Foxtons Group (LSE:FOXT) shares fell 3.4% to 42.5p, after reporting Q1 trading in line with expectations and keeping full‑year guidance.
Lettings revenue rose 5% to £26.4m in the three months to 31 March, comprised of £0.6m of organic growth, £0.9m from acquisitions and £0.2m lower interest on client monies.
The Group completed two acquisitions in Milton Keynes and Birmingham and said the Foxtons Operating Platform will drive revenue and cost synergies, with a pipeline of further opportunities being worked on.
Sales revenue fell 35% to £10.7m as Q1 2025 benefited from elevated transaction volumes ahead of the 31 March 2025 stamp duty deadline, with like‑for‑like Sales slightly above Q1 2024 levels.
New buyer activity was weaker than expected, blamed on recent geopolitical events, higher mortgage rates and lower product availability, and the Group is repositioning its Sales business to reflect current market conditions.
Financial Services revenue increased 3% to £2.6m, supported by refinance activity and ancillary revenues which partially offset weaker new purchase activity.
The Group has initiated a cost‑reduction programme targeting at least £3m of annualised savings, building on £1.5m already delivered from its HQ relocation, with measures including headcount reallocation and redeployment of support roles.
"Our strategic focus on recurring revenues has ensured that Foxtons has delivered a resilient performance despite recent market headwinds," Guy Gittins, Chief Executive Officer, said.
Management expects the Renters' Rights Act, effective 1 May, to create growth opportunities for the business while full‑year guidance remains unchanged.
