Foxtons turnover hit by 'subdued' London market
Estate agency Foxtons Group said its turnover during the last quarter of the year was down 12.1% due to a reduction in property sales commission.
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The group said the market in central London continued to be "subdued", with sales revenue falling 25.7% year-on-year against last year, when the capital's sales market operated at its highest level since 2008.
Foxtons does not anticipate a recovery in sales volumes until after the UK General Election in May.
Adjusted earnings before interest, taxes, depreciation, and amortization for the full year is expected to decline to £46m from £49.6m last year.
However, the company said in a statement that the London market "remains sound" in the long term.
"All our new branches are performing as we expected, with many of those branches located in areas outside the centre of London showing growth and having average selling prices that benefit from the recent stamp duty changes," it continued.
Numis analysts showed confidence in the firm saying: "Whilst uncertainty remains high in the short term ahead of the election, the longer term attractions of the business remain compelling and we therefore maintain our positive stance and argue that when the London market recovers, Foxtons will be highly geared to the upside."
The broker gave a 'buy' recommendation and a target price of 290p.
Shares were up 7.3% to 172.75p on Tuesday at 10:33.