Foxtons Group Plc · LSE:FOXT
Foxtons — H1 2024 Earnings Presentation
24 slides from Foxtons's earnings presentation, Jul 30, 2024
Slide 1: Half Year Results Presentation
FOXTONS GROUP PLC HALF YEAR RESULTS PRESENTATION For the period ended 30 June 2024 30 July 2024
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 01 H1 2024 highlights 02 Market update 03 Progress against strategic priorities 04 Financial review 05 Operational update 06 Trading and outlook 07 Appendix 30 July 2024 Foxtons Group plc Half Year 2024 Results Presentation 3
Slide 4: H1 2024 Highlights
01 H1 2024 HIGHLIGHTS Guy Gittins, Chief Executive Officer Foxtons Group plc Half Year 2024 Results Presentation 4
Slide 5: Highlights
Highlights Double digit revenue and earnings growth as the Group continues to deliver on its turnaround plan. 1 Revenue growth (+11%) and adjusted operating profit growth (+24%) despite weak sales market. (1) 2 Reinforced positions as number 1 estate agent in London and largest lettings brand in the
Slide 6: Market Update
02 MARKET UPDATE Guy Gittins, Chief Executive Officer Foxtons Group plc Half Year 2024 Results Presentation 6
Slide 7: London lettings market update
London lettings market update London lettings market dynamics continuing to normalise. Supply and demand dynamics normalising with flat YoY rental prices. 200 £577 £573 £600 181 180 • London lettings market continuing to normalise with increased levels of 180 £517 164 rental stock and moderating ten
Slide 8: London sales market update
London sales market update H1 24 London exchanges in-line with H1 23 levels, with early signs of some recovery. (1) Flat London sales exchange volumes in H1 2024 80,000 H1 volume 10 yr avg. (2014-2023) • Flat YoY H1 London exchange volumes and prices. 70,000 H1 24 volume 60,000 Exchange volumes in 5
Slide 9: Progress against strategic priorities
03 PROGRESS AGAINST STRATEGIC PRIORITIES Guy Gittins, Chief Executive Officer Foxtons Group plc Half Year 2024 Results Presentation 9
Slide 10: Progress against strategic priorities
Progress against strategic priorities Continued progress in H1 2024. On track to deliver medium-term adjusted operating profit target. Strategic priorities Progress in H1 2024 6% CAGR since H1 2022. Organic growth 3%-5% • Double-digit YoY growth in Lettings new business volumes. Lettings CAGR (1) •
Slide 11: Progress against strategic priorities: delivering YoY growth through market outperformance
Progress against strategic priorities Delivering YoY growth through market outperformance. H1 adjusted operating profit progression £8.5m £6.8m £6.2m £5.4m The Group is progressing against its strategy to deliver growth through sales market cycles. By focussing on non-cyclical and (£0.9m) (£2.4m) re
Slide 12: Financial Review
04 FINANCIAL REVIEW Chris Hough, Chief Financial Officer Foxtons Group plc Half Year 2024 Results Presentation 12
Slide 13: Overview: Highlights
Overview Highlights. H1 24 H1 23 Change (£) Change (%) Revenue £78.5m £70.9m +£7.6m +11% (1) Market share gains and Adj. EBITDA £10.5m £8.4m +£2.1m +25% acquisitive growth drove H1 revenue and profit growth Adj. operating profit £8.5m £6.8m +£1.7m +24% against a backdrop of sales market weakness. Ad
Slide 14: Overview: Income statement
Overview Income statement. £m H1 24 H1 23 Change (£) Change (%) 24% increase in adjusted operating profit to £8.5m (2023: £6.8m): Revenue 78.5 70.9 +7.6 +11% • Revenue increased 11% to £78.5m, with Lettings revenue up 5%, Sales Direct costs (27.5) (26.5) (1.0) (4%) revenue up 28% and Financial Servi
Slide 15: Segmental performance: Lettings
Segmental performance Lettings delivered a year of growth from operational upgrades and acquisitions. H1 24 H1 23 Change (%) • Revenue growth included: £0.4m of like-for-like revenue growth (+1%) Financials and £2.2m incremental revenues from 2023 acquisitions. Revenue £52.4m £49.8m +5% • Double-dig
Slide 16: Segmental performance: Sales
Segmental performance Sales outperformed in historically low volume market through market share gains. H1 24 H1 23 Change (%) Financials • Revenue grew by 28%, driven by 28% volume growth, against a backdrop of flat market volumes. Revenue £21.6m £16.9m +28% Contribution £9.8m £5.5m +77% • 77% impro
Slide 17: Segmental performance: Financial Services
Segmental performance Financial Services delivered resilient performance in a turbulent mortgage market. H1 24 H1 23 Change (%) Financials Revenue £4.5m £4.2m +7% • Revenue increased by 7% despite continuing weakness in the sales market and elevated interest rates: Contribution £2.0m £1.6m +25% • 8%
Slide 18: Cash flow
Cash flow Improving net free cash flow as working capital normalises. Operating cash to net free cash inflow/(outflow) conversion Opening to closing of net cash / (net debt) Net cash from operating activities: £6.7m Opening net debt (£6.8m) Net free cash flow (£0.9m) Interest paid (£0.5m) Acquisitio
Slide 19: Operational Update
05 OPERATIONAL UPDATE Guy Gittins, Chief Executive Officer Foxtons Group plc Half Year 2024 Results Presentation 19
Slide 20: Operational update: upgrades to Foxtons Operating Platform
Operational update Delivering upgrades to Foxtons Operating Platform to enhance competitive advantages. PEOPLE, CULTURE & TRAINING TECH PLATFORM 5% YoY increase in fee earner headcount. AI-driven lead-scoring platform to drive lead Improved fee earner retention rates driving generation from br
Slide 21: Operational update: new marketing campaigns
Operational update New marketing campaigns to drive customer engagement and reinforce brand value proposition. Driving improved customer engagement: (1) +27% brand preference. (2) +30% web user engagement. (3) +15% stock on market. 1) Q2 2024 vs. Q2 2023. Source: YouGov. 2) June 2024 vs. June
Slide 22: Trading and Outlook
06 TRADING AND OUTLOOK Guy Gittins, Chief Executive Officer Foxtons Group plc Half Year 2024 Results Presentation 22
Slide 23: July trading and outlook
July trading and outlook Well positioned to deliver further YoY growth in H2. • July 2024 trading in-line with expectations. Little change in customer behaviour or market dynamics since the General Election. • H2 lettings market dynamics expected to remain broadly consistent with H1, and rents broad
Slide 24: Contact
Contact: www.foxtonsgroup.co.uk investor@foxtonsgroup.co.uk +44 (0) 207 893 6261 Foxtons Group plc Half Year 2024 Results Presentation 24