Foxtons Group plc proposed a final dividend of 0.7p per share for FY23 under the existing policy, the same as the final dividend for 2022. Under the new policy we would expect total dividends paid in 2024 and 2025 to at least maintain the level paid in 2022 and 2023. An interim dividend of 0.2p per share was paid in September 2023. The Board has proposed a final dividend of 0.7p per share which maintains the total dividend for the year at 0.9p per share (2022: 0.9p per share).
Other financial highlights include:
Revenue up 5% to £147.1m and adjusted operating profit up 2% to £14.3m. Growth delivered despite a significantly weaker sales market and headcount investment required to rebuild core capabilities.
Lettings revenue, representing 70% of total revenue, up 16% to £101.2m as organic and acquisitive growth strategies are delivered. Two acquisitions completed in 2023, adding over 2,800 tenancies.
Sales revenue down 14% to £37.2m as challenging market conditions were partially mitigated by market share driven outperformance of the wider London market, which was down over 24% on value.
Financial Services revenue down 14% to £8.8m as weaker new purchase mortgage volumes were partially offset by non-cyclical and recurring refinance volumes.
Adjusted operating profit up 2% to £14.3m and adjusted EBITDA up 6% to £17.5m. Lettings adjusted operating profit growth offset an adjusted operating loss in Sales which reflected depressed volumes and fee earner investment to drive future growth.
Profit before tax down 34% to £7.9m after charging £4.5m of adjusted items primarily relating to the integration of Ludlow Thompson and branch network consolidation, unlocking £3m of annualised synergies from 2024. Adjusted profit before tax up 3% at £12.4m (2022: £12.0m).
Net free cash outflow of £0.1m reflecting £13.9m of Lettings acquisition spend, £10.8m of working capital investment as shorter landlord billing terms are introduced to improve competitiveness and portfolio retention, £2.7m of dividends paid, and £1.1m of share buybacks.
