Foxtons Sells Douglas & Gordon Sales Business, Integrates Lettings Unit

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by Joe Hope

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Foxtons Group Plc said on Friday it has sold its Douglas & Gordon Ltd. sales business to D&G chief executive James Evans for a modest consideration, and has integrated its lettings business into its network.

The UK real-estate agency acquired London-based real-estate agent D&G in March for 15.5 million pounds ($21.2 million), with a large lettings business and loss-making sales business. The Lettings business performed well in 2021, but the sales business contributed to an operating loss of approximately GBP1.9 million in 2021, it said.

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The D&G sales business had total gross assets of GBP10.6 million at the end of 2021, primarily related to leasing rights of use assets and cash.

The company said it reviewed a number of options to address the profitability of the sales business, and concluded that selling the business to D&G Management and integrating the Lettings business was the best option.

The synergies from integrating the lettings business are expected to deliver an operating profit of approximately GBP4 million in 2022, while the settlement will result in an impairment loss of GBP3 million. A total of GBP3.7 million in cash will be left in the business to cover working capital and retained liabilities.

Write to Joe Hope at [email protected]

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