Foxtons buys east London’s Atkinson McLeod

Foxtons has bought east London agent Atkinson McLeod for £7.4m cash. The niche operator has four branches across central east London and was owned by a number of private shareholders. Foxtons said the acquisition “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”. Atkinson McLeod generates 90% of its revenue from 1,100 tenancies. Since 2019, Foxtons has significantly increased the size of its lettings portfolio through buying smaller firms. For the year ended 31 December 2022, non-cyclical and recurring revenue, primarily delivered by lettings, represented approximately 65% of group revenue. Atkinson McLeod’s unaudited revenue and operating profit for the 12 months ended 31 March 2022 were £3.1m and £900,000 respectively. Gross assets as at 31 March 2022 were £2.5m. Foxtons expects the deal to be earnings accretive in 2023, and through the delivery of synergies, post-completion profitability will be enhanced from historical levels. Foxtons will present its full year results for the year ended 31 December 2022 on 7 March 2023. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews