January 25, 2018 / 7:16 AM / a year ago

UK estate agents Foxtons foresees challenging 2018 after earnings drop

LONDON, Jan 25 (Reuters) - London-focussed estate agents Foxtons said its core earnings and revenue fell in 2017 in line with market expectations due to a slump in sales and that this year would remain challenging for the business.

The firm said 2017 revenue will fall around 12 percent to 117 million pounds ($167 million) and adjusted core earnings will drop 40 percent to roughly 15 million pounds. It will also take a one-off 2 million pound charge as it manages its cost base.

“We expect trading conditions to remain challenging throughout 2018,” said Chief Executive Nic Budden.

“We are well placed to withstand these conditions due to our strong balance sheet with no debt, and we will provide an update on a number of strategic initiatives which we have been working on.”

Foxtons, which had been a symbol of the British capital’s property boom, saw its profits more than halve in 2016 and had said in as early as 2014 that the once runaway real estate market was cooling.

$1 = 0.7008 pounds Reporting by Costas Pitas

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