Highlights how the Company's inflation-protected business model, which benefits from an optimal capital structure, high contribution margins and significant operating leverage, can support the Company's turnaround.
LONDON, July 5, 2022 /PRNewswire/ -- Jassim Alseddiqi, a UAE-based serial entrepreneur and founder of several financial, technology and real estate ventures, today sent a letter to the management of Foxtons Group plc ("Foxtons" or the "Company"), in which he has personally acquired a 2% stake. In his letter to the Chairman of Foxtons, Alseddiqi stated that he supports management's plan to turn the Company around and that any attempt to sell the Company at this time would be giving away the Company's enormous future potential.
Foxtons is the leading real estate agency in the London, UK market with lettings, sales and mortgage broking activities. Foxtons currently manages more than 25,000 tenancies in London, operates one of the largest sales agencies in London, and is actively growing its Alexander Hall mortgage broking business.
The full text of Alseddiqi's letter is below.
5th July 2022
The Board of Directors
Foxtons Group plc
Building One, Chiswick Park
566 Chiswick High Road
London W4 5BE, United Kingdom
Dear Mr. Rich,
RE: Foxtons Group plc situation
I, in my personal capacity, have acquired in the past few days 2% of voting shares of Foxtons
Group plc ("Company").
I join other fellow shareholders in expressing concern with the situation in the Company; as you know, the Company's value has dropped more than 80% since it went public in 2013. Having said that, I believe shareholders should give you and the senior team the opportunity to turn around the business.
Other shareholders indicated publicly that the Company should sell itself and offered a
comparison with Countrywide. Respectfully, this comparison is irrelevant as Countrywide had a debt issue. The Company today has a strong balance sheet and is debt free with ample cash. The Company is also the most recognized estate agency brand and the largest lettings book in London. Furthermore, the Company has an inflation protected business model, benefits from an optimal capital structure, high contribution margins, and significant operating leverage. Any attempts for the Company to sell itself at this stage forgoes the massive future potential of the Company.
The Company should focus on growth opportunities, like expanding Foxtons' sales and letting business to the affluent London boroughs, and further cross-selling its property management services to its lettings book clients. Finally, it is no surprise to anyone that the Company needs to be more cost conscious to improve profitability margins and set the right discipline.
Please do not hesitate to contact me if I could be of any assistance to the Company.
Best Regards,
Jassim Alseddiqi
