Interim Results

Foxtons Group plc

INTERIM RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2026

30 July 2026

Recurring revenues underpinned performance in a challenging sales market, whilst proactive cost actions position the Group for future growth.

Foxtons Group plc (LSE: FOXT) ("the Group" or "Foxtons") navigated a challenging H1 market backdrop reflecting materially lower volumes in the sales market and short-term volatility in the lettings market following the introduction of the Renters' Rights Act ("RRA"). While market conditions weighed on performance, the Group's strategic focus on growing Lettings has created a more resilient business with a stronger recurring revenue profile. Proactive operational and cost actions were implemented in H1 and are expected to position the Group for future growth.

Financial highlights:

·    Group revenue down 3% to £83.7m:

-     Lettings revenue flat, reflecting growth in Build to Rent and ancillary landlord and tenant services (e.g. compliance and insurance) alongside a £1.7m contribution from acquisitions. This was offset by a £3.0m reversal of previously recognised, contractually due revenue, from elevated tenant-led tenancy terminations following the introduction of the RRA.

-      Sales revenue down 13%, against a comparator period which benefitted from stamp duty deadline tailwinds. Market transaction volumes decreased, as domestic political uncertainty and conflict in the Middle East contributed to weaker consumer confidence and higher-than-expected interest rates.

-       Financial Services revenue up 20%, underpinned by stronger refinancing volumes, with operational upgrades driving growth in ancillary revenues and supporting resilient purchase mortgage revenue.

-       Non-cyclical and recurring revenues generated 69% of total revenue in H1 2026 (H1 2025: 65%)⁶.

·   Adjusted operating profit down £3.6m, reflecting £3.0m of RRA Lettings revenue reversals (which dropped directly through to profit), Sales market headwinds and £1.3m benefit from cost actions (annualised benefit of £4.5m).

·    Period-end net debt of £28.4m (HY 2025: £18.2m), reflecting £2.2m lower net free cash flow, £8.8m of acquisition spend and £3.2m of shareholder returns (buybacks and dividends). Net free cash flow impacted by lower Sales revenue and an expected working capital outflow linked to the roll-out of more competitive landlord billing terms. RCF increased from £40m to £50m to support the Group's organic and inorganic growth strategy.

·    Interim dividend maintained at 0.24p per share.

 Operational highlights:

·    In Lettings:

-       Growth in value-add services including 17% growth in revenues from ancillary landlord and tenant services, and 10% growth in the cross-sell of property management services, as we capitalise on growth opportunities post RRA.

-       29% growth in Build to Rent revenues through deepening partnerships with institutional clients.

·    In Sales:

-       Completed a detailed operational review and implementing operating model changes to optimise the business for the prevailing lower-volume market. Cost savings have been delivered through rightsizing actions, while ongoing operational enhancements are expected to drive further improvement in productivity, efficiency and margins.

-       33% growth in high-margin cross-sell revenues, including Foxtons' auctions offering.

·    In Financial Services:

-       Operational improvements drove higher levels of client retention and cross-sell revenues.

-       Enhanced connectivity with estate agency supported robust new purchase mortgage revenues.

·    Progressing our buy, build and bolt-on strategy with two platform acquisitions in Milton Keynes and Birmingham. Further growth is targeted through market share gains and a pipeline of bolt-on acquisitions. Performance to date is in line with expectations.

·    £4.5m of annualised cost savings implemented. Includes £3.0m of savings from a proactive cost-reduction programme in response to sales market headwinds, and builds on £1.5m of savings delivered from the January 2026 HQ relocation which largely mitigates National Insurance cost increases and other inflationary pressures. The financial benefit of the cost savings is H2 weighted.

2026 trading and outlook

·   Underlying drivers of the lettings market remain robust, with demand continuing to outstrip supply. The impact of elevated tenant terminations has moderated since May, with levels expected to stabilise over H2. We do not expect significant changes in tenant behaviour or occupation levels over the medium-term.

·   The RRA is expected to create growth opportunities over the medium-term, by driving a flight to large, quality agents, increasing adoption of ancillary services, linking revenues to inflation through new annual rent reviews enabled under RRA, and accelerating consolidation in the sector.

·  The London sales market remains challenging, with buyer activity continuing to be held back by weak consumer confidence and higher interest rates. We are continuing to optimise the operating model for these lower-volume markets.

·   As guided in the trading update on 16 July, the Group expects full year 2026 adjusted operating profit to be in the range of £17m-£19m, with performance weighted towards H2. This reflects Lettings seasonality, the expected stabilisation of early tenant terminations and cost actions taking effect. The Group remains focused on managing continued market headwinds, whilst strengthening its position for future growth.

Guy Gittins, Chief Executive Officer, said:

"Against a challenging backdrop of continued sales market weakness and short-term lettings volatility, we continued to execute on our strategy, with our long-term focus on accelerating growth in non-cyclical and recurring Lettings revenues underpinning performance through these headwinds.

