Foxtons Group – sets a target to double group profits, shares 63p, brokers TP 92p

Mark Watson-Mitchell
Jun 13
4 min read

13.06.2025

Ahead of announcing its first-half results on Wednesday, 30th July, last week Foxtons Group (LON:FOXT) held a Capital Markets Day outlining the next phase in its growth strategy.

The estate agency group declared its new target to deliver £50m of adjusted operating profit in the medium-term.

CEO Guy Gittins informed professional investors and market participants that:

"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 Business

Founded in 1981 by Jon Hunt, Foxtons started as a two-person estate agency in Notting Hill and has subsequently established itself as an iconic estate agency brand.

Today the group operates from a network of interconnected branches across London and the Home Counties, providing a range of residential property services through its Lettings, Sales and Financial Services businesses.

The company, which continues to be the leading estate agent in London, is known for its innovative approach, including the use of its green and yellow promotionally-branded Minis, which were launched in 2001.

Lettings, which contributes around 65% of total revenue, is the largest part of the group, delivering non-cyclical and recurring revenues from a portfolio of over 31,000 tenancies.

The Equity

There are some 330.5m shares in issue, of which 8.05% are company-owned.

Larger holders include Aberforth Partners (12.88%), 3G Capital Management (9.45%), AzValor Asset Management (7.72%), JP Morgan Asset Management (5.30%), Martin Currie Investment Management (5.17%), Lombard Odier Asset Management (4.80%), Converium Capital (4.03%), Hosking Partners (3.80%), SFM UK Management (3.65%) and Australian Retirement Trust (2.96%).

Broker’s Views

There are five brokers following the company, four of whom rate the shares as a Buy, while the fifth suggests a Hold.

The consensus average Target Price is 83.20p, with the Lowest being just 62p, and the Highest set at 103p.

Chris Millington, at Deutsche Bank, has a Buy on the group’s shares, looking for 78p as his Target.

He notes that the group is focusing on the next phase of its strategy with a target to more than double earnings to £50m by 2029.

“This upgraded target follows material progress in recent years, which has resulted in profit more than doubling between full-year 2021 and full-year 2024.

This has been achieved following the wholesale strategic review of the business in 2022, which has driven strong growth in lettings through organic and acquisitive means, and notable market share gain in sales.

Foxtons’ market opportunity is not reflected in its full-year 2026 estimated price-to-earnings ratio of 10 times.”

Analyst Greg Poulton, at Singer Capital Markets, rates the group’s shares as a Buy, with a 92p Target Price.

His estimates for the current year to end-December 2025 look for revenues to rise to £178.6m (£163.9m) with adjusted pre-tax profits of £20.8m (£19.0m), with earnings of 5.0p (4.9p) and paying a dividend of 1.37p (1.17p) per share.

Next year, Poulton sees £189.8m revenue and £25,5m profits, 6.1p per share of earnings and a 1.57p dividend.

For the 2027 year, the analyst expects £200.4m revenues, £30.3m profits, 7.3p earnings and a 1.77p per share dividend.

Analyst Robin Savage, at Zeus Capital, has a Buy out on the shares with a Target Price of 81p.

Attending the Capital Markets Event, Savage was impressed while noting that:

1. People are Foxtons’ key strength: stating that the video of the CME presentation was self-evidentiary,

2. Foxtons’ operating system uses AI across its tech stack: Foxtons’ Customer Relationship Management system is the most advanced in its sector, and

3. Technology is delivering operational improvements: increasing client service, Net Promoter Scores and improving operating margins.

His estimates are for current year £177.0m revenues, adjusted pre-tax profits of £20.5m, 5.1p of earnings and a 1.40p per share dividend.

For 2026, he sees £187.0m revenues, £24.8m profits, 6.1p earnings and a 1.70p dividend.

His 2027 figures suggest £195.5m revenues, £28.7m profits, 7.1p earnings and a 2.0p per share dividend.

In My View

This group’s shares, which touched 71.18p in late January this year, have since then been trading in the 54p to 65.50p price range.

They are now 63p, while there are expectations that the next year or two could well see them break above the 80p barrier and head up to 100p in due course.