Foxtons Group has experienced an 8% share price decline over five days to 51.80p, despite announcing its first acquisition outside the South East region last week.
The London-based estate agency’s shares have fallen more than 10% during the month, even as the company pursues geographic expansion beyond its traditional operating area.
Birmingham acquisition marks geographic shift
Foxtons acquired Birmingham independent lettings agent FleetMilne for £3.2 million, with an additional £0.8 million deferred payment dependent on 12-month performance targets. The transaction represents the company’s first move outside the South East after recent acquisitions in London’s commuter belt.
The agency also acquired Cauldwell Property Services in Milton Keynes earlier this month, continuing its expansion strategy beyond the capital.
Financial performance and market challenges
Foxtons’ unaudited year-end trading update for the 12 months to 31 December 2025 showed total revenue of approximately £172 million, up 5% from £163.9 million in 2024. However, adjusted operating profit remained flat at approximately £22 million compared to £22.1 million in 2024.
Dan Coatsworth, Head of Markets at AJ Bell, noted the company faces multiple headwinds. “Foxtons is battling a perfect storm of unfavourable property market conditions, dwindling investor interest in smaller companies, and negative news flow,” he said.
Coatsworth added that analysts have downgraded Foxtons’ earnings forecasts by 12% over the past month, contributing to share price pressure. “There is no getting over the fact that it is still heavily exposed to the London sales market and that might explain why it is on a journey to diversify earnings geographically,” he said.
Market outlook
The share price decline suggests investor concern over the company’s London sales market exposure outweighs optimism about geographic diversification efforts. The company’s flat operating profit despite revenue growth indicates margin pressure in current market conditions.