Acquisition

RNS Number : 3032G

Foxtons Group PLC

24 November 2020

 

FOXTONS GROUP PLC (the "Company" or "Foxtons")

ACQUISITION

Tuesday 24 November 2020

Foxtons Group plc (LSE: FOXT), London's leading estate agency, is pleased to announce the acquisition of the entire issued share capital of Aston Rowe Holdings Limited and its subsidiary Aston Rowe Limited (together "Aston Rowe").

Aston Rowe is a high quality independent estate agent operating primarily in Acton and Brook Green. Through the transaction, Foxtons will acquire Aston Rowe's lettings book comprising 689 tenancies, property management services and all 10 lettings employees. The existing Aston Rowe sales business does not form part of the transaction and will continue to be run by the existing owners, who will also retain the trading premises and the Aston Rowe name.

The Directors believe the lettings book will fit well with our existing business model and branch network due to the high level of customer service and strong growth record. It is expected that this transaction will be earnings enhancing in 2021.

The cash consideration for Aston Rowe is £2.2m, on a cash and debt free basis, of which £0.2m is deferred for a period of 6 months. The consideration is being funded by Foxtons' existing cash resources. The acquired Lettings business had unaudited revenue and profit before tax for the 12 months ending 31 August 2020 of £1.1m and £0.5m respectively. Gross assets at 31 August 2020 were £2.0m.

The implementation of our strategy to acquire well run lettings businesses with a strong local presence continues to gather momentum. Taking into account the earlier acquisitions made in 2020, Foxtons has now acquired a total of 1,600 tenancies, with historical annual revenues of £2.8m for a total consideration of £4.6m.

For further information, please contact:

Foxtons Group plc
Richard Harris, Chief Financial Officer Muhammad Patel, Investor Relations	[phone] [e-mail]
Sanctuary Counsel
Robert Morgan	[phone]

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