You are here: Home - Mortgages - First Time Buyer - News -

Foxtons pushed into red by ‘weak’ London sales market

0
Written by:
30/07/2018
Foxtons has reported a loss before tax of £2.5m in the first half of 2018, blaming ongoing weakness in the London sales market, as mortgage revenue also dropped.

The estate agent’s slump comes after reporting a profit of £3.8m in the same period last year.

Revenue declined by 9% as the sales business slumped, while planned investments in people, brand and technology also took their toll on the bottom line.

Mortgage revenue from Foxton’s broker arm Alexander Hall fell 3% to £4.1m from £4.2m year-on-year, with remortgages helping to underpin performance.

Foxtons said its letting business has proved resilient, as revenue edged down 1% to £31.7m.

The estate agent’s balance sheet has no debt and a cash balance of £11.8m.

Chief executive Nic Budden said: “As expected the weak sales market impacted our performance in the first half of 2018.

“After a slow start to the year, performance in our lettings business improved throughout the period delivering another consistent result for the first six months.

“The property sales market in London is undergoing a sustained period of very low activity levels with longer and less visible transaction outcomes, which clearly impacts our business.

“We continue, however, to achieve market leading share of listings giving us confidence that our service led, results based model remains highly relevant to consumers.

“Going forward we will continue to invest in our proposition to enable us to maintain our differentiation in the minds of buyers, sellers, landlords and tenants.

“Looking ahead, availability of mortgage finance, absorption of stamp duty costs, and the return of confidence to the market will, amongst other factors, determine the timing and rate of increased activity levels.”

Foxton’s share price increased by 1.7% to 48.45p following the results, but this is a substantial drop from its height in February 2014 of nearly 400p.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Share of the Week: Costain

Graham Spooner, investment research analyst at The Share Centre, picks infrastructure specialist Costain as stock of the week.

Close