Foxtons reveals bold strategy to increase profits twofold. – TNT

Foxtons will today introduce new medium-term financial targets, including an aim to deliver £50m of adjusted operating profit – more than double the amount achieved in 2024.

Foxtons Group plc is today hosting a Capital Markets Event to outline the next phase of its growth strategy, with updated targets reflecting the significant progress made to date, the scale of the opportunity ahead and the continued momentum towards the group’s original target of delivering £28m to £33m of adjusted operating profit, as announced in March 2023.

The Capital Markets Event will take place today from 9:30am to 11:30am at the London Stock Exchange in London, for pre-registered attendees.

A live virtual broadcast will also be available to professional investors and market participants via the London Stock Exchange’s Spark Live platform, accessible through the link below. The presentation will be followed by an opportunity to ask questions of the management team.

Strategy and operating model built for scale

Foxtons says its strategy and operating model are designed for scale, built on a strong foundation that positions the business to deliver the next level of growth. The focus remains on growing non-cyclical and recurring lettings revenue, both organically and through acquisitions, alongside enhancing profitability in sales and increasing cross-sell opportunities within financial services.

The group adds that the delivery of the strategy is underpinned by the Foxtons Operating Platform, which brings together ‘best-in-sector’ technology, advanced data capabilities powered by over 20 years of data, a leading brand, best-in-class people and training, and a scalable hub-and-spoke model that creates significant operating leverage. Upgrades to the Operating Platform across technology, data, customer experience and people and culture will further strengthen Foxtons’ competitive advantages and support continued growth:

·    Acceleration of the acquisition strategy and expanding into new markets: The Group will focus on bolt-on acquisition opportunities within Foxtons’ core London market, as well as expanding its footprint into new, high value commuter markets.

·    Integrating data and AI across the technology stack: Since 2021, Foxtons has embedded data at the heart of its operations, driving consistent market outperformance and establishing itself as a data-led estate agency. The Group is now enhancing its proprietary, estate agency-optimised tech platform with AI to improve decision-making and operational efficiency. Initial AI application in propensity modelling, lead scoring and customer service systems are already demonstrating clear commercial impact and delivering measurable ROI.

·    Driving loyalty across the customer lifecycle: Foxtons is developing a customer-centric strategy aimed at increasing customer lifetime value by focusing on long-term customer engagement and retention. Technology plays a key role, with initiatives designed to enhance the customer experience and build lasting relationships, including real-time feedback systems, AI sentiment analysis, and a bespoke end-to-end digital Lettings platform.

·    People, culture and training: People are at the heart of estate agency, and the Group continues to invest in training and culture to support high performance. This focus ensures teams are equipped to deliver exceptional service and remain a key driver of the Group’s competitive advantage.

Guy Gittins, CEO of Foxtons, said: “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. 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. I’m excited about the opportunity ahead, and I’m confident we have the right strategy, people and the best technology-led platform in the industry to power our future growth and create long term value for shareholders.”

The virtual presentation link can be accessed here.