(Alliance News) - Foxtons Group PLC on Thursday said it has bought estate agents Stones Residential and Gordon & Co for a total of GBP10.6 million, as it expands its lettings business.
The London-based estate agency said the two acquisitions will be funded through existing cash resources.
Foxtons bought Gordon & Co, based in south London, for GBP8.4 million and Stones Residential, which is in north London, for GBP2.2 million. Both have strong lettings businesses, Foxtons noted, with over 80% of their combined revenue coming from letting services across 2,500 tenancies.
Chief Executive Officer Nic Budden said: "Acquiring Gordon & Co and Stones Residential is a great opportunity for Foxtons to expand our coverage and reinforces our position as London's largest lettings agent."
Since 2019, Foxtons has increased the size of its lettings portfolio by 40% and now stands at over 27,500 tenancies, achieved both through acquisition and organic growth, it said. Looking ahead, the company expects lettings, together with financial services, to represent around 70% of group turnover.
In April, the company said its revenue for the first quarter ended March 31 was GBP30.0 million, up 8.3% from GBP27.7 million in the same quarter a year before.
Foxton shares were up 1.1% at 36.25 pence each on Thursday afternoon in London.
By Xindi Wei; xindiwei@alliancenews.com
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Foxtons (FOXT)