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Highlights:
- Foxtons acquires Haslams and Imagine Property Group for £12.6 million, expanding presence in Reading and Watford.
- CEO Guy Gittins outlines a strategy to drive earnings growth and achieve £25-30 million adjusted operating profit.
- The acquisitions align with regional growth initiatives and Foxtons’ focus on high-return lettings markets.
Foxtons Plc (LSE:FOXT) has expanded its foothold in the UK's commuter belt with the acquisition of two established lettings agencies, Haslams and Imagine Property Group, for a total investment of £12.6 million. Haslams operates in Reading, while Imagine Property Group is based in Watford—both areas experiencing strong economic growth due to their proximity to London and ongoing investment in housing and infrastructure. The acquisitions align with Foxtons' strategy of expanding its lettings portfolio in regions where housing demand is anticipated to rise, especially with political momentum supporting affordable housing initiatives.
The recent acquisitions also follow Foxtons’ targeted growth approach in areas like Guildford and Woking, further broadening its reach within the commuter belt. Labour’s pledge to develop 1.5 million affordable homes over five years has increased the appeal of these regions, which are expected to benefit from increased housing stock. The strategic move aims to capture new opportunities in high-demand areas, bolstering Foxtons' ability to offer comprehensive services in established and expanding markets.
Guy Gittins, Foxtons’ chief executive, highlighted the acquisitions as part of the company's broader growth ambitions. “Our latest acquisitions add to our strong track record of identifying, acquiring, and integrating high-quality lettings businesses to deliver attractive returns. They are a key part of our strategy to deliver £25-30 million in adjusted operating profit in the medium term," said Gittins. He praised the quality and market leadership of both Haslams and Imagine Property Group, noting that each has built strong client relationships over time, making them an ideal fit for Foxtons' expanding lettings network.
Foxtons has positioned these acquisitions to be earnings-accretive by 2025, with the purchase funded through a £30 million revolving credit facility. The addition of Haslams and Imagine is expected to drive medium-term profit targets and contribute to a sustainable increase in revenue from lettings. With a strong pipeline of additional acquisitions likely, Foxtons is on course to capture value in expanding rental markets.
This move underscores Foxtons' commitment to consolidating its lettings market position while focusing on acquisitions in high-growth regions. By integrating reputable, established agencies, Foxtons aims to benefit from organic growth in rental demand, paving the way to reach its operating profit goals in the near term.
