Slide 1: Foxtons – Preliminary Results Presentation
Foxtons – Preliminary Results Presentation For the year ended 31 December 2014 1
Slide 2: Disclaimer
Disclaimer 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”, “i
Slide 3: Performance summary
Performance summary Nic Budden, Chief Executive Officer
Slide 4: Group performance
Group performance • Year of contrasting halves ─ Very strong sales market in H1 2014 – reached highest level since 2008 Group Revenue (£m) ─ Sharp downturn in property sales market in H2 2014 ─ Market affected by political and economic uncertainty and mismatch of price 139.2 143.9 expectations betwe
Slide 5: Sales market performance
Sales market performance Monthly London property sales transactions 2014 : London property sales by value Lower stamp duty 16,000 102% 100% 50% 14,000 80% 40% 12,000 91% of both Foxtons and London 65% property sales transactions gain 10,000 30% 60% from reduced SDLT rate 8,000 40% 20% 6,000 Mansion
Slide 6: Sales performance
Sales performance Foxtons property sales units Foxtons property sales revenue (£m) 67.4 69.8 5,525 5,323 4,406 4,512 52.7 53.1 3,645 46.0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CAGR 9.9% Revenue CAGR 11.0% • Foxtons property sales revenue continues to be influenced by a cyclical market •
Slide 7: Lettings performance
Lettings performance Foxtons Lettings units (000’s) Foxtons Lettings revenue (£m) 20.9 66.4 67.4 19.2 20.5 59.9 63.1 17.5 18.9 52.9 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CAGR 4.5% Revenue CAGR 6.3% • Exceptionally strong property sales market during H1 2014 led to downward pressure on le
Slide 8: Mortgage performance
Mortgage performance Foxtons Mortgage Broking units Foxtons Mortgage Broking revenue (£m) 3,154 6.3 2,556 4.9 2,004 1,858 1,938 4.0 3.7 3.5 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CAGR +12.0% Revenue CAGR 12.2% • Mortgage approval levels in London remain well below the 1996-2006 average •
Slide 9: Financial Results
Financial Results Gerard Nieslony, Chief Financial Officer
Slide 10: Profit and loss: Continued high margins
Profit and loss Continued high margins Story of contrasting halves with H1 growth of 32.4% in contrast to H2 P&L - £000’s 2014 2013 % which fell by 17.5% reflecting the downturn of the London property sales market Sales 69,833 67,416 3.6% Lettings remained flat reflecting the strength of the sales m
Slide 11: Key performance indicators: Revenue analysis by division
Key performance indicators Revenue analysis by division Revenue by division - % of total 2014 2013 (%) 4% 3% 3% 4% 4% Sales Revenue (£000’s) 69,833 67,416 3.6% Volume (Units) 5,323 5,525 (3.7%) 51% 52% 53% 48% 47% Average revenue (£) 13,119 12,202 7.5% Lettings Revenue (£000’s) 67,387 66,360 1.5% Vo
Slide 12: Cash flow: Highly cash generative
Cash flow Highly cash generative 2014 2013 Adjusted operating cash Strong EBITDA generation Adjusted EBITDA 46,200 49,632 Movement in working capital (302) (1,444) Minimal working capital requirements Net capital spend (6,816) (6,933) Low capital spend relative to cash generation Includes cost of op
Slide 13: Dividend
Dividend • 2014 proposed final and special dividend Final dividend 3.17p Special dividend 1.99p Total dividend 5.16p Total payable £14.5m Payable 29 May 2015 (record date 1 May 2015) • Dividends in respect of the 2014 financial year total 9.70p per share (£27.3m) • Since IPO (September 2013) and inc
Slide 14: New branch performance
New branch performance Cumulative cash (£m) New branch cohorts 2010-2014 (27 branches in total) • Consistent performance of new branches opened since 3.0 2010 2.5 • Each cohort of new branches between 2010 and 2012 achieved positive cash flow within 6 to 7 months and broke even within 19 months 2.0
Slide 15: Summary and outlook
Summary and outlook Nic Budden, Chief Executive Officer
Slide 16: Summary and outlook
Summary and outlook Summary • Long term fundamentals of the London property market remains strong • Solid financial performance in a year of two contrasting halves • Business model continues to deliver strong margins • Balanced business model provides stability • Branch expansion performing as expec
Slide 17: Questions?
Foxtons | Questions?
Slide 18: Appendix
| Appendix
Slide 19: Attractive market fundamentals
Attractive market fundamentals Focussed on London property markets which are disproportionately valuable • High levels of mobility and a young population create rapid transaction velocity • Strong population growth, foreign buyers, planning restrictions and limited supply create systemic excess prop
Slide 20: Business model
Business model Significant and sustainable competitive advantage • Single brand - A powerful brand supported by 30 years of significant marketing expenditure - Leading property website receiving around 650,000 unique visitors each month - Distinctive branch design and branded Mini fleet reinforce hi
Slide 21: Expansion programme
Expansion programme Significant ongoing opportunity • Successful track record with significant ongoing opportunity to expand further within London at a rate of 5-10 branches per year Branch expansion history 51 • 50 further new branch locations with similar economic potential identified 44 • Focus w
Slide 22: Service excellence
Service excellence Premium service dedicated to maximising value for 8 til 8 38% Clients and substantiate our premium pricing 362 DAYS 45,700 EVENING & • Long track record of service leadership, responsible for selling PER YEAR VIEWINGS WEEKEND over £12.3bn of property over last five years EACH MONT
Slide 23: Balance sheet: Asset light business
Balance sheet Asset light business 2014 2013 Balance sheet £'000 £'000 Non-current assets Goodwill 19,168 19,168 Other intangible assets 99,000 99,000 Property, plant and equipment 24,067 21,337 Deferred tax assets 876 666 143,111 140,171 Current assets Receivables and prepayments 17,103 19,499 Cash