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Foxtons Group has skilled an 8% share value decline over 5 days to 51.80p, regardless of saying its first acquisition outdoors the South East area final week.
The London-based property company’s shares have fallen greater than 10% in the course of the month, at the same time as the corporate pursues geographic growth past its conventional working space.
Birmingham acquisition marks geographic shift
Foxtons acquired Birmingham unbiased lettings agent FleetMilne for £3.2 million, with a further £0.8 million deferred fee depending on 12-month efficiency targets. The transaction represents the corporate’s first transfer outdoors the South East after current acquisitions in London’s commuter belt.
The company additionally acquired Cauldwell Property Companies in Milton Keynes earlier this month, persevering with its growth technique past the capital.
Monetary efficiency and market challenges
Foxtons’ unaudited year-end buying and selling replace for the 12 months to 31 December 2025 confirmed complete income of roughly £172 million, up 5% from £163.9 million in 2024. Nonetheless, adjusted working revenue remained flat at roughly £22 million in comparison with £22.1 million in 2024.
Dan Coatsworth, Head of Markets at AJ Bell, famous the corporate faces a number of headwinds. “Foxtons is battling an ideal storm of unfavourable property market circumstances, dwindling investor curiosity in smaller firms, and destructive information circulate,” he stated.
Coatsworth added that analysts have downgraded Foxtons’ earnings forecasts by 12% over the previous month, contributing to share value strain. “There isn’t any getting over the truth that it’s nonetheless closely uncovered to the London gross sales market and that may clarify why it’s on a journey to diversify earnings geographically,” he stated.
Market outlook
The share value decline suggests investor concern over the corporate’s London gross sales market publicity outweighs optimism about geographic diversification efforts. The corporate’s flat working revenue regardless of income development signifies margin strain in present market circumstances.
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