"In Sales, we've taken action to align the business with market conditions and support performance at lower transaction volumes. With 2026 likely to prove one of the lowest years for London transaction volumes on record, we urge the new cabinet to prioritise Stamp Duty reform, which remains the single biggest barrier to home moving - for first-time buyers trying to get on the ladder, for growing families and for those looking to downsize.

"Whilst the Renters' Rights Act has created a period of transition for the sector, we are already seeing encouraging early benefits, including increased demand for property management services and continued growth in Build to Rent. The underlying performance of our Lettings business remained strong and we continued to execute against our growth strategy, expanding into two new complementary, high-growth markets through acquisition.

"We remain confident the Act will strengthen Foxtons' long-term growth opportunity by increasing demand for professional agency services and accelerating industry consolidation. This is creating attractive opportunities to expand our footprint and increase market share, and we intend to build on the momentum of recent acquisitions through a pipeline of bolt-on opportunities, complemented by targeted organic investment. With our strong brand, scalable platform and a clear growth strategy we remain well positioned to create long-term value for shareholders."

For further information, please contact:

The Company will present a live webcast at 9:00am (BST) for analysts and investors. You are required to pre-register at the following link: https://secure.emincote.com/client/foxtons/foxtons011

The presentation will also be broadcast via conference call. You are required to pre-register at the following link: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=7620421&linkSecurityString=170322cdd2

¹      H1 2025 has been restated under the Group's revised adjusted items policy. Refer to Note 16 for definitions of the adjusted measures.

²      Adjusted EBITDA is consistent with the definition of adjusted EBITDA used to calculate the Group's revolving credit facility covenants. The metric is defined as profit before tax before finance income, non-IFRS 16 finance costs, other gains/(losses), depreciation of property, plant and equipment (but after IFRS 16 depreciation), amortisation, share-based payment charges and adjusted items.

³      Adjusted operating profit represents profit before tax before amortisation of acquired intangibles, finance income, finance cost, other gains/(losses) and adjusted items.

⁴      Adjusted earnings per share is defined as earnings per share excluding the impact of adjusted items and amortisation of acquired intangibles.

⁵   Net free cash flow is net cash from operating activities less repayment of IFRS 16 lease liabilities and net cash used in investing activities, excluding the acquisition of subsidiaries (net of any cash acquired) and divestments and purchase of investments.

⁶      Defined as revenue from Lettings and refinance activities within Financial Services.

About

Founded in 1981, Foxtons is London's leading estate agency brand and the UK's largest lettings agency brand, with a portfolio of 32,000 tenancies. The Group operates from a network of branches in London and complementary, high growth markets, offering a range of residential property services across three business segments: Lettings, Sales and Financial Services. 

The Group's strategy to accelerate growth is focused on non-cyclical and recurring revenues from Lettings, supplemented by growth in Sales and Financial Services. This growth is underpinned by its key competitive advantage, the Foxtons Operating Platform, which comprises unrivalled and market leading technology and data capabilities, its brand, unique hub and spoke model and its performance-led and inclusive culture. 

The business has four strategic priorities:

·      Lettings organic growth: driving portfolio growth by strengthening customer acquisition and retention, alongside enhancing margins through cross-selling high-value services.

·      Lettings acquisitions: acquire, integrate and service high-quality lettings portfolios.

·      Sales growth: increasing market share by growing the share of property instructions and improving conversion rates, whilst driving profitability through enhanced productivity.

·      Financial Services growth: improving scale and cross-sell to drive revenue growth.

To find out more, please visit www.foxtonsgroup.co.uk

PERFORMANCE AT A GLANCE

¹        These measures are APMs used by the Group and are defined, and purpose explained, within Note 16.

²        H1 2025 adjusted measures have been restated under the Group's revised adjusted items policy. The policy now excludes non-cash IFRS 2 charges from the CEO's LTIP buyout award, as these relate to forfeited incentives from his former employer and do not represent underlying performance. Refer to Note 16 for definitions of the adjusted measures.

³       For comparison purposes, net debt at 31 December 2025 was £16.9m.

⁴        Segmental metrics are defined within Note 16.

⁵        H1 2025 Lettings volumes and H1 2025 average revenue per Lettings transaction have been restated to exclude renewals from fixed-term tenancies which no longer exist from 1 May 2026 onwards. Refer to Note 16(i) for further information.

⁶        Foxtons core addressable markets exclude acquisitions in Birmingham, Milton Keynes, Reading and Watford.

chief executive's review

Entering the year, we expected a strong start to 2026 and invested in our teams and operational capacity to support increased levels of activity. However, market sentiment deteriorated following prolonged domestic uncertainty and the conflict in the Middle East, which weighed on consumer confidence, borrowing rates and ultimately transaction activity. At the same time, the introduction of the Renters' Rights Act ("RRA") created a period of adjustment within the lettings market, resulting in tenant-led short-term volatility.

