Foxtons Group acquires Ludlow Thompson for £10m to expand London lettings market presence

Foxtons Group plc, London’s largest lettings agent, has announced the acquisition of Ludlow Thompson Holdings Limited and its subsidiary companies for £10 million. This strategic move is set to enhance Foxtons Group’s presence in the capital’s lettings market.

Strategic Rationale and Acquisition Details

• Ludlow Thompson, a prominent lettings-focused estate agent with 7 branches across London, specializes in standard and bespoke property management services.
• With over 70% of its total revenue derived from lettings, Ludlow Thompson has built a loyal customer base over its 30-year history.
• The acquisition aligns with Foxtons Group’s strategy to grow its non-cyclical and recurring revenue streams, further consolidating its position as London’s top lettings agent.

Financial Impact and Growth Prospects

• The transaction will be funded through Foxtons Group’s existing cash resources and a £20 million revolving credit facility.
• For the financial year ending December 2022, Ludlow Thompson reported unaudited total revenue and profit before tax of £7.3 million and £0.1 million, respectively.
• Foxtons Group expects the acquisition to significantly enhance Ludlow Thompson’s profitability and contribute to the Group’s 2024 earnings, aiming for a return on capital of 20%.

Executive Comments on the Acquisition

Guy Gittins, CEO of Foxtons, expressed excitement about the acquisition, noting Ludlow Thompson’s leading position in local markets and its fit with Foxtons’ operational model. Stephen Ludlow and David Thompson, Co-founders of Ludlow Thompson, reflected on the decision to sell the business and their confidence in Foxtons as the right choice for future growth.

Future Outlook

With this acquisition, Foxtons Group aims to further strengthen its lettings portfolio, having grown it by over 40% since 2020. The company looks forward to integrating Ludlow Thompson into its network, emphasizing its focus on growing recurring lettings revenues and achieving its operating profit ambition in the medium term.