12.03.2025
Perhaps in the face of the recent Bloomberg-amplified rumours of ‘laddish culture’ within the estate agency offices of Foxtons Group (LON:FOXT), it is more than understandable that the group will be looking to change perceived investor images by way of a Capital Markets Day within the next couple of months.
Last week, on Wednesday 5th March, London’s number one estate and lettings agency group announced a good set of results for the year to end-December 2024.
It showed revenues up 11.4% from £147.1m to £163.9m, with adjusted pre-tax profits 39.1% better at £19.2m (£13.8m), helping to lift the group’s earnings per share by 47% to 5.0p (3.4p), enabling the 30% increased total dividend of 1.17p (0.9p).
CEO Guy Gittins stated that:
"After a good start to 2025, we are well positioned to deliver another year of growth and are on-track to deliver against the medium-term growth targets I set out in March 2023.
I look forward to setting out details of the next stage of our growth plan to investors at a capital markets event in Q2 2025."
Analyst’s Views
With his Buy rating for the group’s shares, analyst Greg Poulton at Singer Capital Markets signalled that his Target Price was 92p.
He noted that the group’s strong growth trajectory has continued into its 2025 trading year.
For this year he looks for £178.6m revenues, £20.8m profits, 5.0p earnings and paying a 1.37p per share dividend.
Into 2026 his estimates are for £189.8m sales, £25.5m profits, 6.1p earnings and a 1.57p dividend.
He sees even greater profits in 2027 of some £30.3m, generating 7.3p earnings.
Yesterday, Robin Savage, at Zeus Capital, issued his updated estimates for the group, with a Buy note pitching a Target Price of 81p, reflecting the group now being underway with its next phase of growth.
For 2025 he estimates £20.5m profits, 5.1p earnings and 1.40p dividend.
His 2026 figures suggest £24.8m profits, 6.1p earnings and a 1.70p dividend.
Looking into 2027 Savage sees £28.7m profits, giving 7.1p earnings and a 2.0p per share dividend.
Also putting out a new note on the agency group, yesterday’s prediction from analyst Andy Murphy, at Progressive Research, for his valuation of Foxtons Group shares pitched 134p as his aim.
In My View
I am now looking forward to Wednesday 23rd April when the group is set to declare its Q1 results, and then we may also get the Capital Markets Day date.
A gradual programme of positive corporate news is more than likely over the next few months, which could well help to boost the group’s shares, now 62p, back over the last-year’s High of 71.40p and beyond.
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