Slide 1: Foxtons Group plc Interim results presentation
Foxtons Group plc Interim results presentation For the period ended 30 June 2022
Slide 2: Important information
Important information 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”, “e
Slide 3: Agenda
Agenda 1. Strategic and market update Peter Rollings 2. Financial review Chris Hough 3. Summary and outlook Peter Rollings 4. Q&A 3
Slide 4: Strategic and market update
Strategic and market update Peter Rollings 4
Slide 5: Strategic update
Strategic update • Decisive action taken to further accelerate business reset and financial performance • Good financial and operational progress in H1: • Organic growth: investment in salesforce capacity, as well as returning to culture of sales intensity • Lettings acquisitions : integrated D&G le
Slide 6: Lettings market update
Lettings market update (1) (2) Ratio of renters to properties Average new tenancy weekly rental price 30 £550 FY 19 20 21 22 £525 25 £500 20 £475 £450 15 £425 10 £400 5 £375 £350 0 £325 Jun-22 Jan-19 Nov-19 Jan-20 Nov-20 Jan-21 Nov-21 Jan-22 Mar-19 Mar-20 Mar-22 May-19 Jul-19 Sep-19 May-20 Jul-20 Ma
Slide 7: Sales market update
Sales market update (1) (2) Quarterly sales exchange volumes Average time to exchange (days) 40,000 325 35,000 300 30,000 275 25,000 250 20,000 225 15,000 200 10,000 175 5,000 150 0 Jun-22 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 May-17 Sep-17 May-18 Sep-18 May-19 Sep-19 May-20 Sep-20 May-21 Sep-21
Slide 8: Financial review
Financial review Chris Hough 8
Slide 9: Financial highlights
Financial highlights Continue to deliver growth in H1 H1 22 H1 21 V% • Revenue and profit growth (1) Revenue £65.1m £63.4m +3% • Growth in recurring lettings revenue (2) Adj. operating profit £6.2m £5.4m +13% • Improved operating margin Adj. operating profit 9.5% 8.6% +90bps • Cost actions to suppor
Slide 10: Overview of segmental performance
Overview of segmental performance Vs. Adj. operating Vs. Revenue Margin H1 21 profit H1 21 Lettings £39.4m +£6.5m £7.3m +£5.8m 18% Sales £20.8m (£4.4m) (£0.7m) (£5.1m) (3%) Financial Services £4.8m (£0.4m) £0.8m (£0.2m) 17% Corporate costs - - (£1.2m) +£0.3m - Group £65.1m +£1.7m £6.2m +£0.8m 9.5% 1
Slide 11: Segmental performance: lettings
Segmental performance: lettings Organic revenue growth and contribution from D&G lettings portfolio delivering strong profits uplift H1 22 H1 21 V% Volume 9,110 10,026 (9%) • Lower volumes and higher rental prices reflecting low inventory market Revenue per transaction £4,330 £3,284 +32% Revenue £39
Slide 12: Segmental performance: sales
Segmental performance: sales Resilient performance despite tough prior year comparator H1 22 H1 21 V% Volume 1,528 1,865 (18%) • Tough prior year comparable reflecting pull- forward effect of 2021 stamp duty holiday Revenue per transaction £13,627 £13,532 +1% Revenue £20.8m £25.2m (17%) • Average pr
Slide 13: Segmental performance: financial services
Segmental performance: financial services Good growth in recurring remortgage revenues offset weaker new purchase volumes H1 22 H1 21 V% Volume 2,334 2,795 (16%) • Lower volumes driven by lower new purchase mortgages reflecting the sales market Revenue per transaction £2,056 £1,859 +11% • YoY growth
Slide 14: Adj. operating profit bridge
Adj. operating profit bridge H1 22 LFL adj. operating profit: £6.6m £3.0m annualised FY22 cost pressures: Employers NI Utilities inflation Business rates Wage inflation 14
Slide 15: High levels of cash generation supports investments and shareholder returns
High levels of cash generation supports investments and shareholder returns Operating cash to net free cash inflow conversion Uses of cash flow Opening cash £23.1m Net cash from operating activities: £9.6m Net free cash inflow £2.8m Acquisitions (£8.5m) (net of cash acquired) Disposal of D&G sales (
Slide 16: Clear capital allocation policy to deliver shareholder returns
Clear capital allocation policy to deliver shareholder returns • Investments in revenue generating areas Organic growth • Business operational requirements Acquisitions • Lettings portfolio acquisitions • Interim dividend of 0.2pps declared today Shareholder returns • Share buybacks 16
Slide 17: Financial summary
Financial summary • Organic revenue growth in recurring lettings revenue, sales and financial services tracking wider market conditions • Integrated D&G lettings and disposed of loss-making sales business to deliver good revenue and profit contribution • Two further lettings acquisitions completed i
Slide 18: Summary
Summary Peter Rollings 18
Slide 19: Summary and outlook
Summary and outlook Summary • Good progress against strategic and financial growth objectives • Strong business fundamentals; reduced HQ costs enabling investment in key revenue growth areas • Lettings acquisition strategy performing well, particularly in D&G lettings • Guy Gittins joins as CEO in S
Slide 20: Appendix
Appendix 1. Additional financial information
Slide 21: Additional financial information: income statement
1. Additional financial information: income statement From continuing operations £m H1 22 H1 21 % Revenue 65.1 63.4 +3% Direct operating costs (23.2) (23.9) +3% Contribution 41.9 39.4 +6% Margin 64% 62% +210bps Other operating costs (35.7) (34.0) Adj. operating profit 6.2 5.4 +13% Margin 10% 9% +90b
Slide 22: Reconciliation to H1 reported revenue and adj. operating profit
1. Additional financial information: reconciliation to H1 21 reported revenue and adj. operating profit £m H1 22 H1 21 Revenue from continuing operations 65.1 63.4 Revenue from discontinued operations 0.6 3.6 Total Group revenue 65.6 66.9 Adj. operating profit from continuing operations 6.2 5.4 Adj.
Slide 23: Additional financial information: balance sheet
1. Additional financial information: balance sheet £m Jun-22 Jun-21 Dec-21 Goodwill and intangibles 135.5 125.8 125.0 Property, plant & equipment 51.9 60.5 53.5 Cash 11.7 24.4 19.4 Investments 3.7 3.7 3.3 Net working capital 0.3 (1.0) 1.8 Deferred tax (26.1) (25.4) (24.8) Provisions and net contract
Slide 24: Additional financial information: earnings/(loss) per share
1. Additional financial information: earnings/(loss) per share Continuing operations Total Group £000s H1 22 H1 21 H1 22 H1 21 Profit / (loss) for the purposes of basic and diluted EPS 2,905 (3,667) 2,587 (3,881) Adjust for: Adjusted items (including associated taxation) 713 897 533 897 Deferred tax