Estate agent sees profits slump

Profits at Foxtons have slumped as the London-focused estate agent blamed a 'significant fall in sales volumes' for dragging on revenue.
Estate agents for sale signs. Photo: Yui Mok/PA WireEstate agents for sale signs. Photo: Yui Mok/PA Wire
Estate agents for sale signs. Photo: Yui Mok/PA Wire

The group said sales for the year ended December 31 came in at £133m, down from £150m in 2015.

As a result, earnings for the period are expected to have plummeted 45 per cent to about £25m.

Hide Ad
Hide Ad

Chief executive Nic Budden has previously pinned a slowdown in residential property markets on uncertainty surrounding the EU referendum.

On Wednesday he described 2016 as a “challenging year”, warning: “Should current levels of sales activity continue in the short term, it is likely that 2017 volumes will be below those in 2016.”

In a trading statement, Foxtons said: “The reduction in group revenue for the year reflects the significant fall in sales volumes immediately following the first quarter of 2016.”

It added that in the final quarter of last year, revenues were £26m, compared with £35m in the same period in 2015.

Hide Ad
Hide Ad

However, lettings revenues in the fourth quarter proved more resilient, coming in flat at around £13m, driven by high levels of renewals. Lettings comprise more than half of group revenues.

Mr Budden said: “Our balanced business model provides resilience against sales market cycles and we have a strong balance sheet with no debt.

“Our high-touch approach to customer service continues to be a key differentiator and as the most recognised residential brand in London, we are uniquely positioned to manage through the market uncertainties and take advantage of any change in conditions.”

Related topics: