Slide 1: Foxtons – Interim Results Presentation
Investor Presentation Foxtons – Interim Results Presentation For the six months ended 30 June 2014 0
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: Introduction
Introduction Garry Watts, Chairman
Slide 4: Highlights
Highlights Nic Budden, Chief Executive Officer
Slide 5: Highlights
Highlights • A robust set of results H1 Group Revenue (£m) +16.2% - Revenues up 16.2% to £72.8m and Adj. EBTIDA up 28.7% to £24.9m. 72.8 - EBITDA Margins up 330 bps to 34.3% (2013: 31.0%). 62.6 - Profit before tax up 57.1% to £23.1m (2013: £14.7m). 54.0 56.7 - Interim and special dividends of £12.8m
Slide 6: Financial Results
Financial Results Gerard Nieslony, Chief Financial Officer
Slide 7: Profit and loss: Strong growth
Profit and loss Strong growth Profit & loss 2014 H1 2013 H1 Variance % (£000) Revenue Sales 37,762 28,530 9,232 32.4% Strong sales market – volume and price driven Lettings 31,829 31,804 25 0.1% Flat lettings due to strength of sales market Mortgage broking 2,988 2,035 953 46.8% Strong mortgage mark
Slide 8: Key performance indicators: Strong growth in sales and mortgages
Key performance indicators Strong growth in sales and mortgages KPIs 2014 H1 2013 H1 % Revenue (£000) 72,757 62,601 16.2% Average number of branches 46.5 39.5 17.7% Income per branch held flat despite significant increase in Average total headcount 1,215 1,163 4.4% number of new branches Income per
Slide 9: Cash flow statement: Highly cash generative
Cash flow statement Highly cash generative £000 2014 H1 2013 H1 Adjusted EBITDA 24,947 19,388 Decrease in provisions (37) 2 Decrease/(increase) in receivables (2,433) (2,343) Minimal working capital requirements (Decrease)/increase in payables 1,370 2,367 Cash generated by operations 23,847 19,416 I
Slide 10: Balance sheet: Asset light business
Balance sheet Asset light business £000’s June 2014 June 2013 Non-current assets Goodwill 19,168 19,168 Other intangible assets 99,000 99,000 Low property, plant and equipment balance as Property, plant and equipment 23,801 21,043 properties are leased Deferred tax assets 747 724 142,716 139,935 Cur
Slide 11: Dividend: Interim and special dividend
Dividend Interim and special dividend • 2014 interim dividend - Interim and special dividends declared totalling 4.54p: - Interim dividend 1.77p - Special interim dividend 2.77p. - Total payable £12.8m - Payable 26 September 2014 (ex-dividend date 3 September 2014). 10
Slide 12: Expansion programme
Expansion programme Nic Budden, Chief Executive Officer
Slide 13: Expansion programme: Significant ongoing opportunity
Expansion programme Significant ongoing opportunity Branch expansion history • Successful track record with significant ongoing opportunity to 51 expand further within London at a rate of 5-10 branches per year. • 50 further new branch locations with similar economic potential identified. 44 • Focus
Slide 14: Expansion programme: New branch economics
Expansion programme New branch economics Cumulative cash (£m) 2.0 • Predictable branch costs lead to consistent financial returns across the portfolio: • Each cohort of new branches between 2010 and 2012 achieved positive cash flow within 6 months and broke even 1.5 within 19 months. Breakeven after
Slide 15: Market update and summary
Market update and summary Nic Budden, Chief Executive Officer
Slide 16: Market update: Volumes and prices
Market update Volumes and prices Annual London property sales transactions Average property sales price (£000) 170,000 550 2 London +16% 500 Jan-Apr ‘14 450 Eng & Wales 140,000 Average = 74% 400 ‘00-’06 67% Peak 350 Transactions Price (£000) average=100% to trough +9% p.a. -3% 110,000 300 250 200 80
Slide 17: Summary: Continue to deliver on our strategy
Summary Continue to deliver on our strategy Focus on markets ∙ London property market continues to offer disproportionate value with attractive ∙ Resilient sales prices fundamentals ∙ Valuable lettings market Centralised ∙ Centralised business model underpinned by innovative technology ∙ I