In response, we broadened the operational review of Sales to reposition the business for the prevailing market conditions, delivering significant cost savings whilst continuing to invest in the capabilities that underpin our growth strategy. We expect the benefits of these actions to come through in the second half, and we remain focused on cost discipline and productivity as market conditions stay challenging.

Against this backdrop, the Group delivered a resilient revenue performance supported by our long-term strategy to expand the Lettings business and grow higher-margin ancillary services. Recurring and non-cyclical revenues continue to form the majority of Group revenues, providing stability despite sales market headwinds.

Across the Group, we continued to invest in the capabilities that differentiate Foxtons, including technology, data, customer experience and our people. These investments strengthen our competitive position, support future growth and reinforce the operational advantages provided by the Foxtons Operating Platform.

Financial results and capital allocation

Revenue for the year was down 3% at £83.7m, adjusted EBITDA down 25% to £10.4m, adjusted operating profit down 29% to £8.9m and profit before tax down 57% to £4.4m.

Lettings revenue was flat at £54.7m. Growth in Build to Rent and high-margin ancillary products and services, together with a £1.7m contribution from acquisitions, was offset by a £3.0m reversal of previously recognised revenue following elevated early tenancy terminations after the introduction of the RRA, and £0.4m lower interest on client monies. The core lettings portfolio remained resilient and, supported by acquisitions, the total portfolio now stands at 32,000 tenancies.

Sales revenue decreased 13% to £23.5m, reflecting challenging market conditions in the period. Like-for-like revenue declined 15%, with used homes revenue down 11%, broadly in line with market volumes. New homes revenue decreased 46%, reflecting lower unit completions and softer buyer demand, consistent with trends reported across the housebuilding sector. Despite these market headwinds, the Group continued to make operational progress with year-on-year cross-sell and ancillary revenues increasing by 33% to £2.4m. Acquisitions contributed £0.6m of revenue in the half.

Financial Services revenue increased by 20% to £5.4m, driven by strong growth in refinancing activity and supported by operational enhancements that improved customer retention and increased ancillary revenues. New purchase mortgage revenues remained resilient and outperformed the wider sales market.

Adjusted operating profit decreased 29% to £8.9m, reflecting the £3.0m Lettings revenue reversal which largely dropped through to profit, alongside lower Sales revenue. The Group has implemented £4.5m of annualised savings in the half, with a £1.3m benefit in the half. The savings include £3.0m from a proactive cost‐reduction programme, and builds on £1.5m of savings delivered from the relocation of our headquarters which largely mitigated National Insurance cost increases and other inflationary pressures.

Net debt at period-end stood at £28.4m (30 June 2025: £18.2m), reflecting £1.4m of net free cash flow generation, £8.8m spent on acquisitions and £3.2m of shareholder returns comprising £2.7m in dividends and £0.5m in share buybacks. The interim dividend has been maintained at 0.24p per share.

H1 2026 market conditions and Renters' Rights Act update

The underlying performance of the London lettings market remained strong, with robust tenant demand and constrained supply continuing to underpin prices and the attractiveness of this market. Properties were let at their fastest pace in four years, up 8% year-on-year, reflecting this supply and demand imbalance. Rental values were stable during the period, remaining at elevated levels and close to the upper end of renters' budgets.

Against this backdrop, the introduction of the RRA, the most significant legislative change to the sector since the Housing Act 1988, created some short-term volatility as tenants adjusted to the new lettings rules. A small proportion of tenants exercised the additional flexibility afforded by the legislation, leading to higher early termination levels in May and June. The impact was greatest immediately following implementation of the legislation in May, as some tenants took the opportunity to serve early notice, and has moderated since. Importantly, while termination volumes increased, this represented an average of only 150 additional terminations per week relative to a portfolio of 32,000 tenancies, with the vast majority of tenants remaining in situ. Importantly, this was a tenant-led trend and does not reflect landlords exiting the sector.

We continue to believe the RRA creates significant medium-term opportunities for the Group. Already we are seeing that demand for professional advice, compliance expertise and high-quality property management is increasing. This is reflected in our first-half performance, with property management cross-sell growing 10%, and Build to Rent delivering double-digit growth as private landlords and institutional investors increasingly look to Foxtons for guidance and support in navigating the new regulatory environment.

In Sales, market conditions were more challenging in the first half against a comparator period that benefited from stamp duty deadline tailwinds. Domestic political uncertainty and conflict in the Middle East weighed on consumer confidence through a weaker macroeconomic backdrop and a higher-for-longer interest rate environment, contributing to lower transaction volumes. As a result, activity across Foxtons' core London markets was down 14% year-on-year. New homes sales were more significantly impacted, as both developers and buyers remained cautious in the prevailing market environment.

