Foxtons Group (FOXT) Trading update summary

Lettings market update

• Introduction of the Renters' Rights Act led to increased tenancy terminations, especially in student rentals, reversing about £3m of previously recognized revenue.

• Despite short-term volatility, medium-term growth opportunities are expected due to increased demand for professional lettings and property management.

Sales and financial services performance

• Sales market weakened by political uncertainty, Middle East conflict, and higher interest rates, resulting in lower transaction volumes.

• Financial Services saw revenue growth from stronger refinance volumes, increased cross-sell, and resilient new purchase mortgage revenues.

Cost management and profit outlook

• Achieved £4.5m in annualized cost savings in H1, including £3.0m from cost-reduction initiatives and £1.5m from HQ relocation.

• H1 2026 adjusted operating profit expected at approximately £8.5m, down from £12.3m in H1 2025.

• Full year 2026 adjusted operating profit forecasted between £17m and £19m, with H2 expected to be stronger due to lettings seasonality.