Foxtons Losses Up, Revenue Down, More Reliant On Renting

Foxtons Group plc said that its overall revenue was down and losses rose in its interim financial results for the half year ended 30 June 2019.

The company said that Group revenue declined by 3.5% to £51.1m compared to £53m in 2018 and statutory loss before tax rose to £3.2m from £2.5m.

Foxtons said that sales revenue was down 10% to £15.4m (£17.2m in 2018) due to weakness in the London market and a reduction in the average selling price. However, it said that continued resilience in the lettings business, even bearing in mind the tenant fees ban, had helped to offset this by producing revenue of £31.7m – the same as the comparable period in 2018.

Nic Budden, CEO, said: “The prolonged downturn in the London sales market and continued political uncertainty continues to impact our results.

“The lettings business remains our priority and continues to deliver stable results underpinned by strong structural drivers of demand.”

Budden said that the company expects conditions to remain challenging but that they are well positioned to capitalise on any recovery in the London market.

Although the latest results, like most company results, have been spun the way Foxtons wants them they probably, if anything, underplay the company’s performance. Performance in lettings is fair and even the fall in sales revenue is not that bad in the circumstances. Any critics of Foxtons, who might like to see the company perform badly, will likely be disappointed.

Source Foxtons Group plc
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