Foxtons buys rival lettings service for £10m

Foxtons has snapped up London lettings agency Ludlow Thompson for £10m.

Ludlow Thompson, founded 30 years ago, has seven branches in London, generating over 70 per cent of its total revenue from Lettings. 

A statement from Foxtons this morning says he acquisition reflects “continued progress against the Group's lettings portfolio acquisition strategy, which is focused on growing non-cyclical and recurring revenue streams.”

it continues: "The acquisition of Ludlow Thompson further consolidates the Group's position as London's largest lettings agent and is the second acquisition delivered in 2023, with £17.4m invested in 2023 and over 2,800 tenancies acquired.

"... Following the delivery of operating synergies, which include integrating Ludlow Thompson into the Foxtons branch network and scalable operating platform, Ludlow Thompson will deliver significantly higher levels of profitability from the £0.1m of profit before tax reported for the 12 months ended 31 December 2022."

Foxtons chief executive Guy Gittens, tells shareholders: "We are proudly London's largest lettings agent, with a proven track record of acquiring and integrating high quality businesses. Since inaugurating our lettings acquisition programme in 2020 we have grown our portfolio by over 40%, which now stands at over 28,200 tenancies. The acquisition reflects continued progress against our acquisition strategy and our focus on growing recurring lettings revenues, and further supports the delivery of our £25m to £30m operating profit ambition in the medium term."