Foxtons pledges to improve workplace culture as estate agency sees profits double – London Wallet

Foxtons has promised to do more to improve working conditions at the estate agency firm following recent sexual harassment claims.

Head of Foxtons, Guy Gittins, said a “respectful and inclusive culture is of the utmost importance”.

His comments followed reports that employees were subject to “sexual harassment, antisemitism, racism and bullying” at the London-based estate agency.

A number of present and former staff told Bloomberg that they had been sexually harassed or racially abused by colleagues and that drink-driving was “commonplace” within the business.

Foxtons was also accused of having a culture of heavy drinking and drink-driving.

Gittins commented: “Estate agency is a people-first business, and maintaining an engaging, respectful and inclusive culture is of the utmost importance to us. We are focused on creating an environment which attracts, motivates and retains a diverse team of talent, that can together deliver excellent customer outcomes.

“Although significant progress has been made over the last two years, including the introduction of mandatory annual respect and inclusion training, strengthened ED&I policies, and enhanced whistleblowing and speak up processes, there remains more to do. This is particularly important to me and we remain steadfast in our commitment to an inclusive, professional and respectful culture and we will continue to seek further improvement and progress.” 

Gittins points to changes made to date, which are supporting the estate agency’s transformation, including: a 25% increase in female managers over the last two years; improving employee engagement; and a 12% increase in employee retention rates since 2022 as new career development and diversity programmes take effect.

He continued: “Our latest employee engagement survey, indicated that 87% of employees believe Foxtons values diversity and builds diverse teams, and 81% of employees recommend Foxtons as a great place to work, 8% higher than equivalent businesses in the UK.

“These initiatives are particularly important to me and while progress has been made, we recognise there is more we can and should do. We remain steadfast in our commitment to an inclusive, professional and respectful culture and we will continue to seek further improvements and progress.”

Gittins’ comments yesterday came as Foxtons reported an 11% increase in revenues in 2024 to £164m, while profit soared 121% to £17.5m.

Foxtons, with a market capitalization of £245m, reported robust financial results for Q4 2024, with significant growth in revenue and profit margins. The company highlighted a strategic focus on market share expansion and innovation, which contributed to the positive performance. Foxtons’ stock price rose by 2.95% following these announcements.

Financial highlights:

+ Group revenue up 11% to £163.9m, with growth delivered in each business:

+ Lettings revenue up 5%, boosted by earnings accretive acquisitions.

+ Sales revenue up 31%, driven by double-digit market share gains.

+ Financial Services revenue up 6%, due to operational upgrades and stronger new transaction volumes.

+ Adjusted operating profit up 38% to £21.6m, showing significant progress towards medium-term target of £28m-£33m (excluding amortisation of acquired intangibles, and consequentially restated from £25m-£30m). 

+ Stronger revenue to profit conversion drove improved adjusted operating profit margin of 13.2% (+260 bps).

+ Profit before tax up 121% to £17.5m.

+ Significant improvement in net free cash flow (2024: £9.8m; 2023: (£0.1m)) reflecting a return to strong cash generation and more normalised working capital movements.

+ Year-end net debt of £12.7m (2023: £6.8m net debt), reflecting improved cash generation, £12.7m of acquisition spend, and £2.8m of dividends.

+ Total dividend up 30% to 1.17p per share in-line with the Group’s progressive dividend policy.

Gittins said: “2024 was another strong year for Foxtons with revenue up 11% and adjusted operating profit up 38%. Across 2024 we retained our position as London’s largest lettings agent and the UK’s largest lettings estate agency brand, and increased our share of the London sales market by 20%.

“In Sales, significant market share gains drove revenue growth of 31% and meant we agreed the highest number of transactions in London last year, while our Lettings and Financial Services businesses continued to provide the steady, recurring revenues which underpin Group profitability.” 

Foxtons urges staff to ‘speak up’ amid sexual harassment and inappropriate behaviour claims