New buyer activity remained subdued throughout the period, reflecting the uncertain economic backdrop. New agreed sales volumes consistently tracked below prior-year levels, down 11% year-on-year, indicating a meaningful improvement in market activity is unlikely in the near term. House prices remained broadly stable, with average London house prices largely unchanged at £541,000. While many vendors have adopted a wait-and-see approach and maintained price expectations at prior-year levels, demand remains healthy for appropriately priced properties.

Operational progress

Sales operational review

In anticipation of a prolonged period of lower transaction volumes across the Sales market, our new Managing Director, James Stevenson, led a comprehensive operating review of the Sales business. The review identified a number of opportunities to drive productivity, streamline operations and improve profitability, while maintaining the differentiated full-service offering that underpins the Foxtons brand.

We are executing a programme of operational and organisational efficiency initiatives designed to improve productivity, margins and profitability. This includes right-sizing the business, increasing fee-earning capacity, and harnessing automation, AI and self-service technology to streamline workflows and reduce support complexity. At the same time, we are accelerating growth in higher-margin ancillary and cross-sell revenues through greater customer adoption of complementary services. These actions have delivered cost savings alongside driving a 33% increase in cross-sell revenues, to enhance margins and support future earnings growth.

Importantly, these changes have been carefully designed to maintain our ability to continue supporting our landlords as they reposition their portfolios. Our sales expertise remains a critical component of our broader customer proposition, enabling us to support landlords through disposals, acquisitions and other strategic decisions while preserving the high levels of service for which Foxtons is known.

Acquisitions

We continued to execute our buy, build and bolt-on acquisition strategy during the period, completing two platform acquisitions in Birmingham and Milton Keynes. Our geographical expansion is focused on expanding into attractive regional markets that benefit from strong lettings demand, close economic links to London and significant opportunities for consolidation. These acquisitions establish a foothold in two strategically important markets and create a compelling platform for future growth.

By combining the strong local management teams, agency expertise and customer relationships of these businesses with the capabilities of the Foxtons Operating Platform, we are able to accelerate growth and profitability. This drives improved organic growth and enables further bolt-on acquisitions. We have already established a strong pipeline of opportunities and remain confident in our ability to build leading positions in both markets while delivering attractive returns for shareholders.

Foxtons Operating Platform

We have also continued to invest in our industry-leading Foxtons Operating Platform to retain our competitive advantage and support delivery of our growth strategy.

This includes initiatives that strengthen our customer proposition and support future growth. During the half, we launched our new "Foxtons Loves Landlords" campaign, a targeted marketing initiative designed to reinforce our position as the leading agency partner for landlords. Against a backdrop of increasing regulation, the campaign highlights Foxtons' commitment to championing and supporting landlords while increasing engagement with both existing and prospective customers. This forms part of our broader Lettings strategy to grow market share, deepen customer relationships and increase the uptake of higher-margin ancillary services across our landlord base.

Alongside investing in our customer proposition, we continue to invest in the people and culture that underpin our long-term success. Foxtons is a people-first business and maintaining a high-performing, engaging and inclusive culture is critical to our continued success. During the period, we appointed a new Managing Director of People & Culture, building on the enhancements already made over recent years. Through our "Getting It Done. Together." framework, we have continued to invest in recruitment, career development, employee engagement and wellbeing, while further embedding the values and behaviours that support excellent customer outcomes. We remain focused on creating an environment that attracts, motivates and retains talented individuals, ensuring we have the leadership and capabilities required to deliver our strategic priorities and long-term growth ambitions.

July trading and outlook

Trading in July has remained largely consistent with first half trends. In Lettings, tenant demand remains healthy with the business focussed on maximising opportunities during the peak lettings market. Although tenant-led terminations remain at elevated levels versus the prior year, the financial impact has moderated since May as the market stabilises after a period of adjustment.

In Sales, buyer activity levels continue to be held back, in-line with preceding months. We have implemented cost actions, with the majority of the benefit falling in the second half. Our focus through the rest of the year is continuing to implement the upgrades from our operational review and delivering results for customers in a challenging market.

Notwithstanding the short-term tenant-led volatility in the Lettings market following the introduction of the RRA, the strength and resilience of our business model has once again been demonstrated. Our portfolio of non-cyclical and recurring revenues has provided significantly greater protection to Group revenue and profitability than in previous sales market downturns, reflecting the strategic progress we have made in recent years. We have strong foundations, a clear strategy and a highly scalable operating platform and I remain confident that Foxtons is well positioned for the future.

FINANCIAL REVIEW

¹        APMs are defined, purpose explained and reconciled to statutory measures within Note 16 of the condensed consolidated interim financial statements.

²        H1 2025 adjusted measures have been restated under the Group's revised adjusted items policy. The policy now excludes non-cash IFRS 2 charges from the CEO's LTIP buyout award, as these relate to forfeited incentives from his former employer and do not represent underlying performance. H1 2025 adjusted items and adjusted measures have been restated throughout the financial review to ensure comparability. Refer to Note 16 of the financial statements for definitions of the adjusted measures.

