February 28, 2018 / 7:11 AM / 4 months ago

BRIEF-Foxtons pre-tax profit falls as London market slumps​

Feb 28 (Reuters) - Foxtons Group Plc:

* FY PRETAX PROFIT FELL 65 PERCENT TO 6.5 MILLION STG

* FY REVENUE 117.6 MILLION STG VERSUS 132.7 MILLION STG YEAR AGO

* ‍SALES REVENUE OF £42.6M, DOWN 23%,​

* ‍FOCUS ON TIGHT COST CONTROL WITH COSTS REDUCED BY £5.6M​

* ‍PROFIT BEFORE TAX £6.5M;​

* ‍RESILIENT PERFORMANCE FROM LETTINGS BUSINESS WITH REVENUE OF £66.3M DOWN 3% VERSUS PRIOR YEAR DRIVEN BY LOWER RENTAL RATES IN MARKET.​

* ‍SALES REVENUE OF £42.6M, DOWN 23%, A RESULT OF CONTINUED MARKET WEAKNESS CAUSING LOWER TRANSACTION VOLUMES.​

* ‍PROFIT BEFORE TAX £6.5M; £8.8M EXCLUDING £2.3M CHARGE RELATING TO ADJUSTED ITEMS.​

* ‍”WE ARE PLEASED TO HAVE DELIVERED A PERFORMANCE IN LINE WITH MARKET EXPECTATIONS.​

* ‍HOWEVER, SALES ACTIVITY IN LONDON PROPERTY MARKET IS NEAR HISTORIC LOWS AND THIS HAD A SIGNIFICANT IMPACT ON OUR OVERALL PERFORMANCE IN 2017.​

* ‍LOOKING AHEAD, WE EXPECT TRADING CONDITIONS TO REMAIN CHALLENGING IN 2018,​

* ‍CURRENT SALES PIPELINE IS BELOW WHERE IT WAS THIS TIME LAST YEAR.​

* ‍GROWING OUR LETTINGS BUSINESS IS A PRIORITY FOR FOXTONS AND WE HAVE ALREADY SEEN SOME ENCOURAGING RESULTS FROM INTRODUCTION OF NEW CUSTOMER INITIATIVES AND OUR USE OF TECHNOLOGY AND DATA;​

* ‍WE ANTICIPATE IMPLEMENTATION OF TENANT FEES BILL IN 2019. THOUGH AT THIS STAGE IT IS UNCLEAR EXACTLY WHAT LEGISLATION WILL LOOK LIKE, WE ARE EXPLORING WAYS TO MITIGATE IMPACT.​

* ‍FOXTONS REMAINS IN AN ATTRACTIVE POSITION WITH A ROBUST BALANCE SHEET, GOOD CASH GENERATION AND WITH NO DEBT​

* ‍WE EXPECT TRADING CONDITIONS TO REMAIN CHALLENGING DURING 2018, AND OUR CURRENT SALES PIPELINE IS BELOW WHERE IT WAS THIS TIME LAST YEAR.​

* ‍COST ACTIONS WE HAVE TAKEN AND OUR NET CASH POSITION MEAN WE ARE WELL PLACED TO WITHSTAND THESE CONDITIONS AND MAKE INVESTMENT WE HAVE IDENTIFIED.​

* ‍ENHANCED OPERATIONAL FOCUS, CUSTOMER INITIATIVES AND UTILISATION OF TECHNOLOGY AND DATA HAVE ALREADY SHOWN SOME PROGRESS;​

* ‍LONDON PROPERTY MARKET HAS ATTRACTIVE LONG-TERM CHARACTERISTICS AND OUR BRAND STRENGTH, COVERAGE AND APPROACH, POSITION US WELL TO MANAGE THROUGH CURRENT MARKET UNCERTAINTIES AND TAKE ADVANTAGE OF ANY FUTURE MARKET RECOVERY.”​

* ‍WHILST RECENT POLITICAL EVENTS HAVE PRODUCED UNCERTAINTY FOR BUYERS AND SELLERS, WE EXPECT LONDON TO REMAIN A HIGHLY ATTRACTIVE PROPERTY MARKET FOR SALES AND LETTINGS​

* ‍LONDON REMAINS A GLOBAL AND ECONOMIC POWERHOUSE WITH STRONG LONG-TERM FUNDAMENTALS INCLUDING HIGH POPULATION DENSITY AND LIMITED HOUSING STOCK.​ Source text for Eikon: Further company coverage: (London newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below