The estate agencies that are built on profit, not borrowing

In my last article, I focused on the estate agency groups carrying millions of pounds in debt and eye-watering interest bills, according to the most recent data filed at Companies House. So now let’s look at the other side of the balance sheet and focus on those who delivered strong results, not through financial engineering, but through profitable trading.

As a reminder, the end of year accounts filed, reflecting different accounting years ending between March 2024 and April 2025, are compared with the previous year.

Let’s start at the top end of the market with Savills UK Limited, which delivered revenue of £750.5m, up 6%, with profit after tax of £80.5m, an 11% increase on 2023. Net assets stand at £129.5m, cash at £57.4m but with intercompany debt standing at £34.7m. Even after paying £62m in dividends, the balance sheet remains robust. 

Move to the listed group level and Savills plc reported revenue of £2.4bn and profit after tax of £52.9m, up 34%. UK residential transactional revenue rose 7%, with second-hand sales up 13% on higher volumes. Despite paying £33.8m in dividends and purchasing treasury shares, net assets remain strong at £777.8m. 

Closer to the mainstream agency market, Connells Limitedproduced perhaps the most eye-catching turnaround. Revenue increased 14% to £1.1bn, and profit after tax surged 300% to £45.4m. Exchanges rose 11% to 78,955, mortgages up 7%, surveys up 15%. The £118.9m acquisition debt relating to Countrywide continues to reduce and, crucially, profits are more than covering financing costs. That is a good example of how debt should be managed and I give my respect to all in Connells.

LSL Property Services plc also delivered a notable recovery. Revenue increased 20% to £173.2m and the group moved from a £38.1m loss in 2023 to a £17.4m profit after tax. Net assets improved to £81.9m, cash rose to £60.7m and debt increased to £28.3m. The strategic shift to a capital-light, franchise-focused model is clearly strengthening both margins and resilience.

Dexters London Limited increased revenue 23% to £221.9m and profit after tax to £25.1m. Lettings now represent 62% of total revenue, up from 58%, underlining the value of recurring income. Net assets stand at £133.9m and debt remains modest at £5.0m from group undertakings. Growth here is being funded through operating cash flow, not structural borrowing,and is impressive.

Foxtons Group PLC also had a strong year. Revenue rose 11% to £163.9m and profit after tax jumped 155% to £14.0m. Lettings and financial services now account for 67% of revenues, providing greater stability. Cash generated from operations reached £30.3m. While debt increased to £18.0m to fund acquisitions, profitability and cash generation comfortably underpin that borrowing.

Then there’s The Property Franchise Group plc, who acquired Belvoir in March 2024. Revenue more than doubled to £67.3m and profit after tax rose 37% to £10.1m. Net assets increased to £144.1m. Net debt stands at £9.1m following acquisition borrowing. The business now spans franchising, financial services and licensing, with over 153,000 properties under management. 

Carter Jonas LLP delivered revenue growth of 10% to £94.0m and profit after tax of £18.8m, up 31%. Debt reduced materially and was refinanced. Even after paying £16.6m to members, the partnership remains financially sound.

M Winkworth plc increased revenue 17% to £10.8m and profit 6% to £1.8m, with no debt and cash of £4.1m. They may be a smaller player, but these results show they’re disciplined and profitable.

At a regional level, Arun Estate Agencies Limited increased profit after tax from £128k to £1.2m, with revenue up 4% to £55.7m. The balance sheet remains debt free, even after paying £12.2m in dividends. Lettings revenue growth of 13% underlines again the strength of recurring income.

Beresfords Group Limited had a solid year. Revenue rose 22% to £16.2m and the business swung from a £926k loss to a £437k profit after tax. Cash increased significantly to £2.85m and debt reduced. Growth was delivered across estate agency, lettings, financial services and surveying.

Andrews & Partners Limited remains in recovery mode but is moving in the right direction. Revenue increased 6% to £20.2m and the loss after tax reduced sharply from £2.1m to just £93k. Cash improved and debt was reduced during the year, with the business becoming debt free shortly after the balance sheet date. 

It’s more challenging to identify what’s happening at eXpWorld UK Limited as it has only just filed abbreviated accounts for 2024, after missing its extended deadline in December. We can see it has £6.2m debt (of which £4.3m is owed to its wider Group and interest free) and £5m cash, with £117k net assets. For an agent that boasts abouts its size and prowess that’s not much to shout about, is it? 

The common theme across these better performers is not flashy acquisition programmes or aggressive expansion funded by leverage. It is recurring income, cost control, sensible capital structures and profit converting to cash.

Which brings me, perhaps inevitably, to my own business, Spicerhaart Group Limited. Revenue increased 8% to £136.1m and profit after tax improved to £1.1m. Cash increased to £22.8m and the group remains debt free. Net assets sit at £21.0m even after a £2m dividend. It’s not the biggest balance sheet in the sector, nor the most acquisitive, but it is strong. And that’s what matters.

When you strip away the noise, the divide in our industry is not simply about size. It’s about structure. The groups that generated profit, strengthened net assets and kept debt at manageable levels now have choices. They can invest in AI, in people, in systems and in customer experience without first asking their lenders for permission.

The question for 2026 is not who grew fastest. It’s who built something sustainable. The accounts give us the answer.

Paul Smith is the founder and chairman of Spicerhaart.

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Read the orginal article: https://propertyindustryeye.com/the-estate-agencies-that-are-built-on-profit-not-borrowing/?utm_source=rss&utm_medium=rss&utm_campaign=the-estate-agencies-that-are-built-on-profit-not-borrowing