Foxtons has confirmed its intention to sell the sales side of Douglas & Gordon, the London agency chain it acquired only last year.
The lettings side of D&G will be integrated into the Foxtons rentals business at a general meeting next month.
In a trading statement this morning the agency says:
Foxtons delivered a much improved performance, with revenues across all business segments for the twelve month period well ahead of the prior year and 2019, reflecting organic market share growth, the contribution from acquired lettings businesses and improved market conditions.
Total revenue for the full year was circa £133m, up 42% on the prior year, including a £16.8m contribution from Douglas & Gordon ("D&G"). The Group expects adjusted operating profit in 2021 to be circa £7m, at the top end of market expectations.
As announced on Friday 14 January, subject to shareholder approval at a General Meeting on 10 February the Group intends to simultaneously dispose of the D&G sales business and integrate the D&G lettings business into the Foxtons network. The D&G lettings business is expected to deliver operating profit of around £4m in 2022, an increase of over £2m on the operating profit contributed by the whole D&G business in 2021.
Looking at the year ahead, the Group expects a further improvement in adjusted operating profit, supported by the profit contribution from the D&G lettings business, increasing rental levels in the London residential market and the implementation of improved digital marketing capabilities.