³        Refer to Note 2 and Note 6 of the financial statements for a reconciliation to statutory measures and purpose.

⁴        For comparison purposes, net debt at 31 December 2025 was £16.9m.

Note: Throughout the financial review, values in tables/narrative may have been rounded and totals may therefore not be the sum of presented values in all instances.

Financial overview

As presented in the table above, key financial performance measures include:

•      Revenue decreased by 3% to £83.7m (2025: £86.1m), with Lettings revenue flat, Sales revenue down 13% and Financial Services revenue up by 20%.

•      Adjusted EBITDA decreased by 25% to £10.4m (2025: £13.9m) and adjusted operating profit decreased by 29% to £8.9m (2025: £12.5m).

•      Profit before tax decreased by 57% to £4.4m (2025: £10.2m) and profit after tax decreased by 60% to £2.9m (2025: £7.4m).

•      Basic adjusted earnings per share was 1.8p (2025: 2.8p) and basic earnings per share was 1.0p (2025: 2.5p).

•      Net free cash was £1.4m (2025: £3.6m) and net debt at 30 June was £28.4m (31 December 2025: £16.9m; 30 June 2025: £18.2m).

•      The Board has declared an interim dividend of 0.24p per share (2025: 0.24p per share).

Revenue

¹        'Volumes' and 'Revenue per transaction' are defined in Note 16 of the condensed consolidated interim financial statements.

²        H1 2025 Lettings volumes and H1 2025 average revenue per Lettings transaction have been restated to exclude renewals from fixed-term tenancies which no longer exist from 1 May 2026 onwards. Refer to Note 16(i) of the financial statements for further information.

The Group consists of three operating segments: Lettings, Sales and Financial Services. Lettings represents 65% (2025: 63%), Sales 28% (2025: 31%) and Financial Services 6% (2025: 5%) of Group revenue. Non-cyclical and recurring revenue streams, generated by Lettings and refinance activity within Financial Services, represents 69% (2025: 65%) of Group revenue.

Lettings revenue

Lettings revenue was flat at £54.7m (2025: £54.6m). Growth in Build to Rent and high-margin ancillary products, together with a £1.7m contribution from acquisitions (relating to the Cauldwell and FleetMilne acquisitions in January 2026 and the Marshall Vizard acquisition in February 2025), was offset by a c.£3.0m reversal of previously recognised revenue following elevated early tenancy terminations after the introduction of the RRA, and £0.4m lower interest on client monies reflecting falls in the Bank of England rate.

Transaction volumes increased by 6%, which benefitted from new acquisition volumes. Average revenue per Lettings transaction (total) was 6% lower at £7,917 (2025: £8,404), impacted by the elevated tenant-led tenancy terminations during May and June, combined with lower rents in new markets outside London. The average revenue per Lettings transaction in Foxtons' core addressable markets remained flat at £8,690 (2025: £8,722).

Lettings revenue includes £2.5m (2025: £2.9m) of interest earned on client monies which supports the operating costs of managing client money, such as staff costs, bank and card fees, and compliance costs.

Sales revenue

Sales revenue decreased by £3.4m or 13% to £23.5m (2025: £26.9m), against a comparator period which benefitted from stamp duty deadline tailwinds, reflecting challenging market conditions in the period. Like-for-like revenue declined 15%, with used homes revenue down 11%, broadly in line with market volumes. New homes revenue decreased 46%, reflecting lower unit completions and softer buyer demand, consistent with trends reported across the housebuilding sector. Despite these market headwinds, the Group continued to make operational progress with year-on-year cross-sell and ancillary revenues increasing by 33% to £2.4m. Acquisitions contributed £0.6m of Sales revenue in H1 2026.

Average revenue per Sales transaction (total) was 1% lower at £11,139 (2025: £11,290), reflecting expansion into commuter markets which command lower average fees. Average revenue per Sales transaction in Foxtons' core addressable markets increased by 4% to £12,837 (2025: £12,294), with the average price of properties sold by Foxtons in its core addressable markets up 1% to £566,000 (2025: £563,000).

Across the period, market share of exchange volumes in Foxtons' core addressable markets remained robust at 4.9% (2025: 5.0%).

Financial Services revenue

Financial Services revenue increased to £5.4m (2025: £4.5m) driven by strong growth in refinancing activity and supported by operational enhancements that improved customer retention and increased ancillary revenues. New purchase mortgage revenues remained resilient and outperformed the wider sales market.

Contribution and contribution margin

Contribution, defined as revenue less direct salary costs of front office staff and bad debt charges, was £53.2m (2025: £56.0m). Contribution margin for the period was 63.6% (2025: 65.0%), reflecting the following segmental margin changes:

·     Lettings contribution margin decreased to 74.7% (2025: 75.9%) as growth in higher margin revenues, such as property management services and cross-sell of related ancillary services, was offset by the reversal of c.£3.0m of previously recognised revenue that had been contractually due following elevated tenant-led tenancy terminations during May and June after the introduction of the RRA.

