Slide 1: Preliminary results presentation for the year ended 31 December 2021
Foxtons Group plc Preliminary results presentation For the year ended 31 December 2021
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. Highlights and performance update Nic Budden 2. Strategy update Nic Budden 3. Financial review Richard Harris 4. Summary and outlook Nic Budden 3
Slide 4: Highlights and performance update
Highlights and performance update Nic Budden 4
Slide 5: Group highlights: A good year of progress for Foxtons
Group highlights • Revenue of £126.5m (2020: £93.5m, 2019: £106.9m), 35% growth vs 2020 and 18% growth vs 2019 • Revenue and market share growth across all business areas A good year of • Operating profit of £8.9m (2020: £1.9m, 2019: (£0.7m)) progress for Foxtons (1) • High levels of cash generation
Slide 6: Sales highlights
Sales highlights Foxtons highlights: Monthly sales transaction volumes (indexed) (1) 400 Indexed (jan 21 = 100) • Sales revenue: £42.7m 350 SDLT relief 300 windows closed • Revenue growth: +51% YoY 250 200 • Average sales fee: 2.4% 150 100 50 • Good market share growth 0 Market dynamics: London Foxt
Slide 7: Lettings highlights
Lettings highlights Foxtons highlights: Size of Foxtons lettings portfolio 30,000 • Lettings revenue: £74.3m 27,500 Number of tenancies • Revenue growth: +30% YoY 25,000 • Lettings portfolio size: c.25,000 (+27% vs. 2019) 22,500 • Good growth from successful acquisition and integration of 4 20,000 l
Slide 8: Strategy update
Strategy update Nic Budden wat Mi are
Slide 9: Clear strategy to drive growth and shareholder returns
Clear strategy to drive growth and shareholder returns Core objectives Strategy • Increase market share in sales Organic revenue • Drive organic growth in lettings growth • New revenue channels and increased cross-selling • Identify and acquire high quality lettings portfolios Lettings portfolio • R
Slide 10: Delivering on strategy in 2021 and 2022
Delivering on strategy in 2021 and 2022 2021 progress 2022 priorities • Build on market share gains, supported through an • Revenue and market share growth in all segments investment in negotiator headcount Organic revenue • 12% organic growth in lettings • Investment in mortgage broking capacity gr
Slide 11: Financial review
Financial review Richard Harris 11
Slide 12: Income statement
Income statement From continuing operations 2021 vs. £m 2021 2020 2020 2019 Revenue 126.5 93.5 35% 106.9 • Organic revenue growth of 25% • D&G lettings contributed £10.0m of revenue and £3.7m Operating costs (102.4) (77.8) (32%) (93.4) operating profit Depreciation, amortisation & share • Cost base
Slide 13: Business performance: lettings
Business performance: lettings Resilient performance as volumes and rents grew through 2021 Continuing operations 2021 2020 2021 vs. 2020 2019 Tenancy portfolio growth Volume 22,091 18,595 19% 19,844 25,200 900 2,900 Revenue per transaction £3,365 £3,081 9% £3,313 1,600 19,800 Lettings revenue £74.3
Slide 14: Business performance: sales
Business performance: sales Strong growth through market recovery, market share gains and higher staff productivity Continuing operations 2021 2020 2021 vs. 2020 2019 Volume 3,122 2,034 53% 2,423 Revenue per transaction £13,668 £13,854 (1%) £13,463 Sales revenue £42.7m £28.2m 51% £32.6m Less: direct
Slide 15: Business performance: mortgage broking – Alexander Hall
Business performance: mortgage broking – Alexander Hall Growth from increased Foxtons cross-selling and more favourable market conditions Continuing operations 2021 2020 2021 vs. 2020 2019 Volume 4,991 4,361 14% 4,442 Revenue per transaction £1,895 £1,853 2% £1,921 Mortgage broking revenue £9.5m £8.
Slide 16: Cash flow
Cash flow Adj. operating profit to net free cash inflow conversion Uses of cash flow Opening cash £37.0m 1.7 Net free cash inflow £6.6m 16.1 Acquisition of Douglas & Gordon (£11.1m) (net of cash acquired) Prior year acquisitions (£0.4m) Investment in Boomin (£3.0m) Share buybacks (£5.7m) Dividends (
Slide 17: Looking ahead to 2022: cost and cash flow items
Looking ahead to 2022: cost and cash flow items • Inflation and other cost pressures already materialising, e.g. National Insurance increase from 1 April 2022 • These pressures are expected to be offset by a broad range of management actions, a significant proportion of which have already been deliv
Slide 18: Financial summary
Financial summary Good revenue growth in all business segments. When combined with the inherent operating leverage results in significant improvement in profitability Douglas & Gordon lettings contributed £10m revenue and £3.7m operating profit since acquisition in March 2021. Loss-making sales busi
Slide 19: Summary and outlook
Summary and outlook Nic Budden 19
Slide 20: Summary and outlook
Summary and outlook Summary • Business recovered well from Covid-19 to deliver revenue, profits and cash growth across all business segments • High levels of operating leverage and productivity delivered profits growth • Good progress made against core strategic objectives • Successful acquisition a
Slide 21: Appendix
Appendix 1. Additional financial information 2. Background to Foxtons
Slide 22: Additional financial information: balance sheet
1. Additional financial information: balance sheet Strong balance sheet provides operational flexibility Key movements: £m Dec-21 Dec-20 • Increase in goodwill reflects acquisition of Douglas & Gordon Goodwill and intangibles 125.0 115.0 Property, plant & equipment • Re-measurement of deferred tax b
Slide 23: Additional financial information: earnings/(loss) per share
1. Additional financial information: earnings/(loss) per share Dec-21 Dec-20 Loss for the purposes of basic and diluted eps (£1.3m) (£3.2m) Adjust for: Adjusted items (including associated taxation) £1.4m £0.9m Deferred tax remeasurement (due to UK corporate tax rate change) £6.1m £1.8m Adjusted ear
Slide 24: Additional financial information: discontinued operations
1. Additional financial information: discontinued operations Income statement Balance sheet £m 2021 £m Dec-21 Revenue 6.8 Intangible assets - Adj. operating loss (1.8) Property, plant & equipment 5.5 Adjusted items (3.2) Cash 3.7 Net finance cost (0.2) Investments 0.2 Loss before tax (5.2) Net worki
Slide 25: Background to Foxtons: unique operating model
2. Background to Foxtons: unique operating model Competitive advantages Key outcomes Premium customer service Brand and reach and customer results Technology and Customer loyalty and advocacy data science Sales and Business results service intensity 25
Slide 26: Background to Foxtons: strong foundation for growth
2. Background to Foxtons: strong foundation for growth (1) (2) (3) Leading brand Strong value proposition Sector leading service #1 8% 4% Brand awareness in London property Rental yield premium Sales price premium Customer loyalty Technology platform Data science 86% 77% Single 1.6bn Landlords All c
Slide 27: Background to Foxtons: single tech stack underpins operations
Aggregators 2. Background to Foxtons: Property information Single tech stack underpins Website optimisation operations Payment processing Telephone Cross-sell Branches Cyber security Web Chat Social Media BOS Paid search and SEO Compliance Email Performance CDP and management Data science My Foxtons
Slide 28: Background to Foxtons: market leadership through our people
2. Background to Foxtons: market leadership through our people Culture & Sales intensity Professionalism engagement 28