Foxtons unveils new medium-term profit target

(Sharecast News) - Foxtons unveiled a new medium-term target to deliver £50m in adjusted operating profit, more than double the level achieved in 2024, as the estate agency group laid out the next phase of its growth strategy at a capital markets event on Wednesday. The London-listed company said the revised ambition would build on significant operational progress, and reflected its confidence in the scale of the opportunity ahead.

It also marked an advance on the previous target of £28m to £33m in adjusted operating profit, set out in March 2023.

Foxtons reaffirmed its strategic focus on growing its non-cyclical and recurring lettings revenue, both organically and via acquisitions, while also driving higher margins in sales and unlocking further cross-sell opportunities in financial services.

The group's scalable operating platform, which combines data-rich technology, a strong brand, and a centralised hub-and-spoke model, was identified as a key enabler of future growth.

Management highlighted enhancements in AI integration, customer experience, and staff training as priorities to strengthen competitiveness and improve customer retention.

Foxtons said AI tools in areas such as lead scoring, sentiment analysis, and customer service were already delivering measurable returns.

It also signalled plans to accelerate bolt-on acquisitions in London and expand into high-value commuter belt markets.

Management described the operating model as being built for scale and said the business was now positioned to capitalise on its market-leading technology and data-driven approach.

"Today, we set out stage two of our growth plan, building on the strong progress we've made over the past few years to reshape the business," said chief executive officer Guy Gittins.

"We have more than doubled our profit since 2021 and our ambition is to double it again in this next phase of growth, and accordingly we have set out a new target to deliver £50m of adjusted operating profit in the medium term.

"We have a clear and scalable strategy, an industry leading operating platform and a commitment to delivering outstanding results for our customers through reliable, high-quality service."

At 1015 BST, shares in Foxtons Group were up 1.38% at 66.2p.

Reporting by Josh White for Sharecast.com.