·     Sales contribution margin decreased to 43.2% (2025: 47.1%) due to a decrease in Sales fee earner productivity compared to the prior year arising from lower market transaction volumes, partly mitigated by headcount adjustments made in Q2 2026. The H1 2025 comparator was also boosted by elevated sales activity ahead of the March 2025 stamp duty deadline.

·      Financial Services contribution margin remained broadly unchanged at 39.6% (2025: 39.7%).

Total average fee earner headcount across Lettings, Sales and Financial Services increased by 3% to 913 (2025: 888), reflecting additional heads from acquisitions, partially offset by Sales fee earner headcount reductions following right-sizing actions, which were initiated in Q2. Excluding incremental acquisition headcount, total average fee earner headcount in H1 2026 was 882 compared with 900 in FY 2025.

Adjusted operating profit and adjusted operating profit margin

Adjusted operating profit for the period reduced by £3.6m to £8.9m (2025: £12.5m) and adjusted operating profit margin decreased to 10.6% (2025: 14.6%). Lettings adjusted operating profit decreased by £1.3m to £14.3m, Sales adjusted operating loss increased by £2.7m to £4.7m and Financial Services adjusted operating profit increased by £0.1m to £0.5m. The reduction in adjusted operating profit reflects the previously mentioned c.£3.0m Lettings revenue reversal which largely dropped through to profit, alongside lower Sales revenue. The Group has implemented £4.5m of annualised savings in the half, with a £1.3m benefit in the half. The savings include £3.0m from a proactive cost‐reduction programme, and builds on £1.5m of savings delivered from the relocation of our headquarters which largely mitigated National Insurance cost increases and other inflationary pressures.

Refer to Note 2 of the condensed consolidated interim financial statements for a reconciliation of adjusted operating profit to the closest equivalent IFRS measure.

Consistent with prior periods, for the purposes of segmental reporting, shared costs relating to the estate agency businesses are allocated between Lettings and Sales with reference to relevant cost drivers, such as front office headcount in the respective business. Corporate costs are not allocated to the operating segments and are presented separately.

Within adjusted operating profit, £2.5m (2025: £2.4m) of depreciation, amortisation and share-based payment IFRS 2 charges were incurred as follows:

¹        Including National Insurance contributions payable in connection with the schemes.

Adjusted EBITDA and adjusted EBITDA margin

Adjusted EBITDA for the period reduced by £3.5m to £10.4m (2025: £13.9m), reflecting the same factors that drove the decrease in adjusted operating profit. Adjusted EBITDA margin decreased to 12.5% (2025: 16.1%).

Adjusted EBITDA represents the profit before tax before finance income, non-IFRS 16 finance costs, other gains/(losses), depreciation of property, plant and equipment (but after IFRS 16 depreciation), amortisation, share-based payment charges and adjusted items. Since the measure includes IFRS 16 lease depreciation and IFRS 16 lease finance cost, adjusted EBITDA includes all elements of the Group's leasing costs and therefore fully reflects the Group's lease cost base. Refer to Note 16 of the condensed consolidated interim financial statements for a reconciliation of adjusted EBITDA to the closest equivalent IFRS measure.

Adjusted items

A net adjusted items charge of £1.6m (2025: £0.2m credit) was incurred in the period. Adjusted items, due to their size and incidence require separate disclosure in the financial statements to reflect management's view of the underlying performance of the Group and allow comparability of performance from one period to another. The table below provides detail of the adjusted items in the period.

¹   Costs related to repositioning the business to current Sales market conditions, including staff costs and vehicle lease terminations.

² Transaction related costs incurred from the acquisitions of Cauldwell and FleetMilne in H1 2026, and Marshall Vizard in H1 2025.

³   Net property related and other charges/(reversals) mainly comprise the net of charges for re-estimation of property and onerous cost provisions, gains on the surrender of leases and other charges and credits relating to vacant or sublet property.

⁴   The branch asset impairment charges related to property, plant and equipment of £0.1m (2025: £nil) and right-of-use assets of £0.4m (2025: £nil), as disclosed in Note 8.

Profit before tax and adjusted profit before tax

Profit before tax has decreased by 57% to £4.4m (2025: £10.2m) after charging £1.6m (2025: £1.0m) of net finance costs and other income, primarily relating to IFRS 16 lease finance costs. Adjusted profit before tax, which excludes adjusted items and amortisation of acquired intangibles, was £7.3m (2025: £11.5m).

Profit after tax

The Group has a low-risk approach to its tax affairs and all business activities are within the UK and are UK tax registered and fully tax compliant. The Group does not have any complex tax structures in place and does not engage in any aggressive tax planning or tax avoidance schemes. The Group is transparent, open and honest in its dealings with tax authorities.

