Foxtons Group PLC Acquisition of Atkinson McLeod Limited (9230R)
06 Marzo 2023 - 8:00AM
UK Regulatory
TIDMFOXT
RNS Number : 9230R
Foxtons Group PLC
06 March 2023
Foxtons Group plc
Acquisition of Atkinson McLeod Limited
6 March 2023
Delivering on acquisition strategy and reinforcing position as
London's largest lettings agent
Foxtons Group plc ("the Group" or "Foxtons") today announces the
acquisition of Atkinson McLeod Limited ("Atkinson McLeod") for a
consideration of GBP7.4m, adjusted for current assets less total
liabilities at completion, which will be funded through the Group's
existing cash resources.
Atkinson McLeod is a high-quality estate agent, operating in
Central East London across four branches, with a strong lettings
business that generates c.90% of its revenues across c.1,100
tenancies.
Strategic rationale
The acquisition of Atkinson McLeod represents further progress
against our strategy of acquiring lettings businesses that deliver
an attractive return on invested capital, enhance earnings and
improve the resilience of the Group's earnings, whilst also
reinforcing Foxtons as London's largest lettings brand.
Since 2019, the Group has significantly increased the size of
its lettings portfolio through acquisition, driving good levels of
growth in lettings revenue and profitability. For the year ended 31
December 2022, non-cyclical and recurring revenues, primarily
delivered by lettings, represented c.65% of Group revenue,
significantly enhancing the earnings resilience of the Group.
Acquisition terms and financial impact
The acquisition constitutes a class 2 transaction pursuant to
the UK Listing Rules. For the purposes of the LR 10.4.1 R
(Notification of class 2 transactions), Atkinson McLeod's unaudited
revenue and operating profit for the 12 months ended 31 March 2022
were GBP3.1m and GBP0.9m respectively. Gross assets as at 31 March
2022 were GBP2.5m.
The Directors believe the acquisition of Atkinson McLeod will be
earnings accretive in 2023, and through the delivery of synergies,
post-completion profitability will be enhanced from historical
levels.
Total consideration for the acquisition is GBP7.4m, adjusted for
current assets less total liabilities at completion, of which
GBP0.7m is deferred for a period of 12 months.
The business is being bought from certain private individual
shareholders.
Full year results 2022
The Group will present its full year results for the year ended
31 December 2022 on 7 March 2023.
Guy Gittins, Foxtons CEO, commented :
"The acquisition of Atkinson McLeod will grow our lettings
portfolio, further build on our successful acquisition track record
and reinforce our position as London's largest letting agent. The
acquisition will add c.1,100 tenancies and annualised revenues of
around GBP3 million, demonstrating further progress with our
acquisition strategy. Since 2019, we have acquired 7 lettings
portfolios, growing our own portfolio by 38%, which now stands at
more than 27,500 tenancies. We greatly look forward to welcoming
the Atkinson McLeod team to the Foxtons Group."
Giles Atkinson, Atkinson McLeod Co-founder, commented:
"With its strong service ethos and high-performance culture,
Foxtons is a natural fit for our business, our colleagues and
customers alike. After a straightforward and smooth sales process,
it is exciting to be joining such a well-respected and admired
group that is focused on delivering best in class service for
customers."
-ENDS-
For further information, please contact:
Foxtons Group plc
Chris Hough, Chief Financial investor@foxtonsgroup.co.uk
Officer +44 20 7893 6261
Muhammad Patel, Investor
Relations
TB Cardew Foxtons@tbcardew.com
+44 7789 998 020/ +44 7738
Tom Allison/Ed Orlebar 724 630
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