Foxtons foresees 2017 slump as profits fall
Foxtons has reported a 46% fall in profits for 2016 and hinted at a continuing downturn ahead of its full-year results.
Pretax profits are expected to fall from £46m to £25m, in large part owing to sales revenue nearly halving from £20m to £12m in the fourth quarter. Total revenue slumped from £150m to £133m in 2016.
The estate agent said that if current levels of activity continue in 2017, it would expect this year to be even weaker.
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Foxtons has reported a 46% fall in profits for 2016 and hinted at a continuing downturn ahead of its full-year results.
Pretax profits are expected to fall from £46m to £25m, in large part owing to sales revenue nearly halving from £20m to £12m in the fourth quarter. Total revenue slumped from £150m to £133m in 2016.
The estate agent said that if current levels of activity continue in 2017, it would expect this year to be even weaker.
Its share price, which has fallen by 42% since the EU referendum, opened to a 10% slump on Wednesday following the announcement, falling from 99p down to 89p before recovering to 96p. Analysts at Jefferies also lowered their target share price from 110p to 100p.
Despite what it called a “challenging year”, Foxtons said its lettings revenues saw no change in the fourth quarter, matching the £13m it made in 2015.
Nic Budden, chief executive of Foxtons, added that the company was still making good progress in its goals, which include expanding its letting activity for PRS operators.
Foxtons opened seven branches in 2016 and is due to open another two in Q1 2017.
• London estate agent Stirling Ackroyd has agreed a company voluntary agreement with creditors through insolvency firm KRE. Partners said the decision would make the business stable again as it prepares to open an eighth branch in the capital.
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