Profit after tax of £2.9m (2025: £7.4m) is after a total tax charge of £1.5m (2025: £2.8m), of which £0.4m (2025: £0.3m) relates to a non-cash deferred tax accounting credit and £1.9m (2025: £3.1m) relates to a current tax charge. The effective tax rate for the period was 33.3% (2025: 27.0%), which compares to the statutory corporation tax rate of 25.0% (2025: 25.0%). The 2026 effective tax rate is higher than the statutory corporation tax rate due to the tax effect of non-deductible expenditure.

Net deferred tax liabilities totalled £26.9m (2025: £26.6m), which comprise £29.3m (2025: £29.5m) of deferred tax liabilities relating to the Group's intangible assets, offset by deferred tax assets of £2.3m (2025: £2.9m). The deferred tax assets mainly relate to share-based payments, property, plant and equipment and tax losses brought forward which are expected to be recovered through future taxable profits.

The Group received no tax refunds during the period (2025: £nil).

Adjusted operating cost base

The Group defines its adjusted operating cost base as the difference between revenue and adjusted operating profit, excluding depreciation of property, plant and equipment and amortisation of non-acquired intangible assets. The reconciliation of the adjusted operating cost base measure is presented below:

The table below analyses the adjusted operating cost base into five categories. The adjusted operating cost base increased by £1.1m to £73.1m (2025: £72.0m), reflecting a proactive cost-reduction programme which partly offset inflationary cost pressures and £1.9m of incremental acquisition costs.

Key movements in the adjusted operating cost base in H1 2026 versus H1 2025 are as follows:

·      Direct costs (direct salary costs of branch fee earners and bad debt charges) increased by £0.4m, reflecting headcount reductions as part of a cost-reduction programme, offset by £0.8m of incremental acquisition direct costs and other inflationary pressures.

·      Branch operating costs (shared between Lettings and Sales) increased by £0.1m.

·      Centralised revenue generating operating costs (centralised fee earners, lead generation and property management) increased by £0.8m, primarily reflecting selective investment in fee earner headcount.

·      Central overheads were flat, reflecting £1.1m of incremental acquisition overheads, offset by a proactive cost-reduction programme.

·      Corporate costs (not directly attributed to the operating segments) were £0.3m lower.

Earnings per share

Cash flow from operating activities and net free cash flow

¹   Excludes £8.8m (2025: £3.1m) of cash outflows relating to the acquisition of subsidiaries (net of any cash acquired).

Operating cash flow before movements in working capital decreased by £4.3m to £14.9m (2025: £19.2m). Net cash from operating activities decreased by £3.4m to £8.5m (2025: £11.9m) due to the lower operating cashflows, partly offset by a lower working capital outflow. Repayment of IFRS 16 lease liabilities reflects lower lease costs and an initial rent free period relating to the January 2026 HQ relocation. Net free cash flow was £1.4m (2025: £3.6m).

Net debt

Net debt at 30 June 2026 was £28.4m (30 June 2025: £18.2m; 31 December 2025: £16.9m). The net debt position primarily reflects net free cash flow of £1.4m (2025: £3.6m), offset by £8.8m of acquisition related spend (2025: £3.1m), a share buyback programme under which £0.5m was paid to repurchase shares for cancellation (2025: £2.8m) and £2.7m of dividends paid (2025: £2.9m).

Revolving credit facility

In H1 2026, the Company increased the revolving credit facility (RCF) from £40m to £50m and amended the leverage covenant from 1.75x to 2.25x (net debt to adjusted EBITDA). The RCF is also subject to an interest cover covenant (adjusted EBITDA to interest not to be less than 4x) which remained unchanged. Both covenants are calculated using pre-IFRS 16 accounting principles as detailed within Note 16.

The RCF attracts a margin of 1.65% above SONIA and is unsecured.

The Group has the right to defer settlement of the RCF providing that the covenants are met. The Group was in compliance with the covenants throughout the period and at 30 June 2026 with a leverage ratio of 1.3x and an interest cover ratio of 18x.

Other balance sheet positions

At 30 June 2026 the significant balance sheet positions and movements in the period were:

·      Goodwill of £62.5m (31 December 2025: £54.5m) and other intangible assets of £118.3m (31 December 2025: £116.7m), with the increase in goodwill and other intangible assets mainly due to the acquisition of Cauldwell and FleetMilne which contributed £4.9m and £3.1m of goodwill, respectively.

·      Total contract assets of £29.3m (31 December 2025: £27.1m) and total contract liabilities of £9.4m (31 December 2025: £9.8m). The increase in contract assets was driven by a shortening of landlord billing periods and the addition of contract assets from recent acquisitions.

·      Trade and other receivables of £20.2m (31 December 2025: £17.6m), with the lower year end 2025 balance primarily reflecting seasonality.

