Foxtons Group plc says that it is enduring one of the toughest sales markets ever in London, according to its latest Trading Update.
The company said the Group’s performance for the year ending 31 December was in line with the Board’s expectations. However, total group revenue for 2018 was circa £111m, down from £118m in 2017. Revenue was particularly affected by a sharp drop in sales revenue to circa £36m compared to £43m the year before. Lettings revenue softened the blow somewhat as it rose £1m compared to 2017 to reach £67m.
Nic Budden, CEO, said: “2018 was one of the toughest sales markets we have ever had in London with transactions falling from last year’s historically low levels. Considering this, we have delivered a solid performance and taken steps to ensure the business is best prepared for these conditions through prudent actions on cost and enhancements to our proposition. We are confident in our model which provides high levels of service to achieve the best results for our customers.
“Looking ahead, we expect trading conditions in the sales market to remain challenging throughout 2019. We have become accustomed to operating in these conditions and are well placed to withstand them given our leaner cost base and continued strong balance sheet with no debt.”
An expectation that your sales revenue will fall by such a substantial amount is quite an expectation for any company board to have. Foxtons will no doubt be very glad it has such a strong foothold in the London lettings market.