H1 results confirm another period of delivery, with revenue up 10% and adj. operating profit up 36% to £12.3m. Lettings market conditions remain supportive and momentum is expected to continue during H2. In line with industry peers, after a very strong Q1, Sales growth has been more subdued than anticipated. However, the Group retained its strong market share and we would highlight that Lettings remains the key profit contributor (64% of Group revenue and 74% of Group profit contribution). FY25 guidance is reiterated and we continue to forecast operating profit growth of 10%, accelerating to 19%/17% in FY26/FY27. On a five year view, management’s medium term target implies an 18% p.a. operating profit CAGR to 2029. Despite a strong track record and a compelling growth story, Foxtons’ shares trade at a discount to peers on a CY25 PER of only 11.6x. We continue to see significant value and retain a Buy rec.