·      Lease liabilities of £37.8m (31 December 2025: £40.0m) and right-of-use assets of £35.1m (2025: £38.5m), with additions, including from recent acquisitions, more than offset by ongoing lease payments and right-of-use asset depreciation.

·      Borrowings of £30.2m (31 December 2025: £22.4m) to finance the Group's acquisition strategy, working capital requirements and shareholder returns.

Dividend policy and capital allocation

The Board has declared an interim dividend of 0.24p per share (2025: 0.24p per share). Payment will be made on 11 September 2026 to shareholders on the register at close of business on 7 August 2026. The shares will be quoted ex-dividend on 6 August 2026. The Company operates a Dividend Reinvestment Plan ("DRIP"), which is managed by its registrar, MUFG Corporate Markets. For shareholders who wish to receive their dividend in the form of shares, the deadline to elect for the DRIP is 21 August 2026.

Share buyback

During the period, the Group repurchased 1,093,193 shares (2025: 4,840,090) as part of a share buyback programme. Refer to Note 12 of the condensed consolidated interim financial statements for further details.

Related party transactions

Related party transactions are disclosed in Note 14 of the condensed consolidated interim financial statements. There have been no material changes to the related party transactions described in the 2025 Annual Report and Accounts.

Treasury Management

The Group seeks to ensure it has sufficient funds for day-to-day operations and to enable strategic priorities to be pursued. Financial risk is managed by ensuring the Group has access to sufficient borrowing facilities to support working capital demands and growth strategies, with cash balances held with major UK based banks. The Group has no foreign currency risk and as a consequence has not entered into any financial instruments to protect against currency risk.

Pensions

The Group does not have any defined benefit schemes in place but is subject to the provisions of auto-enrolment which require the Group to make certain defined contribution payments for our employees.

Risk management

The Group has identified its principal risks and uncertainties and they are regularly reviewed by the Board and Senior Management. Refer to pages 16 and 17 for details of the Group's risk management framework and principal risks and uncertainties.

Going concern

The condensed consolidated interim financial statements have been prepared on a going concern basis as the Directors have satisfied themselves that, at the time of approving the condensed consolidated interim financial statements, the Group will have adequate resources to continue in operation for a period of at least 12 months from the date of approval. Refer to Note 1 of the condensed consolidated interim financial statements for details of the Group's going concern assessment and the going concern statement.

Chris Hough

Chief Financial Officer

29 July 2026

PRINCIPAL RISKS

Risk management

The Board is responsible for establishing and maintaining the Group's system of risk management and internal control, with the aim of protecting its employees and customers and safeguarding the interests of the Group and its shareholders in the constantly changing environment in which it operates. The Board regularly reviews the principal risks facing the Group, together with the relevant mitigating controls, and undertakes a robust risk assessment. In reviewing the principal risks, the Board considers emerging risks, including climate-related risks, and changes to existing risks. In addition, the Board has set guidelines for risk appetite as part of the risk management process against which risks are monitored.

The identification of risks is undertaken by specific executive risk committees that analyse the risk universe by risk type across four key risk types: strategic risks, financial risks, operational risks and compliance risks. A common risk register is used across the Group to monitor gross and residual risk, with the results assessed by the Audit, Risk and Governance Committee and Board. The Audit, Risk and Governance Committee monitors the effectiveness of the risk management system through management updates, output from the various executive risk committees and reports from internal audit.

The principal risks do not comprise all of the risks that the Group may face and are not listed in any order of priority. Additional risks and uncertainties not presently known to management, or deemed to be less material at the date of this report, may also have an adverse effect on the Group.

FORWARD LOOKING STATEMENTS

This interim results announcement contains certain forward-looking statements with respect to the financial condition and results of operations of Foxtons Group plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The forward-looking statements are based on the Directors' current views and information known to them at 29 July 2026. The Directors do not make any undertakings to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this statement should be construed as a profit forecast.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

We confirm that to the best of our knowledge:

(a)   The condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

(b)   The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c)   The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).

By order of the Board

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended 30 June 2026

¹ Direct operating costs include impairment losses on trade receivables and contract assets of £17k (H1 2025: £196k).

² H1 2025 adjusted measures have been restated under the Group's revised adjusted items policy which is set out in Note 2. The policy now excludes non-cash IFRS 2 charges from the CEO's LTIP buyout award, as these relate to forfeited incentives from his former employer and do not represent underlying performance. Refer to Note 16 for definitions of the adjusted measures.

³ Adjusted EBITDA and Adjusted profit before tax are reconciled to the nearest statutory measure in Note 16.

⁴   Adjusted operating profit is reconciled to the nearest statutory measure in Note 2.

⁵ Adjusted earnings is reconciled to statutory profit after tax in Note 6.

The notes on pages 23 to 38 form part of these condensed consolidated interim financial statements.