Foxtons Group

Website: Foxtons Group
Index: FTSE Small Cap
EPIC: FOXT
Supersector: Real Estate
Sector: Real Estate Investment and Services
Subsector: Real Estate Services
Market Cap: £127.07M
Payout Frequency: Semi-Annual

Foxtons Group Dividend Analysis and Summary

Key Dividend Details

Final dividend per share: 0.93p (FY24: 0.95p)
Interim dividend per share: 0.24p (FY24: 0.22p)
Total dividend per share (FY25): 1.17p (unchanged year-on-year)
Ex-dividend date: 09/04/2026
Record date: 10/04/2026
Payment date: 15/05/2026 (subject to AGM approval on 07/05/2026)
Earnings cover: c. 3.7x on basic EPS (4.3p/1.17p); c. 4.3x on adjusted EPS (5.0p/1.17p)
Free cash flow cover: c. 3.1x (Net FCF £11.2m vs dividends paid £3.6m)
Balance sheet/leverage: Net debt £16.9m; net debt/Adj. EBITDA 0.7x; expanded RCF to £40m
Capital returns mix: £3.6m dividends + £5.5m buybacks in FY25 (shares repurchased and cancelled: 9.8m)

Dividend Sustainability and Growth Outlook

Coverage and cash generation are strong: Dividend is well covered by both earnings and free cash flow. Non-cyclical/recurring revenues (primarily Lettings) comprise 67% of Group revenue, supporting cash flow resilience.
Operational backdrop: Adjusted operating profit was flat (FY25: £22.2m) amid cost inflation (NI and Living Wage) and a loss-making Sales segment. Management has enacted £1.5m annual cost savings from HQ changes to help offset cost pressures.
Capital allocation discipline: Policy targets a progressive dividend alongside accretive acquisitions and buybacks. The unchanged total DPS and slightly lower final DPS suggest prudence while integrating acquisitions and navigating a weak Sales market.
Headroom and flexibility: Low leverage and increased RCF provide ample flexibility to sustain the dividend through cycles, though management is prioritising M&A and buybacks where returns are attractive.

Structural/Policy Factors That May Affect Future Dividends

M&A expansion: Two platform acquisitions completed in January 2026 (Milton Keynes and Birmingham; consideration ~£10.5m), plus the Marshall Vizard bolt-on in 2025. Integration should enhance recurring Lettings revenue over time but requires near-term cash and management focus.
Share buybacks: £5.5m in FY25 with cancellation of shares reduces future dividend cash outflow for a given DPS and signals confidence; however, buybacks may be prioritised over near-term DPS growth if shares remain undervalued.
RCF increased to £40m: Extends capacity to fund acquisitions while keeping leverage targets (<1.25x at year end) supportive of ongoing dividends.
Renters’ Rights Act (from 01/05/2026): Expected to lift managed/ancillary services uptake and strengthen inflation linkage via annual rent reviews (a medium-term tailwind). But the shift to periodic tenancies changes revenue recognition and is expected to drive a working capital outflow of ~£10m over two years (final phase through 2027), temporarily absorbing cash.
HQ lease changes: Early lease surrender and relocation deliver ongoing £1.5m annual operating cost savings from Jan 2026, supporting margins and dividend capacity.

Risks and Flags Relevant to Dividend Stability

Sales business loss-making: Sales adjusted operating loss widened to £5.7m; prolonged market weakness could weigh on Group profitability until turnaround gains traction.
Cost inflation: Higher employment and compliance costs continue to pressure margins; savings mitigate but may not fully offset if inflation persists.
Interest on client monies falling: Lower rates reduced this income stream (FY25 £5.7m vs £6.6m), a modest headwind to earnings.
Working capital headwind from RRA: The ~£10m expected outflow through 2027 is manageable but could moderate the pace of dividend growth near term while also funding acquisitions.
Execution and leverage: Rising net debt (to £16.9m) and continued acquisition activity introduce integration and balance sheet risks; covenant headroom is comfortable, but reverse stress testing indicates a potential covenant breach only under a severe downturn by March 2027 (low probability scenario).

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
10/04/2025	16/05/2025	Final	0.95p	GBX
07/08/2025	15/09/2025	Interim	0.24p	GBX

Total (Annual Dividends Per Share): 1.19p

Dividend Yield = Annual Dividends Per Share (1.19p) ÷ Share Price (43.7p) = 2.72%

Ex Dividend Date	Payment Date	Type	Amount	Currency
09/04/2026	15/05/2026	Final	0.9300p	GBX
07/08/2025	15/09/2025	Interim	0.24p	GBX
10/04/2025	16/05/2025	Final	0.95p	GBX
08/08/2024	16/09/2024	Interim	0.22p	GBX
11/04/2024	28/05/2024	Final	0.70p	GBX
03/08/2023	12/09/2023	Interim	0.20p	GBX
13/04/2023	31/05/2023	Final	0.70p	GBX
25/08/2022	27/09/2022	Interim	0.20p	GBX
12/05/2022	24/06/2022	Final	0.27p	GBX
26/08/2021	28/09/2021	Interim	0.18p	GBX
26/04/2018	25/05/2018	Final	0.27p	GBX
31/08/2017	26/09/2017	Interim	0.43p	GBX
27/04/2017	25/05/2017	Final	0.33p	GBX
01/09/2016	27/09/2016	Interim	1.67p	GBX

Year	Interim	Final	Currency	Total	Change
2024	0.220	0.700	GBX	0.920	2.220
2023	0.200	0.700	GBX	0.900	91.480
2022	0.200	0.270	GBX	0.470	161.110
2021	0.180		GBX	0.180	-33.330
2018		0.270	GBX	0.270	-64.470
2017	0.430	0.330	GBX	0.760	-54.490
2016	1.670		GBX	1.670

Number of Shares:

Payment	Paid	Amount
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