50m base case
Financial plan: value creation Adjusted operating profit walk - £50m base case with further upside opportunity Key assumptions and drivers • Inflation-linked revenue. Lettings • Driving organic growth through customer retention, new £50m organic customer attraction and sell-through of value-add serv
Slide 64: Operating model and operating expense ratio
Financial plan: value creation Operating model and organisational and process Operating expense ratio reduction drives margin growth optimisation supports margin protection and expansion Operating expense ratio (1) 92% Scaling and Inflation linked Improving unit 1,200 bps operating revenues economic
Slide 65: Capital allocation priorities
Financial plan: value creation 1. Organic growth Invest in strategically important growth drivers. 2. Accretive acquisition 20% total ROIC hurdle rate. opportunities Long-term growth. 3. Progressive dividend Reliable and growing dividend. Strong cover. Shareholder returns. 4. Additional shareholder
Slide 66: Financial plan: value creation
Financial plan: value creation • Strong cash conversion and profitability underpin disciplined capital allocation. • Acquisition programme funded through net free cash flow and £30m RCF (expandable to £40m). • Net debt to EBITDA ratio expected to remain below 1.0x by December 2025, after assumed c.£
Slide 67: Summary
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Slide 68: Executive summary
Executive summary • On track to meet the £28m–£33m medium-term adjusted operating profit target we outlined in March 2023. • Delivery driven by platform-led growth across a reinvigorated business with a clear focus on our purpose - to get the right deal done for London’s property owners. • The Foxto
Slide 69: Forward-looking statements
This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “m
Slide 70: Further information and contact
Further information: www.foxtonsgroup.co.uk Contact: investor@foxtonsgroup.co.uk +44 (0) 207 893 6261 Foxtons Group plc Capital Markets Event June 2025 70