Member Article

Profits down Foxtons due to 'constrained' sales market

Foxtons has continued to see profits decline as “challenging market conditions” inhibit growth for the London-based company.

The controversial estate agency, which is often accused of playing a major role in the ‘gentrification’ of city housing, saw pre-tax profit slip 21.4% to £18.1m for H! 2015.

Having opened five new branches since the beginning of the year, Foxtons said it is focusing on the “fastest growing” areas of Outer London.

Sales revenue has also dropped to 10.9% to £33.7m for the same period last year as the sales market “remained constrained” during the months before the General Election.

However, Foxtons reported an increase in lettings revenue of 5.4% to £33.5m, maintaining the “positive momentum” seen in Q1.

Nic Budden, CEO, said Foxtons has delivered a “solid result” against “very tough comparable,” he commented: “As we predicted earlier in the year, the sales market remained constrained during the months before the General Election. With the election uncertainty now passed we have seen an increase in activity across our branch network.

“This is encouraging and we enter the second half of the year with stock levels up 12% compared to last year, a £1bn sales pipeline and our recently opened branches continuing to mature in line with expectations. In addition we have seen a noticeable increase in buyer applicants. Our lettings business has maintained the positive momentum seen in the first quarter of 2015.”

“Based on current activity levels continuing, we expect to meet full year market expectations with a stronger property sales performance in the second half of the year from higher transaction volumes.”

This was posted in Bdaily's Members' News section by Ellen Forster .