Today’s statement echoes comments from industry peers, highlighting a weaker Sales market in Q4 and a lower starting order book as we enter FY26. Whilst Group revenue and profit are still expected to grow in FY26, a cautious outlook leads us to reduce our adj. EPS forecasts by 19%/20% in FY26/FY27. The scale of the reduction is partially offset by the acquisition of Cauldwell. Whilst Lettings remains resilient, working capital investment in relation to Foxtons’ continued shift towards annual billing (a step to improve retention and competitiveness) reduces our free cash flow forecasts. On rebased numbers, Foxtons trades on a Dec. ’26 P/E rating of 12x vs. a peer group average rating of 13x. Management remains committed to its targets and, whilst the growth plan has shifted to the right, we back management to deliver a return to growth in more stable markets. We reduce our TP to 74p (from 94p) but stay at Buy.
